BILL NUMBER: SB 1037 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 11, 2005
INTRODUCED BY Senator Kehoe
FEBRUARY 22, 2005
An act to repeal Section 25620.9 of the Public Resources
Code, relating to public interest energy research.
amend and repeal Section 399.4 of, and to add Sections 454.55, 454.6,
1002.3, and 9615 to, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1037, as amended, Kehoe. Public interest energy
research. Energy efficiency.
(1) The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission (Energy Commission) and requires it to
certify sufficient sites and related facilities that are required to
provide a supply of electricity sufficient to accommodate projected
demand for power statewide. Under that act, the Energy Commission
also administers existing law with respect to energy conservation and
renewable electricity generation sources.
Existing law authorizes the Public Utilities Commission to
regulate public utilities, including electrical and gas corporations.
Existing law requires the commission to review and adopt a
procurement plan for each electrical corporation. Under existing law,
a person is guilty of a crime for failing to comply with provisions
of the Public Utilities Act, or with an order or decision of the
commission.
This bill would require the commission to require an electrical
corporation, in implementing its procurement plan, to first acquire
all available energy efficiency and demand reduction resources that
are cost effective, as determined by the commission.
The bill would require the commission to require a gas
corporation, in procuring energy, to first acquire all available
energy efficiency and demand reduction resources that are cost
effective. The bill would require the commission, in consultation
with the Energy Commission, to establish savings targets based on an
evaluation of all achievable cost-effective savings potential.
The bill, by requiring the commission to impose new requirements
on electrical and gas corporations, the violation of which would be a
crime, would create new crimes, thereby imposing a
state‑mandated local program.
(2) Existing law relating to electrical restructuring imposes
certain requirements on local publicly owned electric utilities.
This bill would require each local publicly owned electric
utility, in procuring energy, to first acquire all available energy
efficiency and demand reduction resources that are cost effective.
The bill, by imposing new requirements on local publicly owned
electric utilities, would impose a state‑mandated local
program.
(3) Existing law requires the commission, in evaluating energy
efficiency investments under its existing statutory authorities, to
ensure that no energy efficiency funds are used to provide incentives
for the purchase of new energy-efficient refrigerators.
This bill would repeal that requirement.
(4)
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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
Existing law requires the State Energy Resources Conservation and
Development Commission (Energy Commission) to develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program. Existing law requires that the program include
a full range of research, development, and demonstration activities
that, as determined by the Energy Commission, are not adequately
provided for by competitive and regulated markets. Existing law
requires the Energy Commission to administer the program, as
specified.
Existing law requires the Energy Commission to designate a panel
of independent experts with special expertise in public interest
energy research, development, and demonstration programs to evaluate
projects under those programs, and to submit a preliminary and final
report, as specified, to the Governor and the Legislature, making
findings and recommendations for the implementation of this program.
Existing law would repeal these provisions on July 1, 2006.
This bill, instead, would repeal the provisions as of January 1,
2006.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25620.9 of the Public Resources Code is
repealed.
SECTION 1. Section 399.4 of the Public Utilities
Code , a s added by Section 4 of Chapter 1050
of the Statutes of 2000, is repealed.
399.4. (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
(2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
(b) The commission, in evaluating energy efficiency investments
under its existing statutory authorities, shall also ensure both of
the following:
(1) That local and regional interests, multifamily dwellings, and
energy service industry capabilities are incorporated into program
portfolio design and that local governments, community-based
organizations, and energy efficiency service providers are encouraged
to participate in program implementation where appropriate.
(2) That no energy efficiency funds are used to provide incentives
for the purchase of new energy-efficient refrigerators.
SEC. 2. Section 399.4 of the Public Utilities Code
, as added by Section 4 of Chapter 1051 of the Statutes
of 2000, is amended to read:
399.4. (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
(2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
(b) The commission, in evaluating energy efficiency investments
under its existing statutory authorities, shall also ensure
both of the following:
(1) That
that local and regional interests, multifamily dwellings,
and energy service industry capabilities are incorporated into
program portfolio design and that local governments, community-based
organizations, and energy efficiency service providers are encouraged
to participate in program implementation where appropriate.
(2) That no energy
efficiency funds are used to provide incentives for the purchase of
new energy-efficient refrigerators.
SEC. 3. Section 454.55 is added to the Public
Utilities Code , immediately following Section 454.5, to
read:
454.55. The commission shall require an electrical corporation,
in implementing its procurement plan pursuant to Section 454, to
first acquire all available energy efficiency and demand reduction
resources that are cost effective, as determined by the commission.
SEC. 4. Section 454.6 is added to the Public
Utilities Code , to read:
454.6. The commission shall require a gas corporation, in
procuring energy, to first acquire all available energy efficiency
and demand reduction resources that are cost effective. The
commission, in consultation with the State Energy Resources
Conservation and Development Commission, shall establish savings
targets based on an evaluation of all achievable cost-effective
savings potential.
SEC. 5. Section 1002.3 is added to the Public
Utilities Code , to read:
1002.3. It is the intent of the Legislature that all
cost-effective alternatives to transmission and distribution
facilities that meet the need for an efficient, reliable, affordable
supply of electricity, including demand-side alternatives such as
targeted energy efficiency, ultraclean distributed generation, and
other demand reduction resources be considered in electricity
transmission and distribution planning, and that planning for
transmission is conducted on a statewide, rather than a
project-by-project, basis.
SEC. 6. Section 9615 is added to the Public
Utilities Code , to read:
9615. Each local publicly owned electric utility, in procuring
energy, shall first acquire all available energy efficiency and
demand reduction resources that are cost effective.
SEC. 7.
No reimbursement is required by this act pursuant to Section 6 of
Article XIII B of the California Constitution for certain costs that
may be incurred by a local agency or school district because, in that
regard, this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.