BILL ANALYSIS �
SB 115
Page A
Date of Hearing: June 23, 2014
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
SB 115 (Hill) - As Amended: June 9, 2014
SENATE VOTE : (vote not relevant)
SUBJECT : Electric Program Investment Charge (EPIC)
SUMMARY : This bill would require the portfolio of projects
funded through the EPIC program to additionally include projects
pertaining to safety of the electrical grid. Specifically, this
bill :
Directs the California Energy Commission (CEC) to include, in
the eligible areas to receive funding through the EPIC program,
projects that will make advancements to the safety of the
electrical grid.
EXISTING LAW
a)Creates a fund in the State Treasury and authorizes the CEC to
administer moneys in this fund to fund research, development,
and demonstration projects that benefit electricity ratepayers
and lead to technological advancement and breakthroughs to
overcome barriers that prevent the achievement of California's
energy goals to make advancement on significant technological
challenges, including energy storage, renewable energy and its
integration into the electrical grid, energy efficiency,
integration of electric vehicles into the electrical grid, and
accurately forecasting the availability of renewable energy
for integration into the grid. (Public Resources Code 25711.5)
b)Authorizes the California Public Utilities Commission (PUC) to
allow an electrical corporation, gas corporation, heat
corporation or telephone corporation to include expenses for
research and development in rates. (Public Utilities Code 740)
c)Requires the PUC to consider, among other things, public and
employee safety when evaluating research, development, and
demonstration programs proposed by electrical and gas
corporations. (Public Utilities Code 740.1)
FISCAL EFFECT : Unknown
SB 115
Page B
COMMENTS :
1)Author's Statement. "California's electric ratepayers expect
that research funded through their electric rates supports
research and development projects that further the delivery of
safe, reliable, service at reasonable rates, with a commitment
to environmental enhancement and a healthy California economy.
Read narrowly, recent statutory changes and decisions of the
PUC have placed a high bar on the use of rates to fund
research to improve the safety of the electric grid-a position
that is inconsistent with the primacy safety has in state
policy. This bill clarifies that the CEC is to consider
funding safety research just as if considers funding renewable
energy research."
2)Electric Grid Safety already recognized in EPIC. In December
2011 the PUC ordered electrical corporations to collect funds
from ratepayers to fund research, development, and
demonstration in Decision 11-12-035. In a Phase 2 decision
(Decision 12-05-037), the PUC established purposes and
governance for these funds. In this decision the PUC stated in
its Findings of Fact:
"Demonstrating the potential to produce electricity
ratepayer benefits, defined as promoting greater
reliability, lower costs, and increased safety, should be a
mandatory and primary guiding principle for expenditure of
EPIC funds"
According to the CEC's website, research and development under
EPIC Energy Commission R&D under EPIC will help further
advancements including "a modern, flexible, technologically
advanced electricity grid that is safer, more reliable and
gives ratepayers the ability to better control energy use."<1>
Historically, the CEC has conducted a number of research
projects through EPIC's predecessor program (Public Interest
Energy Research program) related to safety, including but not
limited to projects to establish interconnection rules for
distributed generation facilities, cybersecurity, and to make
improvements to natural gas system infrastructure performance,
reliability and safety.
--------------------------
<1> http://www.energy.ca.gov/research/
SB 115
Page C
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083