BILL NUMBER: AB 758 CHAPTERED
BILL TEXT
CHAPTER 470
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 10, 2009
PASSED THE ASSEMBLY SEPTEMBER 11, 2009
AMENDED IN SENATE SEPTEMBER 4, 2009
AMENDED IN SENATE SEPTEMBER 2, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JULY 14, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Members Skinner and Bass
(Coauthor: Assembly Member Torrico)
FEBRUARY 26, 2009
An act to add Section 25943 to the Public Resources Code, and to
add Sections 381.2 and 385.2 to the Public Utilities Code, relating
to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 758, Skinner. Energy: energy audit.
(1) Existing law requires the State Energy Resources Conservation
and Development Commission (Energy Commission), in its biennial
energy conservation report, to report on the progress made to
implement a statewide home energy rating program.
This bill would require the Energy Commission, by March 1, 2010,
to establish a regulatory proceeding to develop a comprehensive
program to achieve greater energy savings in the state's existing
residential and nonresidential building stock. In developing the
requirements, the Energy Commission would be required to coordinate
with specified entities and to consider certain factors. Before
adopting the requirements, the Energy Commission would be required to
consult with specified entities and to hold at least 3 public
hearings. The Energy Commission would be required to periodically
update the comprehensive program to improve or refine the program
requirements. The Energy Commission would be required to report on
the status of the program in the integrated energy policy report.
(2) Existing law requires the Public Utilities Commission (PUC) to
order certain electrical corporations to collect and spend certain
funds for public benefit programs, including cost-effective energy
efficiency and conservation programs.
The bill would require the PUC, by March 1, 2010, to open a new
proceeding or amend an existing proceeding to investigate the ability
of electrical corporations and gas corporations to provide energy
efficiency financing options to their customers to implement the
comprehensive program that would be developed by the Energy
Commission pursuant to this act. The bill would also require the PUC
to include an assessment of each electrical corporation's and each
gas corporation's implementation of that program in a specified
triennial report required under existing law.
(3) Existing law requires a local publicly owned electric utility
to establish annual targets for energy efficiency savings and demand
reduction for the next 10-year period and to provide to its customers
and to the Energy Commission an annual report on its energy
efficiency and demand reduction programs.
This bill would require a local publicly owned electric utility,
by a specified date, to be responsible for implementing an energy
efficiency program that recognizes the Legislature's intent to
encourage energy savings and greenhouse gas emission reductions in
existing residential and nonresidential buildings. A local publicly
owned electric utility would be required to include in the
above-referenced report its status in implementing the program.
Because a local publicly owned utility would be responsible for the
implementation of an energy efficiency program and the provision of
additional information in an annual report to its customers and the
Energy Commission on the implementation of the program, this bill
would increase the level of service provided by a local agency,
thereby imposing a state-mandated local program.
(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 no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature recognizes both of the following:
(1) The significant energy savings and greenhouse gas emission
reductions inherent in the state's existing residential and
nonresidential building stock.
(2) The need to establish a comprehensive energy efficiency
program to capture these reductions.
(b) The Legislature further recognizes that a comprehensive energy
efficiency program should include components necessary to ensure
meaningful and reliable energy assessments, cost-effective energy
efficiency improvements, public and private sector energy efficiency
financing options, public outreach and education, and green workforce
training.
SEC. 2. Section 25943 is added to the Public Resources Code, to
read:
25943. (a) (1) By March 1, 2010, the commission shall establish a
regulatory proceeding to develop and implement a comprehensive
program to achieve greater energy savings in California's existing
residential and nonresidential building stock. This program shall
comprise a complementary portfolio of techniques, applications, and
practices that will achieve greater energy efficiency in existing
residential and nonresidential structures that fall significantly
below the current standards in Title 24 of the California Code of
Regulations, as determined by the commission.
(2) The comprehensive program may include, but need not be limited
to, a broad range of energy assessments, building benchmarking,
energy rating, cost-effective energy efficiency improvements, public
and private sector energy efficiency financing options, public
outreach and education efforts, and green workforce training.
(b) To develop and implement the program specified in subdivision
(a), the commission shall do both of the following:
(1) Coordinate with the Public Utilities Commission and consult
with representatives from the Department of Real Estate, the
Department of Housing and Community Development, investor-owned and
publicly owned utilities, local governments, real estate licensees,
commercial and home builders, commercial property owners, small
businesses, mortgage lenders, financial institutions, home
appraisers, inspectors, energy rating organizations, consumer groups,
environmental and environmental justice groups, and other entities
the commission deems appropriate.
(2) Hold at least three public hearings in geographically diverse
locations throughout the state.
(c) In developing the requirements for the program specified in
subdivision (a), the commission shall consider all of the following:
(1) The amount of annual and peak energy savings, greenhouse gas
emission reductions, and projected customer utility bill savings that
will accrue from the program.
(2) The most cost-effective means and reasonable timeframes to
achieve the goals of the program.
(3) The various climatic zones within the state.
(4) An appropriate method to inform and educate the public about
the need for, benefits of, and environmental impacts of, the
comprehensive energy efficiency program.
(5) The most effective way to report the energy assessment results
and the corresponding energy efficiency improvements to the owner of
the residential or nonresidential building, including, among other
things, the following:
(A) Prioritizing the identified energy efficiency improvements.
(B) The payback period or cost-effectiveness of each improvement
identified.
(C) The various incentives, loans, grants, and rebates offered to
finance the improvements.
(D) Available financing options including all of the following:
(i) Mortgages or sales agreement components.
(ii) On-bill financing.
(iii) Contractual property tax assessments.
(iv) Home warranties.
(6) Existing statutory and regulatory requirements to achieve
energy efficiency savings and greenhouse gas emission reductions.
(7) A broad range of implementation approaches, including both
utility and nonutility administration of energy efficiency programs.
(8) Any other considerations deemed appropriate by the commission.
(d) The program developed pursuant to this section shall do all of
the following:
(1) Minimize the overall costs of establishing and implementing
the comprehensive energy efficiency program requirements.
(2) Ensure, for residential buildings, that the energy efficiency
assessments, ratings, or improvements do not unreasonably or
unnecessarily affect the home purchasing process or the ability of
individuals to rent housing. A transfer of property subject to the
program implemented pursuant to this section shall not be invalidated
solely because of the failure of a person to comply with a provision
of the program.
(3) Ensure, for nonresidential buildings, that the energy
improvements do not have an undue economic impact on California
businesses.
(4) Determine, for residential buildings, the appropriateness of
the Home Energy Rating System (HERS) program to support the goals of
this section and whether there are a sufficient number of
HERS-certified raters available to meet the program requirements.
(5) Determine, for nonresidential structures, the availability of
an appropriate cost-effective energy efficiency assessment system and
whether there are a sufficient number of certified raters or
auditors available to meet the program requirements.
(6) Coordinate with the California Workforce Investment Board, the
Employment Training Panel, the California Community Colleges, and
other entities to ensure a qualified, well-trained workforce is
available to implement the program requirements.
(7) Coordinate with, and avoid duplication of, existing
proceedings of the Public Utilities Commission and programs
administered by utilities.
(e) A home energy rating or energy assessment service does not
meet the requirements of this section unless the service has been
certified by the commission to be in compliance with the program
criteria developed pursuant to this section and is in conformity with
other applicable elements of the program.
(f) The commission shall periodically update the criteria and
adopt any revision that, in its judgment, is necessary to improve or
refine program requirements after receiving public input.
(g) Before implementing an element of the program developed
pursuant to subdivision (a) that requires the expansion of statutory
authority of the commission or the Public Utilities Commission, the
commission and the Public Utilities Commission shall obtain
legislative approval for the expansion of their authorities.
(h) The commission shall report on the status of the program in
the integrated energy policy report pursuant to Section 25302.
(i) The commission shall fund activities undertaken pursuant to
this section from the Federal Trust Fund consistent with the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or
other sources of nonstate funds available to the commission for the
purposes of this section.
(j) For purposes of this section, "energy assessment" means a
determination of an energy user's energy consumption level, relative
efficiency compared to other users, and opportunities to achieve
greater efficiency or improve energy resource utilization.
SEC. 3. Section 381.2 is added to the Public Utilities Code, to
read:
381.2. (a) By March 1, 2010, the commission, by opening a new
proceeding or amending an existing proceeding, shall investigate the
ability of electrical corporations and gas corporations to provide
various energy efficiency financing options to their customers for
the purposes of implementing the program developed pursuant to
Section 25943 of the Public Resources Code.
(b) In the report prepared pursuant to Section 384.2, the
commission shall include an assessment of each electrical corporation'
s and each gas corporation's implementation of the program developed
pursuant to Section 25943 of the Public Resources Code.
SEC. 4. Section 385.2 is added to the Public Utilities Code, to
read:
385.2. (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
(b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
(1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
(2) The net energy savings from energy efficiency improvements
installed pursuant to this section.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.