BILL ANALYSIS �
AB 2137
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Date of Hearing: April 28, 2014
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 2137 (Quirk) - As Amended: April 21, 2014
SUBJECT : Energy efficiency programs: information available for
small businesses.
SUMMARY : This bill would require both the Office of Small
Business Advocate (OSBA) within the Governor's Office of
Business and Economic Development (GO-Biz) and the California
Public Utilities Commission (PUC) to post information regarding
energy efficiency programs available to small businesses in
California on their internet websites. Specifically, this bill :
1)Makes various declarations related to the benefits the state
and its small businesses may achieve by maximizing the use of
energy efficiency programs.
2)Requires OSBA, in consultation with the PUC, the California
Energy Commission (CEC), and local publicly owned electric and
gas utilities, to develop and maintain on its Internet Web
site a section dedicated to the energy efficiency programs
available to small businesses within the state.
3)Requires the PUC to develop and maintain on its Internet Web
site a section dedicated to the various electrical and gas
corporation energy efficiency programs available to small
businesses within the state.
4)Provides that the PUC's authority to make information
available relative to:
a) Energy efficiency programs available to target
audiences other than small businesses.
b) Other public utility programs that may be of special
interest to small businesses.
EXISTING LAW
1)Establishes the OSBA within the Governor's Office of Business
and Economic Development. (Government Code 12098)
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2)Establishes the duties and functions of OSBA, which includes
advisory participation in the consideration of all legislation
and administrative regulations that affect small businesses.
(Government Code 12098.3)
3)Requires OSBA to post specified information on its Internet
Web site, including information about emergency preparedness,
responses, and recovery strategies, along with programs
administered through the statewide network of small business
financial development corporations. (Government Code 12098.8)
4)Requires the PUC to review and accept, modify, or reject a
procurement plan for each electrical corporation that includes
showing that the corporation will first meet its unmet needs
through all available energy efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
(Public Utilities Code 454.5)
5)Requires the PUC, in consultation with the CEC, to identify
all potentially achievable cost-effective electricity
efficiency savings and to establish efficiency targets for
electrical corporations to achieve pursuant to their
procurement plan. (Public Utilities Code 454.55)
6)Requires the PUC, in consultation with the CEC, to identify
all potentially achievable cost-effective natural gas
efficiency savings and to establish efficiency targets for gas
corporations to achieve. (Public Utilities Code 454.56)
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's statement. According to the author, "Small businesses
are the backbone to California's economic prosperity. Helping
small businesses become more energy efficient can help
California reduce energy consumption, and thus, help reduce
greenhouse gas emissions (GHG) in our most impacted
communities. Maximizing the energy efficiency programs the
state electric utilities offer can help small business become
more prosperous, as well as assist in reducing load during
peak demand. This is a good measure that could have
significant, positive impacts throughout the state."
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2)Energy efficiency in California. To meet California's AB 32
climate goals - a reduction in greenhouse gas emissions to
1990 levels by 2020 - the state has taken a multifactorial
approach that includes renewable energy mandates and
strategies that increase energy efficiency while decreasing
energy consumption.
California's per capita energy consumption is among the lowest
in the country and has remained relatively unchanged for forty
years - in sharp contrast to the rest of the nation. However,
in that same time-frame the state's population has doubled,
necessitating a comprehensive approach to energy resiliency,
consumption, and efficiency.
Energy efficiency efforts have targeted both residential and
non-residential customers, encompassing advanced building and
appliance standards, incentive programs, design and
installation training, and public outreach.
In November 2012, a PUC decision approved a two-year budget of
$1.9 billion for 2013-2014 energy efficiency programs
administered by the IOUs - PG&E, SCE, SDG&E, and SoCalGas.<1>
Budgets were also approved for two regional energy networks
(San Francisco Bay Area Regional Energy Network and Southern
California Regional Energy Network) and one community choice
aggregator (Marin Energy Authority).
3)Energy efficiency programs for small businesses. The author
claims the state has not developed a comprehensive outreach
program for small businesses, even though funds are being
invested in energy efficiency upgrade and outreach programs
across the state. Only three energy efficiency programs
directly targeting small businesses could be located:
Anaheim Public Utilities offers the "Small Business
Energy Management System Program". It provides free
electrical energy use evaluations, retrofit funding, and
installation assistance. Small businesses are defined as
those that are privately owned with a monthly peak demand
of less than 50 kW.
Glendale Water and Power's offers the "Smart Business
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<1> PUC Decision 12-11-015.
http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M034/K299/34
299795.PDF
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Energy Saving Upgrade Program". It allows small business
customers (with monthly electric bills less than $3,000) to
choose from a list of improvements, installed for free, up
to $2,000.
Burbank Water & Power offers the "Business Bucks Energy
Efficiency Grant Program", providing small and mid-sized
businesses up to $2,000 for certain retrofits.
Small businesses seeking to improve energy efficiency are also
eligible for programs administered by investor- and
public-owned utilities, such as commercial/non-residential
low-interest loan, grant, or rebate programs. Loan financing
rates range from 0% to 7%, while rebates vary according to
technology. The utilities offering programs include Alameda
Municipal Power, Anaheim Public Utilities, Burbank Water and
Power, City of Lompoc Utilities, City of Palo Alto Utilities,
Glendale Water and Power, IID Energy, LADWP, Lodi Electric
Utility, Modesto Irrigation District, Pacific Power, Pasadena
Water and Power, PG&E, Redding Electric, Riverside Public
Utilities, Roseville Electric, SCE, SDG&E, Silicon Valley
Power, SMUD, SoCalGas, and Truckee Donner Public Utility
District.
These programs can be found on the Database of State
Incentives for Renewables and Efficiency (DSIRE)<2>, a
comprehensive source of information on incentives and policies
supporting renewables and energy efficiency in the U.S. DSIRE
is funded in part by the U.S. Department of Energy and
operated by the North Carolina Solar Center at North Carolina.
State University. The database can be searched by incentives
related to renewables or energy efficiency, eligibility
(commercial, government, nonprofit, schools, etc.), state,
technology, incentive type, and program administrator
(federal, state, utility, etc.). DSIRE will be updated in the
summer of 2014 to offer expanded data accessibility and an
array of new tools.
An informational resource for small businesses is the US
Environmental Protection Agency's (EPA) ENERGY STAR Small
--------------------------
<2> Database of State Incentives for Renewables and Efficiency.
http://www.dsireusa.org/
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Business Network.<3> Businesses can use the ENERGY STAR
Portfolio Manager, the EPA's online energy and water tracking
tool, to assess current energy performance. Businesses can
then receive tips for saving energy or find expert help.
Specific technical resources are available for common small
business types, including auto dealers, grocery and
convenience stores, home-based businesses, lodging, renters
and tenants, and restaurants. The program does not provide
financing, rebates, or incentives for energy efficiency
upgrades.
1)An energy efficiency pilot program: Energy Upgrade
California.<4> Energy Upgrade California is a statewide
initiative designed to help California meet its climate action
and energy efficiency goals. It is funded by investor-owned
utility customers as ordered by the PUC.
The Energy Upgrade California website allows individuals to
learn about California's energy goals, acquire water and
energy saving tips, and search for energy efficiency incentive
programs by zip code. The website is targeted at homeowners
and unfortunately does not include information for business
owners. The search tool provides homeowners with incentive
options from IOUs and Publicly Owned Utilities (POUs). For
example, a search within the State Capitol's 95814 zip code
offered information on programs from both PG&E (an IOU) and
SMUD (a POU).
Although the initiative is funded by IOU ratepayers, POU
ratepayers fund the incentives available in their area. It is
unclear whether POU funds contributed to the Energy Upgrade
California website. The website is expanding this summer but
it is unknown whether the updated version will include
information and search tools for small businesses.
A recent PUC decision adopted a statewide marketing,
education, and outreach plan for residential and small
business energy management.<5> Energy Upgrade California will
be the statewide umbrella brand for energy information and
--------------------------
<3> US EPA. ENERGY STAR Program.
http://www.energystar.gov/buildings/facility-owners-and-managers/
small-biz
<4> Energy Upgrade California. http://energyupgradeca.org/en/
<5> PUC Decision 13-12-038.
http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M084/K470/84
470121.PDF
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encouraging demand-side management actions by residential and
small business consumers.
The author may wish to consider an amendment that directs
Energy Upgrade California to provide on its Internet Website
information related to energy efficiency and demand side
management programs for non-residential customers, with an
emphasis on small businesses.
2)Office of Small Business Advocate (OBSA). OSBA resides within
the Governor's Office of Business and Economic Development
(GO-Biz) and advocates for California's small business
community.<6> OSBA's key services include:
a) Conducting educational workshops for small business
owners on topics such as the Affordable Care Act,
California's Employment Training Panel program, and
disaster preparedness and recovery.
b) Managing a state interagency working group on small
business regulatory issues to promote information-sharing
between departments on strategies and techniques to reach
small businesses.
c) Providing online resources for small businesses on
technical assistance, financial assistance, and state
procurement opportunities.
d) Providing individual assistance to small business
owners, such as answering questions and connecting owners
to points of contact within state departments.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Brandon Gaytan / U. & C. / (916)
319-2083
---------------------------
<6> Office of Small Business Advocate Annual Report to the
Governor and Legislature. January 2014.
www.business.ca.gov/Portals/0/SmallBusiness/Docs/FY 2012-13 OSBA
REPORT.pdf
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