BILL NUMBER: SB 1037 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 23, 2005
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.
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 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 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.
SEC. 2. 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 454.5, to first
acquire all available energy efficiency and demand reduction
resources that are cost effective and feasible, as determined by the
commission.
SEC. 4.
SEC. 3. Section 454.6 is added to the Public Utilities
Code, to read:
454.6.
The commission shall require 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.
SEC. 4. Section 1002.3 is added to the Public Utilities
Code, to read:
1002.3.
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.
SEC. 5. 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. SEC. 6.
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.