Amended in Senate June 16, 2014

Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2229


Introduced by Assembly Member Bradford

February 20, 2014


An act to add and repeal Section 454.57 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2229, as amended, Bradford. Energy efficiency: military bases and facilities.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined. The Public Utilities Act requires the Public Utilities Commission to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation’s proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, 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.

The act requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost-effective natural gas efficiency savings and to establish efficiency targets for gas corporations to achieve, and requires that a gas corporation first meet its unmet resource needs through all available gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.

This bill would require the Public Utilities Commission to encourage electrical corporations and gas corporations to expedite implementation of energy efficiency measures and enable the achievement of additional energy goals at United States Department of Defense military bases and facilities and United States Coast Guard facilities.

This bill would require the Public Utilities Commission tobegin delete authorize the energy efficiency program for the above purposeend deletebegin insert approve financial incentives for energy efficiency upgrades at military bases and facilities and United States Coast Guard facilitiesend insert through existing energy efficiency programs administered by electrical corporations and gas corporations. Because a violation of an order or a direction of the commission is a crime, this bill would impose a state-mandated local program.

This bill would repeal the above requirements on January 1, 2020.

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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The United States Department of Defense and the United
4States Coast Guard, as the nation’s largest energy users, are
5required to comply with laws enacted by Congress, executive
6orders, and goals established by military leaders, including
7requirements for 3 percent annual reductions in facility energy
8intensity, which is measured by energy used per gross square foot.

P3    1(b) The United States Department of Defense and the United
2States Coast Guard are reducing energy demand through
3conservation and efficiency. The United States Department of
4Defense and the United States Coast Guard are improving the
5efficiency of their existing buildings through retrofitting, including
6the use of advanced lighting, heating, ventilation, and
7air-conditioning technologies.

8(c) The United States Department of Defense and United States
9Coast Guard facilities have leveraged the energy efficiency
10programs of electrical corporations and gas corporations and have
11used turnkey contracts to facilitate energy efficiency upgrades
12while bundling energy and water efficiency, demand response,
13and distributed generation.

14(d) Additional energy efficiency incentives to assist the United
15States Department of Defense and the United States Coast Guard
16to perform energy efficiency projects will help in meeting the
17 state’s greenhouse gas reduction goals.

18

SEC. 2.  

Section 454.57 is added to the Public Utilities Code,
19to read:

20

454.57.  

(a) For the purposes of this section, the following
21terms have the following meanings:

22(1) “Military bases and facilities” are those establishments under
23the jurisdiction of the United States Department of Defense that
24are classified in Code 928110 of the North American Industry
25Classification System.

26(2) “United States Coast Guard facilities” are those facilities
27under the jurisdiction of the United States Coast Guard that are
28classified in Code 926120 of the North American Industry
29Classification System.

30(b) Military bases and facilities and United States Coast Guard
31facilities shall be eligible to calculate their energy efficiency
32savings by comparing the facilities’ existing energy usage, as a
33whole, with the facilities’ projected energy usage that would be
34achieved from the implementation of the energy efficiency
35measures.

36(c) Through an existing or new proceeding, the commission, in
37consultation with the Energy Commission, the United States
38Department of Defense, and the United States Coast Guard, shall
39encourage electrical corporations and gas corporations, using
40existing military contracting procedures or new partnerships with
P4    1the federal government, to expedite the implementation of energy
2efficiency measures and shall enable the achievement of additional
3energy goals, for example, demand response, self-generation, and
4energy storage, at military bases and facilities and United States
5Coast Guard facilities.

6(d) The commission shallbegin delete authorize a program for energy
7efficiency for the purposes of subdivision (b)end delete
begin insert approve financial
8incentives for energy efficiency upgrades at military bases and
9facilities and United States Coast Guard facilitiesend insert
through existing
10energy efficiency programs administered by electrical corporations
11and gas corporations.

12(e) To the extent that the commission finds that funds in addition
13to funds collected from ratepayers are needed to achieve energy
14efficiency saving goals in military bases and facilities and United
15States Coast Guard facilities, the commission, in consultation with
16the Energy Commission, the United States Department of Defense,
17and the United States Coast Guard, shall identify other potential
18sources of funding to supplement funds collected from ratepayers
19to achieve those savings goals.

20(f) This section shall remain in effect only until January 1, 2020,
21and as of that date is repealed, unless a later enacted statute, that
22is enacted before January 1, 2020, deletes or extends that date.

23

SEC. 3.  

No reimbursement is required by this act pursuant to
24Section 6 of Article XIII B of the California Constitution because
25the only costs that may be incurred by a local agency or school
26district will be incurred because this act creates a new crime or
27infraction, eliminates a crime or infraction, or changes the penalty
28for a crime or infraction, within the meaning of Section 17556 of
29the Government Code, or changes the definition of a crime within
30the meaning of Section 6 of Article XIII B of the California
31Constitution.



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