BILL NUMBER: SB 1037 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 27, 2005
AMENDED IN SENATE APRIL 11, 2005
INTRODUCED BY Senator Kehoe
FEBRUARY 22, 2005
An act to 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. 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 The Public Utilities Act
requires the commission to review and adopt a procurement plan for
each electrical corporation. The act prohibits any electrical
corporation from beginning the construction of, among other things, a
line, plant, or system, or of any extension thereof, without having
first obtained from the commission a certificate that the present or
future public convenience and necessity require or will require that
construction. Under existing law, a person is guilty of a crime
for failing to comply with provisions of the Public
Utilities Act 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 and feasible , as determined by the
commission.
The bill would require the commission to require a
each gas corporation, in procuring energy
for long- term needs , to first acquire all
available energy efficiency and demand reduction resources that are
cost effective and feasible . 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 would require the commission, in considering an
application for a certificate of public convenience and necessity for
an electric transmission or distribution facility, to consider all
cost effective alternatives to transmission and distribution
facilities that meet the need for an efficient, reliable, and
affordable supply of electricity, including specified demand
reduction resources.
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 for long- term needs
, to first acquire all available energy efficiency and demand
reduction resources that are cost effective and feasible. The
bill would require each local publicly owned electric utility to
report annually to its customers its investment on energy efficiency
and demand reduction programs . 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 399.4 of the Public Utilities Code, as added by
Section 4 of Chapter 1050 of the Statutes of 2000, is repealed.
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 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.
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
454.5 , to first acquire all available energy
efficiency and demand reduction resources that are cost effective
and feasible , 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 each
gas corporation, in procuring energy for long-term needs ,
to first acquire all available energy efficiency and demand
reduction resources that are cost effective and feasible .
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. In considering an
application for a certificate for an electric transmission or
distribution facility pursuant to Section 1001, the commission shall
consider all cost effective alternatives to transmission and
distribution facilities that meet the need for an efficient,
reliable, and affordable supply of electricity, including, but not
limited to, demand-side alternatives such as targeted energy
efficiency, ultraclean distributed generation, as defined in Section
353.2, and other demand reduction resources.
SEC. 6. Section 9615 is added to the Public Utilities Code, to
read:
9615.
(a) Each local publicly owned electric
utility, in procuring energy for long-term needs , shall
first acquire all available energy efficiency and demand reduction
resources that are cost effective . and
feasible.
(b) Each local publicly owned electric utility shall report
annually to its customers its investment in energy efficiency and
demand reduction programs. A report shall contain a description of
programs, expenditures, and expected and actual energy savings
results.
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.