AB 802: Energy efficiency.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-10-08
(1)Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and prices. Existing law requires the Energy Commission to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. Existing law requires the Energy Commission to prepare an integrated energy policy report every 2 years and requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers certain criteria.
This bill would require the Energy Commission, in consultation with the Public Utilities Commission, to make all reasonable adjustments to its energy demand forecasts conducted pursuant to the above-described provisions to account for its findings of market conditions and existing baselines, and in making those adjustments, would authorize the commission to consider the results from specified programs.
The bill would require the Energy Commission to use the above-described assessments and forecasts relating to various aspects of the energy industry to develop and evaluate energy policies and programs.
(2)Existing law requires electric and gas utilities to maintain records of the energy consumption data of all nonresidential buildings to which they provide service and requires that this data be maintained, in a format compatible for uploading to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager, for at least the most recent 12 months. Existing law also requires, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, an electric or gas utility to upload all of the energy consumption data for the account specified for a building to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager in a manner that preserves the confidentiality of the customer. Existing law requires an owner or operator to disclose the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and rating to a prospective buyer, lessee of the entire building, or lender that would finance the entire building based on a schedule of compliance established by the Energy Commission.
This bill would revise and recast these provisions. The bill would require utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete months. Beginning no later than January 1, 2017, the bill would require each utility, upon the request and the written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, as defined, to deliver or provide aggregated energy usage data for a covered building to the owner, owners agent, operator, or to the owners account in the ENERGY STAR Portfolio Manager, subject to specified requirements. The bill would also authorize the commission to specify additional information to be delivered by utilities for certain purposes. The bill would delete the requirement of an owner or operator of a building to disclose the above-described information to a prospective buyer, lessee of the entire building, or lender that would finance the entire building. The bill would require the Energy Commission to adopt regulations providing for the delivery to the commission and public disclosure of benchmarking of energy use for covered buildings, as prescribed. The bill would authorize the Energy Commission to impose a civil fine, as provided, for a violation of these data submission requirements.
(3)Existing law requires the Energy Commission to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by September 1, 2016, to authorize electrical corporations and gas corporations to provide incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified, and would authorize electrical corporations and gas corporations to recover the reasonable costs of those programs in rates. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved through the authorized programs, unless determined otherwise, toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the estimated change in energy savings resulting from those programs.
(1)Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and prices. Existing law requires the Energy Commission to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. Existing law requires the Energy Commission to prepare an integrated energy policy report every 2 years and requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers certain criteria.
This bill would require the Energy Commission, in consultation with the Public Utilities Commission, to make all reasonable adjustments to its energy demand forecasts conducted pursuant to the above-described provisions to account for its findings of market conditions and existing baselines, and in making those adjustments, would authorize the commission to consider the results from specified programs.
The bill would require the Energy Commission to use the above-described assessments and forecasts relating to various aspects of the energy industry to develop and evaluate energy policies and programs.
(2)Existing law requires electric and gas utilities to maintain records of the energy consumption data of all nonresidential buildings to which they provide service and requires that this data be maintained, in a format compatible for uploading to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager, for at least the most recent 12 months. Existing law also requires, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, an electric or gas utility to upload all of the energy consumption data for the account specified for a building to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager in a manner that preserves the confidentiality of the customer. Existing law requires an owner or operator to disclose the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and rating to a prospective buyer, lessee of the entire building, or lender that would finance the entire building based on a schedule of compliance established by the Energy Commission.
This bill would revise and recast these provisions. The bill would require utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete months. Beginning no later than January 1, 2017, the bill would require each utility, upon the request and the written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, as defined, to deliver or provide aggregated energy usage data for a covered building to the owner, owners agent, operator, or to the owners account in the ENERGY STAR Portfolio Manager, subject to specified requirements. The bill would also authorize the commission to specify additional information to be delivered by utilities for certain purposes. The bill would delete the requirement of an owner or operator of a building to disclose the above-described information to a prospective buyer, lessee of the entire building, or lender that would finance the entire building. The bill would require the Energy Commission to adopt regulations providing for the delivery to the commission and public disclosure of benchmarking of energy use for covered buildings, as prescribed. The bill would authorize the Energy Commission to impose a civil fine, as provided, for a violation of these data submission requirements.
(3)Existing law requires the Energy Commission to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by September 1, 2016, to authorize electrical corporations and gas corporations to provide incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified, and would authorize electrical corporations and gas corporations to recover the reasonable costs of those programs in rates. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved through the authorized programs, unless determined otherwise, toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the estimated change in energy savings resulting from those programs.
(1)Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and prices. Existing law requires the Energy Commission to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. Existing law requires the Energy Commission to prepare an integrated energy policy report every 2 years and requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers certain criteria.
This bill would require the Energy Commission, in consultation with the Public Utilities Commission, to make all reasonable adjustments to its energy demand forecasts conducted pursuant to the above-described provisions to account for its findings of market conditions and existing baselines, and in making those adjustments, would authorize the commission to consider the results from specified programs.
The bill would require the Energy Commission to use the above-described assessments and forecasts relating to various aspects of the energy industry to develop and evaluate energy policies and programs.
(2)Existing law requires electric and gas utilities to maintain records of the energy consumption data of all nonresidential buildings to which they provide service and requires that this data be maintained, in a format compatible for uploading to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager, for at least the most recent 12 months. Existing law also requires, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, an electric or gas utility to upload all of the energy consumption data for the account specified for a building to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager in a manner that preserves the confidentiality of the customer. Existing law requires an owner or operator to disclose the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and rating to a prospective buyer, lessee of the entire building, or lender that would finance the entire building based on a schedule of compliance established by the Energy Commission.
This bill would revise and recast these provisions. The bill would require utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete months. Beginning no later than January 1, 2017, the bill would require each utility, upon the request and the written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, as defined, to deliver or provide aggregated energy usage data for a covered building to the owner, owners agent, operator, or to the owners account in the ENERGY STAR Portfolio Manager, subject to specified requirements. The bill would also authorize the commission to specify additional information to be delivered by utilities for certain purposes. The bill would delete the requirement of an owner or operator of a building to disclose the above-described information to a prospective buyer, lessee of the entire building, or lender that would finance the entire building. The bill would require the Energy Commission to adopt regulations providing for the delivery to the commission and public disclosure of benchmarking results of energy use for covered buildings, as prescribed. The bill would authorize the Energy Commission to impose a civil fine, as provided, for a violation of these data submission requirements.
(3)Existing law requires the Energy Commission to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by September 1, 2016, to authorize electrical corporations and gas corporations to provide incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified, and would authorize electrical corporations and gas corporations to recover the reasonable costs of those programs in rates. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved through the authorized programs, unless determined otherwise, toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the estimated change in energy savings resulting from the program.
(1)Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and prices. Existing law requires the Energy Commission to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. Existing law requires the Energy Commission to prepare an integrated energy policy report every 2 years and requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers certain criteria.
This bill would require the Energy Commission, in consultation with the Public Utilities Commission, to make all reasonable adjustments to its energy demand forecasts conducted pursuant to the above-described provisions to account for its findings of market conditions and existing baselines, and in making those adjustments, would authorize the commission to consider the results from specified programs.
The bill would require the Energy Commission to use the above-described assessments and forecasts relating to various aspects of the energy industry to develop and evaluate energy policies and programs.
(2)Existing law requires electric and gas utilities to maintain records of the energy consumption data of all nonresidential buildings to which they provide service and requires that this data be maintained, in a format compatible for uploading to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager, for at least the most recent 12 months. Existing law also requires, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, an electric or gas utility to upload all of the energy consumption data for the account specified for a building to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager in a manner that preserves the confidentiality of the customer. Existing law requires an owner or operator to disclose the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and rating to a prospective buyer, lessee of the entire building, or lender that would finance the entire building based on a schedule of compliance established by the Energy Commission.
This bill would revise and recast these provisions. The bill would require utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete months. Beginning no later than January 1, 2017, the bill would require each utility, upon the request and the written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, as defined, to deliver or provide aggregated energy usage data for a covered building to the owner, owners agent, operator, or to the owners account in the ENERGY STAR Portfolio Manager, subject to specified requirements. The bill would also authorize the commission to specify additional information to be delivered by utilities for certain purposes. The bill would delete the requirement of an owner or operator of a building to disclose the above-described information to a prospective buyer, lessee of the entire building, or lender that would finance the entire building. The bill would require the Energy Commission to adopt regulations providing for the delivery to the commission and public disclosure of benchmarking results for covered buildings, as prescribed. The bill would authorize the Energy Commission to impose a civil fine, as provided, for a violation of these data submission requirements.
Existing
(3)Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) Energy Commission to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by July September 1, 2016, to authorize electrical corporations and gas corporations to recover in rates the reasonable costs of programs providing provide incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified. specified, and would authorize electrical corporations and gas corporations to recover the reasonable costs of those programs in rates. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved through the authorized programs, unless determined otherwise, toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the estimated change in energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings. savings resulting from the program.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by July 1, 2016, to authorize electrical corporations and gas corporations to recover in rates the reasonable costs of programs providing incentives or rebates or both incentives and rebates incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by July 1, 2016, to authorize electrical corporations and gas corporations to recover in rates the reasonable costs of programs providing incentives or rebates or both incentives and rebates to their customers to increase the energy efficiency of existing buildings, as specified. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to 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 by the Energy Commission.
This bill would require the PUC, by July 1, 2016, to authorize electrical corporations and gas corporations to recover in rates the reasonable costs of programs providing incentives or rebates or both incentives and rebates to their customers to increase the energy efficiency of existing buildings, as specified. The bill would require the PUC to authorize electrical corporations and gas corporations to count all energy savings achieved toward overall energy efficiency goals or targets established by the PUC. The bill would authorize the PUC to adjust the energy efficiency goals or targets of electrical corporations and gas corporations to reflect the energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings.
Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), to identify all potentially achievable cost-effective electricity efficiency savings, and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan. Existing law requires the PUC, in consultation with the Energy Commission, to identify all potentially achievable cost-effective natural gas efficiency savings and to establish efficiency targets for gas corporations to achieve, and requires that a gas corporation first meet, its unmet resource needs through all available gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
This bill would require the PUC, in evaluating the cost-effectiveness of those efficiency savings, to consider the total energy savings to be the difference between the energy usage after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates and the energy usage without that energy efficiency measure.
Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), to identify all potentially achievable cost-effective electricity efficiency savings, and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan. Existing law requires the PUC, in consultation with the Energy Commission, to identify all potentially achievable cost-effective natural gas efficiency savings and to establish efficiency targets for gas corporations to achieve, and requires that a gas corporation first meet, its unmet resource needs through all available gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
This bill would require the PUC, in evaluating the cost-effectiveness of those efficiency savings, to consider the total energy savings to be the difference between the energy usage after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates and the energy usage without that energy efficiency measure.
Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), to identify all potentially achievable cost-effective electricity efficiency savings, and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan. Existing law requires the PUC, in consultation with the Energy Commission, to identify all potentially achievable cost-effective natural gas efficiency savings and to establish efficiency targets for gas corporations to achieve, and requires that a gas corporation first meet, its unmet resource needs through all available gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
This bill would require the PUC, in evaluating the cost-effectiveness of those efficiency savings, to consider the total energy savings to be the difference between the energy usage after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates and the energy usage without that energy efficiency measure.
Existing law requires the State Energy Resources Conservation and Development Commission, by March 1, 2010, to establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in Californias existing residential and nonresidential building stock, and permits the program to include, but 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.
This bill would delete the requirement that the commission develop and implement the program through a regulatory proceeding.
Existing law requires the State Energy Resources Conservation and Development Commission, by March 1, 2010, to establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in Californias existing residential and nonresidential building stock, and permits the program to include, but 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.
This bill would delete the requirement that the commission develop and implement the program through a regulatory proceeding.
It is the intent of the Legislature to support strategies that enhance energy efficiency. Building owners should have access to their buildings energy usage information, which enables understanding of a buildings energy usage for improved building management and investment decisions. It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission create a benchmarking and disclosure program through which building owners of commercial and multifamily buildings above 50,000 square feet gross floor area will better understand their energy consumption through standardized energy use metrics.
SEC. 2.Section 25301 of the Public Resources Code is amended to read:25301.(a)At least every two years, the commission shall conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The commission shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. To perform these assessments and forecasts, the commission may require submission of demand forecasts, resource plans, market assessments, related outlooks, individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission from electric and natural gas utilities, transportation fuel and technology suppliers, and other market participants. These assessments and forecasts shall be done in consultation with the appropriate state and federal agencies including, but not limited to, the Public Utilities Commission, the Office of Ratepayer Advocates, the Air Resources Board, the Electricity Oversight Board, the Independent System Operator, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, the Department of Transportation, and the Department of Motor Vehicles. The commission shall maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
(b)In developing the assessments and forecasts prepared pursuant to subdivision (a), the commission shall do all of the following:
(1)Provide information about the performance of energy industries.
(2)Develop and maintain the analytical capability sufficient to answer inquiries about energy issues from government, market participants, and the public.
(3)Analyze, develop, and evaluate energy policies and programs.
(4)Provide an analytical foundation for regulatory and policy decisionmaking.
(5)Facilitate efficient and reliable energy markets.
SEC. 3.Section 25303 of the Public Resources Code is amended to read:25303.(a)The commission shall conduct electricity and natural gas forecasting and assessment activities to meet the requirements of paragraph (1) of subdivision (a) of Section 25302, including, but not limited to, all of the following:
(1)Assessment of trends in electricity and natural gas supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas under current market structures and expected market conditions.
(2)Forecasts of statewide and regional electricity and natural gas demand including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas, the report shall include an evaluation of average conditions, as well as best and worst case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas demand.
(3)Evaluation of the adequacy of electricity and natural gas supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas infrastructure and systems, including, but not limited to, natural gas production capability both in and out of state, natural gas interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4)Evaluation of potential impacts of electricity and natural gas supply, demand, and infrastructure and resource additions on the electricity and natural gas systems, public health and safety, the economy, resources, and the environment.
(5)Evaluation of the potential impacts of electricity and natural gas load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas systems.
(6)Evaluation of whether electricity and natural gas markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to improve performance.
(7)Identification of impending or potential problems or uncertainties in the electricity and natural gas markets, potential options and solutions, and recommendations.
(8)(A)Compilation and assessment of existing scientific studies that have been performed by persons or entities with expertise and qualifications in the subject of the studies to determine the potential vulnerability to a major disruption due to aging or a major seismic event of large baseload generation facilities, of 1,700 megawatts or greater.
(B)The assessment specified in subparagraph (A) shall include an analysis of the impact of a major disruption on system reliability, public safety, and the economy.
(C)The commission may work with other public entities and public agencies, including, but not limited to, the California Independent System Operator, the Public Utilities Commission, the Department of Conservation, and the Seismic Safety Commission as necessary, to gather and analyze the information required by this paragraph.
(D)Upon completion and publication of the initial review of the information required pursuant to this paragraph, the commission shall perform subsequent updates as new data or new understanding of potential seismic hazards emerge.
(b)Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1)The environmental performance of the electric generation facilities of the state, to include all of the following:
(A)Generation facility efficiency.
(B)Air emission control technologies in use in operating plants.
(C)The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2)The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c)In the absence of a long-term nuclear waste storage facility, the commission shall assess the potential state and local costs and impacts associated with accumulating waste at Californias nuclear powerplants. The commission shall further assess other key policy and planning issues that will affect the future role of nuclear powerplants in the state. The commissions assessment shall be adopted on or before November 1, 2008, and included in the 2008 energy policy review adopted pursuant to subdivision (d) of Section 25302.
(d)The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) and (d) of Section 381.2 of the Public Utilities Code.
SEC. 4.Section 25402.10 of the Public Resources Code is repealed.SEC. 5.Section 25402.10 is added to the Public Resources Code, to read:25402.10.(a)For the purposes of this section, the following terms have the following meanings:
(1)Benchmark means to obtain information on the energy use in an entire building for a specific period to enable that usage to be tracked or compared against other buildings.
(2)Covered building for purposes of this section means either or both of the following:
(A)Any building with no residential utility accounts.
(B)Any building with five or more active utility accounts, residential or nonresidential.
(3)Energy means electricity, natural gas, steam, or fuel oil sold by a utility to a customer for end uses addressed by the ENERGY STAR Portfolio Manager system.
(4)ENERGY STAR Portfolio Manager means the tool developed and maintained by the United States Environmental Protection Agency to track and assess the energy performance of buildings.
(b)On and after January 1, 2016, each utility shall maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete calendar months.
(c)(1)Subject to the requirements of paragraph (2), beginning no later than January 1, 2017, each utility shall, upon the request and written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, deliver or otherwise provide aggregated energy usage data for a covered building to the owner, owners agent, building operator, or to the owners account in the ENERGY STAR Portfolio Manager. The commission may specify additional information to be delivered by utilities to enable building owners to complete benchmarking of the energy use in their buildings and in other systems or formats for information delivery and automation.
(2)The delivery of information by utilities pursuant to this section shall be subject to the following requirements:
(A)For covered buildings with three or more active utility accounts, each utility shall deliver information showing the aggregated energy usage data of all utility customers in the same building for each of the 12 prior months. Notwithstanding any other law, energy usage data aggregated in this manner shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery to the owner, owners agent, or operator of a building. The building owner and utility shall not have any liability for any use or disclosure of aggregated energy usage data delivered as required by this section.
(B)For covered buildings not subject to subparagraph (A), each utility shall deliver the information showing the aggregated energy usage data of all utility customers in the same building for each of the prior 12 months if the accountholder provides written or electronic consent for the delivery of the accountholders energy usage data to the owner, owners agent, operator, or utility.
(C)Each utility shall deliver, upload, or otherwise provide aggregated energy usage data within four weeks of receiving a request from an owner, owners agent, or operator of a covered building.
(D)Each utility shall make available the covered building energy usage data aggregated at a monthly level unless otherwise specified by the commission.
(E)The building owner and utility shall not have any liability for any use or disclosure by others of usage information delivered as required by this section.
(d)The commission shall adopt regulations providing for the delivery to the commission and public disclosure of benchmarking of energy use for covered buildings, as follows:
(1)This subdivision shall not require the owner of a building with 16 or fewer residential utility accounts to collect or deliver energy usage information to the commission.
(2)The commission may do, but is not limited to doing, all of the following in regulations adopted pursuant to this subdivision:
(A)Identify and provide for the collection of the energy usage data for the calculation of benchmarking of energy use.
(B)Identify and provide for the collection of the covered building characteristic information deemed necessary by the commission for the calculation of benchmarking of energy use.
(C)Specify the manner in which certain benchmarking of energy use shall be publicly disclosed.
(D)Determine which covered buildings, in addition to those described in paragraph (1), are not subject to the public disclosure requirement.
(E)Set a schedule to implement the requirements for public disclosure adopted by the commission.
(F)Determine if compliance with a local or county benchmarking program fulfills the commissions requirements adopted pursuant to this subdivision.
(G)Identify categories of information it receives pursuant to this section that are protected from release under either the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(3)The commission shall determine who will deliver the energy usage data and related information for any covered building to the commission.
(e)The commission may ensure timely and accurate compliance with the data submission requirements of this section by using the enforcement measures identified in Section 25321. An owner of a covered building, or its agents or operators, shall not be liable for any noncompliance due to the failure of a utility to provide the information required for compliance.
(f)For buildings that are not covered buildings, and for customer information that is not aggregated pursuant to subparagraph (A) of paragraph (2) of subdivision (c), the commission may adopt regulations prescribing how utilities shall either obtain the customers permission or determine that a building owner has obtained the customers permission, for the owner to receive aggregated energy usage data or, where applicable, individual customer usage information, including by use of electronic authorization and in a lease agreement between the owner and the customer.
(g)The reasonable costs of an electrical or gas corporation in delivering electrical or gas usage data pursuant to this section or other information as required under state or federal law or by an order of the commission shall be recoverable in rates evaluated and approved by the Public Utilities Commission.
(h)The reasonable costs of local publicly owned electric utilities in disclosing electrical usage data pursuant to this section may be considered cost-effective demand-side management services to promote energy efficiency and energy conservation and thereby reimbursable by their general fund.
(i)Nothing in this section shall prevent a city or county from establishing its own benchmarking program requiring collection, delivery, and disclosure of building information.
SEC. 6.Section 381.2 of the Public Utilities Code is amended to read:381.2.(a)The commission 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)Recognizing the already underway 2015 commission work to adopt efficiency potential and goals, the Energy Commission work on its 2015 energy demand forecast, and the need to determine how to incorporate meter-based performance into determinations of goals, portfolio cost-effectiveness, and authorized budgets, the commission, in a separate or existing proceeding, shall, by September 1, 2016, authorize electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations, as well as operational, behavioral, and retrocommissioning activities reasonably expected to produce multiyear savings. Electrical corporations and gas corporations shall be permitted to recover in rates the reasonable costs of these programs. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved through the authorized programs created by this subdivision, unless determined otherwise, toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d).
(c)Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) for high opportunity projects or programs. The commission shall provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision (b).
(d)In furtherance of subdivision (b), the commission, in consultation with the Energy Commission, shall consider all of the following:
(1)The results of any interagency baseline assessment.
(2)Any available results from investor-owned utility baseline pilot studies ordered in D.14-10-046.
(3)Information necessary to ensure consistency with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(e)The commission may direct electrical corporations and gas corporations to make filings that are necessary to ensure coordination with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(f)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
SEC. 7.Section 384.2 of the Public Utilities Code is amended and renumbered to read:913.7.The commission shall submit a report to the Legislature by July 15, 2009, and triennially thereafter, on the energy efficiency and conservation programs it oversees. The report shall include information regarding authorized utility budgets and expenditures and projected and actual energy savings over the program cycle.
SEC. 8.Section 913.8 is added to the Public Resources Code, to read:913.8.In the report prepared pursuant Section 913.7, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
It is the intent of the Legislature to support strategies that enhance energy efficiency. Building owners should have access to their buildings energy usage information, which enables understanding of a buildings energy usage for improved building management and investment decisions. It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission create a benchmarking and disclosure program through which building owners of commercial and multifamily buildings above 50,000 square feet gross floor area will better understand their energy consumption through standardized energy use metrics.
SEC. 2.Section 25301 of the Public Resources Code is amended to read:25301.(a)At least every two years, the commission shall conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The commission shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. To perform these assessments and forecasts, the commission may require submission of demand forecasts, resource plans, market assessments, related outlooks, individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission from electric and natural gas utilities, transportation fuel and technology suppliers, and other market participants. These assessments and forecasts shall be done in consultation with the appropriate state and federal agencies including, but not limited to, the Public Utilities Commission, the Office of Ratepayer Advocates, the Air Resources Board, the Electricity Oversight Board, the Independent System Operator, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, the Department of Transportation, and the Department of Motor Vehicles. The commission shall maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
(b)In developing the assessments and forecasts prepared pursuant to subdivision (a), the commission shall do all of the following:
(1)Provide information about the performance of energy industries.
(2)Develop and maintain the analytical capability sufficient to answer inquiries about energy issues from government, market participants, and the public.
(3)Analyze, develop, and evaluate energy policies and programs.
(4)Provide an analytical foundation for regulatory and policy decisionmaking.
(5)Facilitate efficient and reliable energy markets.
SEC. 3.Section 25303 of the Public Resources Code is amended to read:25303.(a)The commission shall conduct electricity and natural gas forecasting and assessment activities to meet the requirements of paragraph (1) of subdivision (a) of Section 25302, including, but not limited to, all of the following:
(1)Assessment of trends in electricity and natural gas supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas under current market structures and expected market conditions.
(2)Forecasts of statewide and regional electricity and natural gas demand including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas, the report shall include an evaluation of average conditions, as well as best and worst case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas demand.
(3)Evaluation of the adequacy of electricity and natural gas supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas infrastructure and systems, including, but not limited to, natural gas production capability both in and out of state, natural gas interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4)Evaluation of potential impacts of electricity and natural gas supply, demand, and infrastructure and resource additions on the electricity and natural gas systems, public health and safety, the economy, resources, and the environment.
(5)Evaluation of the potential impacts of electricity and natural gas load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas systems.
(6)Evaluation of whether electricity and natural gas markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to improve performance.
(7)Identification of impending or potential problems or uncertainties in the electricity and natural gas markets, potential options and solutions, and recommendations.
(8)(A)Compilation and assessment of existing scientific studies that have been performed by persons or entities with expertise and qualifications in the subject of the studies to determine the potential vulnerability to a major disruption due to aging or a major seismic event of large baseload generation facilities, of 1,700 megawatts or greater.
(B)The assessment specified in subparagraph (A) shall include an analysis of the impact of a major disruption on system reliability, public safety, and the economy.
(C)The commission may work with other public entities and public agencies, including, but not limited to, the California Independent System Operator, the Public Utilities Commission, the Department of Conservation, and the Seismic Safety Commission as necessary, to gather and analyze the information required by this paragraph.
(D)Upon completion and publication of the initial review of the information required pursuant to this paragraph, the commission shall perform subsequent updates as new data or new understanding of potential seismic hazards emerge.
(b)Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1)The environmental performance of the electric generation facilities of the state, to include all of the following:
(A)Generation facility efficiency.
(B)Air emission control technologies in use in operating plants.
(C)The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2)The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c)In the absence of a long-term nuclear waste storage facility, the commission shall assess the potential state and local costs and impacts associated with accumulating waste at Californias nuclear powerplants. The commission shall further assess other key policy and planning issues that will affect the future role of nuclear powerplants in the state. The commissions assessment shall be adopted on or before November 1, 2008, and included in the 2008 energy policy review adopted pursuant to subdivision (d) of Section 25302.
(d)The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) and (d) of Section 381.2 of the Public Utilities Code.
SEC. 4.Section 25402.10 of the Public Resources Code is repealed.SEC. 5.Section 25402.10 is added to the Public Resources Code, to read:25402.10.(a)For the purposes of this section, the following terms have the following meanings:
(1)Benchmark means to obtain information on the energy use in an entire building for a specific period to enable that usage to be tracked or compared against other buildings.
(2)Covered building for purposes of this section means either or both of the following:
(A)Any building with no residential utility accounts.
(B)Any building with five or more active utility accounts, residential or nonresidential.
(3)Energy means electricity, natural gas, steam, or fuel oil sold by a utility to a customer for end uses addressed by the ENERGY STAR Portfolio Manager system.
(4)ENERGY STAR Portfolio Manager means the tool developed and maintained by the United States Environmental Protection Agency to track and assess the energy performance of buildings.
(b)On and after January 1, 2016, each utility shall maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete calendar months.
(c)(1)Subject to the requirements of paragraph (2), beginning no later than January 1, 2017, each utility shall, upon the request and written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, deliver or otherwise provide aggregated energy usage data for a covered building to the owner, owners agent, building operator, or to the owners account in the ENERGY STAR Portfolio Manager. The commission may specify additional information to be delivered by utilities to enable building owners to complete benchmarking of the energy use in their buildings and in other systems or formats for information delivery and automation.
(2)The delivery of information by utilities pursuant to this section shall be subject to the following requirements:
(A)For covered buildings with three or more active utility accounts, each utility shall deliver information showing the aggregated energy usage data of all utility customers in the same building for each of the 12 prior months. Notwithstanding any other law, energy usage data aggregated in this manner shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery to the owner, owners agent, or operator of a building. The building owner and utility shall not have any liability for any use or disclosure of aggregated energy usage data delivered as required by this section.
(B)For covered buildings not subject to subparagraph (A), each utility shall deliver the information showing the aggregated energy usage data of all utility customers in the same building for each of the prior 12 months if the accountholder provides written or electronic consent for the delivery of the accountholders energy usage data to the owner, owners agent, operator, or utility.
(C)Each utility shall deliver, upload, or otherwise provide aggregated energy usage data within four weeks of receiving a request from an owner, owners agent, or operator of a covered building.
(D)Each utility shall make available the covered building energy usage data aggregated at a monthly level unless otherwise specified by the commission.
(E)The building owner and utility shall not have any liability for any use or disclosure by others of usage information delivered as required by this section.
(d)The commission shall adopt regulations providing for the delivery to the commission and public disclosure of benchmarking of energy use for covered buildings, as follows:
(1)This subdivision shall not require the owner of a building with 16 or fewer residential utility accounts to collect or deliver energy usage information to the commission.
(2)The commission may do, but is not limited to doing, all of the following in regulations adopted pursuant to this subdivision:
(A)Identify and provide for the collection of the energy usage data for the calculation of benchmarking of energy use.
(B)Identify and provide for the collection of the covered building characteristic information deemed necessary by the commission for the calculation of benchmarking of energy use.
(C)Specify the manner in which certain benchmarking of energy use shall be publicly disclosed.
(D)Determine which covered buildings, in addition to those described in paragraph (1), are not subject to the public disclosure requirement.
(E)Set a schedule to implement the requirements for public disclosure adopted by the commission.
(F)Determine if compliance with a local or county benchmarking program fulfills the commissions requirements adopted pursuant to this subdivision.
(G)Identify categories of information it receives pursuant to this section that are protected from release under either the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(3)The commission shall determine who will deliver the energy usage data and related information for any covered building to the commission.
(e)The commission may ensure timely and accurate compliance with the data submission requirements of this section by using the enforcement measures identified in Section 25321. An owner of a covered building, or its agents or operators, shall not be liable for any noncompliance due to the failure of a utility to provide the information required for compliance.
(f)For buildings that are not covered buildings, and for customer information that is not aggregated pursuant to subparagraph (A) of paragraph (2) of subdivision (c), the commission may adopt regulations prescribing how utilities shall either obtain the customers permission or determine that a building owner has obtained the customers permission, for the owner to receive aggregated energy usage data or, where applicable, individual customer usage information, including by use of electronic authorization and in a lease agreement between the owner and the customer.
(g)The reasonable costs of an electrical or gas corporation in delivering electrical or gas usage data pursuant to this section or other information as required under state or federal law or by an order of the commission shall be recoverable in rates evaluated and approved by the Public Utilities Commission.
(h)The reasonable costs of local publicly owned electric utilities in disclosing electrical usage data pursuant to this section may be considered cost-effective demand-side management services to promote energy efficiency and energy conservation and thereby reimbursable by their general fund.
(i)Nothing in this section shall prevent a city or county from establishing its own benchmarking program requiring collection, delivery, and disclosure of building information.
SEC. 6.Section 381.2 of the Public Utilities Code is amended to read:381.2.(a)The commission 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)Recognizing the already underway 2015 commission work to adopt efficiency potential and goals, the Energy Commission work on its 2015 energy demand forecast, and the need to determine how to incorporate meter-based performance into determinations of goals, portfolio cost-effectiveness, and authorized budgets, the commission, in a separate or existing proceeding, shall, by September 1, 2016, authorize electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations, as well as operational, behavioral, and retrocommissioning activities reasonably expected to produce multiyear savings. Electrical corporations and gas corporations shall be permitted to recover in rates the reasonable costs of these programs. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved through the authorized programs created by this subdivision, unless determined otherwise, toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d).
(c)Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) for high opportunity projects or programs. The commission shall provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision (b).
(d)In furtherance of subdivision (b), the commission, in consultation with the Energy Commission, shall consider all of the following:
(1)The results of any interagency baseline assessment.
(2)Any available results from investor-owned utility baseline pilot studies ordered in D.14-10-046.
(3)Information necessary to ensure consistency with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(e)The commission may direct electrical corporations and gas corporations to make filings that are necessary to ensure coordination with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(f)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
SEC. 7.Section 384.2 of the Public Utilities Code is amended and renumbered to read:913.7.The commission shall submit a report to the Legislature by July 15, 2009, and triennially thereafter, on the energy efficiency and conservation programs it oversees. The report shall include information regarding authorized utility budgets and expenditures and projected and actual energy savings over the program cycle.
SEC. 8.Section 913.8 is added to the Public Resources Code, to read:913.8.In the report prepared pursuant Section 913.7, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
It is the intent of the Legislature to support strategies that enhance energy efficiency. Building owners should have access to their buildings energy usage information, which enables understanding of a buildings energy usage for improved building management and investment decisions. It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission create a benchmarking and disclosure program through which building owners of commercial and multifamily buildings above 50,000 square feet gross floor area will better understand their energy consumption through standardized energy use metrics.
SEC. 2.Section 25301 of the Public Resources Code is amended to read:25301.(a)At least every two years, the commission shall conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The commission shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. To perform these assessments and forecasts, the commission may require submission of demand forecasts, resource plans, market assessments, related outlooks, individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission from electric and natural gas utilities, transportation fuel and technology suppliers, and other market participants. These assessments and forecasts shall be done in consultation with the appropriate state and federal agencies including, but not limited to, the Public Utilities Commission, the Office of Ratepayer Advocates, the Air Resources Board, the Electricity Oversight Board, the Independent System Operator, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, the Department of Transportation, and the Department of Motor Vehicles. The commission shall maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
(b)In developing the assessments and forecasts prepared pursuant to subdivision (a), the commission shall do all of the following:
(1)Provide information about the performance of energy industries.
(2)Develop and maintain the analytical capability sufficient to answer inquiries about energy issues from government, market participants, and the public.
(3)Analyze, develop, and evaluate energy policies and programs.
(4)Provide an analytical foundation for regulatory and policy decisionmaking.
(5)Facilitate efficient and reliable energy markets.
SEC. 3.Section 25303 of the Public Resources Code is amended to read:25303.(a)The commission shall conduct electricity and natural gas forecasting and assessment activities to meet the requirements of paragraph (1) of subdivision (a) of Section 25302, including, but not limited to, all of the following:
(1)Assessment of trends in electricity and natural gas supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas under current market structures and expected market conditions.
(2)Forecasts of statewide and regional electricity and natural gas demand including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas, the report shall include an evaluation of average conditions, as well as best and worst case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas demand.
(3)Evaluation of the adequacy of electricity and natural gas supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas infrastructure and systems, including, but not limited to, natural gas production capability both in and out of state, natural gas interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4)Evaluation of potential impacts of electricity and natural gas supply, demand, and infrastructure and resource additions on the electricity and natural gas systems, public health and safety, the economy, resources, and the environment.
(5)Evaluation of the potential impacts of electricity and natural gas load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas systems.
(6)Evaluation of whether electricity and natural gas markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to improve performance.
(7)Identification of impending or potential problems or uncertainties in the electricity and natural gas markets, potential options and solutions, and recommendations.
(8)(A)Compilation and assessment of existing scientific studies that have been performed by persons or entities with expertise and qualifications in the subject of the studies to determine the potential vulnerability to a major disruption due to aging or a major seismic event of large baseload generation facilities, of 1,700 megawatts or greater.
(B)The assessment specified in subparagraph (A) shall include an analysis of the impact of a major disruption on system reliability, public safety, and the economy.
(C)The commission may work with other public entities and public agencies, including, but not limited to, the California Independent System Operator, the Public Utilities Commission, the Department of Conservation, and the Seismic Safety Commission as necessary, to gather and analyze the information required by this paragraph.
(D)Upon completion and publication of the initial review of the information required pursuant to this paragraph, the commission shall perform subsequent updates as new data or new understanding of potential seismic hazards emerge.
(b)Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1)The environmental performance of the electric generation facilities of the state, to include all of the following:
(A)Generation facility efficiency.
(B)Air emission control technologies in use in operating plants.
(C)The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2)The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c)In the absence of a long-term nuclear waste storage facility, the commission shall assess the potential state and local costs and impacts associated with accumulating waste at Californias nuclear powerplants. The commission shall further assess other key policy and planning issues that will affect the future role of nuclear powerplants in the state. The commissions assessment shall be adopted on or before November 1, 2008, and included in the 2008 energy policy review adopted pursuant to subdivision (d) of Section 25302.
(d)The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) and (d) of Section 381.2 of the Public Utilities Code.
SEC. 4.Section 25402.10 of the Public Resources Code is repealed.SEC. 5.Section 25402.10 is added to the Public Resources Code, to read:25402.10.(a)For the purposes of this section, the following terms have the following meanings:
(1)Benchmark means to obtain information on the energy use in an entire building for a specific period to enable that usage to be tracked or compared against other buildings.
(2)Covered building for purposes of this section means either or both of the following:
(A)Any building with no residential utility accounts.
(B)Any building with five or more active utility accounts, residential or nonresidential.
(3)Energy means electricity, natural gas, steam, or fuel oil sold by a utility to a customer for end uses addressed by the ENERGY STAR Portfolio Manager system.
(4)ENERGY STAR Portfolio Manager means the tool developed and maintained by the United States Environmental Protection Agency to track and assess the energy performance of buildings.
(b)On and after January 1, 2016, each utility shall maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete calendar months.
(c)(1)Subject to the requirements of paragraph (2), beginning no later than January 1, 2017, each utility shall, upon the request and written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, deliver or otherwise provide aggregated energy usage data for a covered building to the owner, owners agent, building operator, or to the owners account in the ENERGY STAR Portfolio Manager. The commission may specify additional information to be delivered by utilities to enable building owners to complete benchmarking of the energy use in their buildings and in other systems or formats for information delivery and automation.
(2)The delivery of information by utilities pursuant to this section shall be subject to the following requirements:
(A)For covered buildings with three or more active utility accounts, each utility shall deliver information showing the aggregated energy usage data of all utility customers in the same building for each of the 12 prior months. Notwithstanding any other law, energy usage data aggregated in this manner shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery to the owner, owners agent, or operator of a building. The building owner and utility shall not have any liability for any use or disclosure of aggregated energy usage information data delivered as required by this section.
(B)For covered buildings not subject to subparagraph (A), each utility shall deliver the information showing the aggregated energy usage data of all utility customers in the same building for each of the prior 12 months if the accountholder provides written or electronic consent for the delivery of the accountholders energy usage data to the owner, owners agent, operator, or utility.
(C)Each utility shall deliver, upload, or otherwise provide aggregated energy usage data within four weeks of receiving a request from an owner, owners agent, or operator of a covered building.
(D)Each utility shall make available the covered building energy usage data aggregated at a monthly level unless otherwise specified by the commission.
(E)The building owner and utility shall not have any liability for any use or disclosure by others of usage information delivered as required by this section.
(d)The commission shall adopt regulations providing for the delivery to the commission and public disclosure of benchmarking results of energy use for covered buildings, as follows:
(1)This subdivision shall not require the owner of a building with 16 or fewer residential utility accounts to collect or deliver energy usage information to the commission for public disclosure. commission.
(2)The commission may do, but is not limited to doing, all of the following in regulations adopted pursuant to this subdivision:
(A)Identify and provide for the collection of the energy usage data for the calculation of benchmarking results. of energy use.
(B)Identify and provide for the collection of the covered building characteristic information deemed necessary by the commission for the calculation of benchmarking results. of energy use.
(C)Specify the manner in which certain benchmarking results of energy use shall be publicly disclosed.
(D)Determine which covered buildings, in addition to those described in paragraph (1), are not subject to the public disclosure requirement.
(E)Set a schedule to implement the requirements for public disclosure adopted by the commission.
(F)Determine if compliance with a local or county benchmarking program fulfills the commissions requirements adopted pursuant to this subdivision.
(G)Identify categories of information it receives pursuant to this section that are protected from release under either the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(3)The commission shall determine who will deliver the energy usage data and related information for any covered building to the commission.
(e)The commission may ensure timely and accurate compliance with the data submission requirements of this section by using the enforcement measures identified in Section 25321. An owner of a covered building, or its agents or operators, shall not be liable for any noncompliance due to the failure of a utility to provide the information required for compliance.
(f)For buildings that are not covered buildings, and for customer information that is not aggregated pursuant to subparagraph (A) of paragraph (2) of subdivision (c), the commission may adopt regulations prescribing how utilities shall either obtain the customers permission or determine that a building owner has obtained the customers permission, for the owner to receive aggregated customer information energy usage data or, where applicable, individual customer usage information, including by use of electronic authorization and in a lease agreement between the owner and the customer.
(g)The reasonable costs of an electrical or gas corporation in delivering electrical or gas usage data pursuant to this section or other information as required under state or federal law or by an order of the commission shall be recoverable in rates evaluated and approved by the Public Utilities Commission.
(h)The reasonable costs of local publicly owned electric utilities in disclosing electrical usage data pursuant to this section may be considered cost-effective demand-side management services to promote energy efficiency and energy conservation and thereby reimbursable by their general fund.
(i)Nothing in this section shall prevent a city or county from establishing its own benchmarking program requiring collection, delivery, and disclosure of building information.
SEC. 6.Section 381.2 of the Public Utilities Code is amended to read:381.2.(a)The commission 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)Recognizing the already underway 2015 commission work to adopt efficiency potential and goals, the Energy Commission work on its 2015 energy demand forecast, and the need to determine how to incorporate meter-based performance into determinations of goals, portfolio cost-effectiveness, and authorized budgets, the commission, in a separate or existing proceeding, shall, by September 1, 2016, authorize electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations, as well as operational, behavioral, and retrocommissioning activities reasonably expected to produce multiyear savings. Electrical corporations and gas corporations shall be permitted to recover in rates the reasonable costs of these programs. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved through the authorized programs created by this subdivision, unless determined otherwise, toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d).
(c)Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) for high opportunity projects or programs. The commission shall provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision (b).
(d)In furtherance of subdivision (b), the commission, in consultation with the Energy Commission, shall consider all of the following:
(1)The results of any interagency baseline assessment.
(2)Any available results from investor-owned utility baseline pilot studies ordered in D.14-10-046.
(3)Information necessary to ensure consistency with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(e)The commission may direct electrical corporations and gas corporations to make filings that are necessary to ensure coordination with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(f)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
SEC. 7.Section 384.2 of the Public Utilities Code is amended and renumbered to read:913.7.The commission shall submit a report to the Legislature by July 15, 2009, and triennially thereafter, on the energy efficiency and conservation programs it oversees. The report shall include information regarding authorized utility budgets and expenditures and projected and actual energy savings over the program cycle.
SEC. 8.Section 913.8 is added to the Public Resources Code, to read:913.8.In the report prepared pursuant Section 913.7, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
It is the intent of the Legislature to support strategies that enhance energy efficiency. Building owners should have access to their buildings energy usage information, which enables understanding of a buildings energy usage for improved building management and investment decisions. It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission create a benchmarking and disclosure program through which building owners of commercial and multifamily buildings above 50,000 square feet gross floor area will better understand their energy consumption through standardized energy use metrics.
SEC. 2.Section 25301 of the Public Resources Code is amended to read:25301.(a)At least every two years, the commission shall conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The commission shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the states economy, and protect public health and safety. To perform these assessments and forecasts, the commission may require submission of demand forecasts, resource plans, market assessments, and related outlooks outlooks, individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission from electric and natural gas utilities, transportation fuel and technology suppliers, and other market participants. These assessments and forecasts shall be done in consultation with the appropriate state and federal agencies including, but not limited to, the Public Utilities Commission, the Office of Ratepayer Advocates, the Air Resources Board, the Electricity Oversight Board, the Independent System Operator, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, the Department of Transportation, and the Department of Motor Vehicles. The commission shall maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
(b)In developing the assessments and forecasts prepared pursuant to subdivision (a), the commission shall do all of the following:
(1)Provide information about the performance of energy industries.
(2)Develop and maintain the analytical capability sufficient to answer inquiries about energy issues from government, market participants, and the public.
(3)Analyze and develop Analyze, develop, and evaluate energy policies. policies and programs.
(4)Provide an analytical foundation for regulatory and policy decisionmaking.
(5)Facilitate efficient and reliable energy markets.
SEC. 3.Section 25303 of the Public Resources Code is amended to read:25303.(a)The commission shall conduct electricity and natural gas forecasting and assessment activities to meet the requirements of paragraph (1) of subdivision (a) of Section 25302, including, but not limited to, all of the following:
(1)Assessment of trends in electricity and natural gas supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas under current market structures and expected market conditions.
(2)Forecasts of statewide and regional electricity and natural gas demand including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas, the report shall include an evaluation of average conditions, as well as best and worst case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas demand.
(3)Evaluation of the adequacy of electricity and natural gas supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas infrastructure and systems, including, but not limited to, natural gas production capability both in and out of state, natural gas interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4)Evaluation of potential impacts of electricity and natural gas supply, demand, and infrastructure and resource additions on the electricity and natural gas systems, public health and safety, the economy, resources, and the environment.
(5)Evaluation of the potential impacts of electricity and natural gas load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas systems.
(6)Evaluation of whether electricity and natural gas markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to improve performance.
(7)Identification of impending or potential problems or uncertainties in the electricity and natural gas markets, potential options and solutions, and recommendations.
(8)(A)Compilation and assessment of existing scientific studies that have been performed by persons or entities with expertise and qualifications in the subject of the studies to determine the potential vulnerability to a major disruption due to aging or a major seismic event of large baseload generation facilities, of 1,700 megawatts or greater.
(B)The assessment specified in subparagraph (A) shall include an analysis of the impact of a major disruption on system reliability, public safety, and the economy.
(C)The commission may work with other public entities and public agencies, including, but not limited to, the California Independent System Operator, the Public Utilities Commission, the Department of Conservation, and the Seismic Safety Commission as necessary, to gather and analyze the information required by this paragraph.
(D)Upon completion and publication of the initial review of the information required pursuant to this paragraph, the commission shall perform subsequent updates as new data or new understanding of potential seismic hazards emerge.
(b)Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1)The environmental performance of the electric generation facilities of the state, to include all of the following:
(A)Generation facility efficiency.
(B)Air emission control technologies in use in operating plants.
(C)The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2)The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c)In the absence of a long-term nuclear waste storage facility, the commission shall assess the potential state and local costs and impacts associated with accumulating waste at Californias nuclear powerplants. The commission shall further assess other key policy and planning issues that will affect the future role of nuclear powerplants in the state. The commissions assessment shall be adopted on or before November 1, 2008, and included in the 2008 energy policy review adopted pursuant to subdivision (d) of Section 25302.
(d)The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) and (d) of Section 381.2 of the Public Utilities Code.
SEC. 4.Section 25402.10 of the Public Resources Code is repealed.25402.10.(a)On and after January 1, 2009, electric and gas utilities shall maintain records of the energy consumption data of all nonresidential buildings to which they provide service. This data shall be maintained, in a format compatible for uploading to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager, for at least the most recent 12 months.
(b)On and after January 1, 2009, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, an electric or gas utility shall upload all of the energy consumption data for the account specified for a building to the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager in a manner that preserves the confidentiality of the customer.
(c)In carrying out this section, an electric or gas utility may use any method for providing the specified data in order to maximize efficiency and minimize overall program cost, and is encouraged to work with the United States Environmental Protection Agency and customers in developing reasonable reporting options.
(d)(1)Based on a schedule developed by the commission pursuant to paragraph (2), an owner or operator of a nonresidential building shall disclose the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and ratings for the most recent 12-month period to a prospective buyer, lessee of the entire building, or lender that would finance the entire building. If the data is delivered to a prospective buyer, lessee, or lender, a property owner, operator, or his or her agent is not required to provide additional information, and the information shall be deemed to be adequate to inform the prospective buyer, lessee, or lender regarding the United States Environmental Protection Agencys ENERGY STAR Portfolio Manager benchmarking data and ratings for the most recent 12-month period for the building that is being sold, leased, financed, or refinanced.
(2)The commission shall establish a schedule by which an owner or operator is required to meet the requirements of this subdivision.
(e)Notwithstanding subdivision (d), this section does not increase or decrease the duties, if any, of a property owner, operator, or his or her broker or agent under this chapter or alter the duty of a seller, agent, or broker to disclose the existence of a material fact affecting the real property.
SEC. 5.Section 25402.10 is added to the Public Resources Code, to read:25402.10.(a)For the purposes of this section, the following terms have the following meanings:
(1)Benchmark means to obtain information on the energy use in an entire building for a specific period to enable that usage to be tracked or compared against other buildings.
(2)Covered building for purposes of this section means either or both of the following:
(A)Any building with no residential utility accounts.
(B)Any building with five or more active utility accounts, residential or nonresidential.
(3)Energy means electricity, natural gas, steam, or fuel oil sold by a utility to a customer for end uses addressed by the ENERGY STAR Portfolio Manager system.
(4)ENERGY STAR Portfolio Manager means the tool developed and maintained by the United States Environmental Protection Agency to track and assess the energy performance of buildings.
(b)On and after January 1, 2016, each utility shall maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete calendar months.
(c)(1)Subject to the requirements of paragraph (2), beginning no later than January 1, 2017, each utility shall, upon the request and written authorization or secure electronic authorization of the owner, owners agent, or operator of a covered building, deliver or otherwise provide aggregated energy usage data for a covered building to the owner, owners agent, building operator, or to the owners account in the ENERGY STAR Portfolio Manager. The commission may specify additional information to be delivered by utilities to enable building owners to complete benchmarking of the energy use in their buildings and in other systems or formats for information delivery and automation.
(2)The delivery of information by utilities pursuant to this section shall be subject to the following requirements:
(A)For covered buildings with three or more active utility accounts, each utility shall deliver information showing the aggregated energy usage of all utility customers in the same building for each of the 12 prior months. Notwithstanding any other law, energy usage data aggregated in this manner shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery to the owner, owners agent, or operator of a building. The building owner and utility shall not have any liability for any use or disclosure of aggregated usage information delivered as required by this section.
(B)For covered buildings not subject to subparagraph (A), each utility shall deliver the information showing the aggregated energy usage of all utility customers in the same building for each of the prior 12 months if the accountholder provides written or electronic consent for the delivery of the accountholders energy usage data to the owner, owners agent, operator, or utility.
(C)Each utility shall deliver, upload, or otherwise provide aggregated energy usage data within four weeks of receiving a request from an owner, owners agent, or operator of a covered building.
(D)Each utility shall make available the covered building usage data aggregated at a monthly level unless otherwise specified by the commission.
(E)The building owner and utility shall not have any liability for any use or disclosure by others of usage information delivered as required by this section.
(d)The commission shall adopt regulations providing for the delivery to the commission and public disclosure of benchmarking results for covered buildings, as follows:
(1)This subdivision shall not require the owner of a building with 16 or fewer residential utility accounts to collect or deliver usage information to the commission for public disclosure.
(2)The commission may do, but is not limited to doing, all of the following in regulations adopted pursuant to this subdivision:
(A)Identify and provide for the collection of the energy usage data for the calculation of benchmarking results.
(B)Identify and provide for the collection of the covered building characteristic information deemed necessary by the commission for the calculation of benchmarking results.
(C)Specify the manner in which certain benchmarking results shall be publicly disclosed.
(D)Determine which covered buildings, in addition to those described in paragraph (1), are not subject to the public disclosure requirement.
(E)Set a schedule to implement the requirements for public disclosure adopted by the commission.
(F)Determine if compliance with a local or county benchmarking program fulfills the commissions requirements adopted pursuant to this subdivision.
(G)Identify categories of information it receives pursuant to this section that are protected from release under either the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(3)The commission shall determine who will deliver the energy usage data and related information for any covered building to the commission.
(e)The commission may ensure timely and accurate compliance with the data submission requirements of this section by using the enforcement measures identified in Section 25321. An owner of a covered building, or its agents or operators, shall not be liable for any noncompliance due to the failure of a utility to provide the information required for compliance.
(f)For buildings that are not covered buildings, and for customer information that is not aggregated pursuant to subparagraph (A) of paragraph (2) of subdivision (c), the commission may adopt regulations prescribing how utilities shall either obtain the customers permission or determine that a building owner has obtained the customers permission, for the owner to receive aggregated customer information or, where applicable, individual customer usage information, including by use of electronic authorization and in a lease agreement between the owner and the customer.
(g)The reasonable costs of an electrical or gas corporation in delivering electrical or gas usage data pursuant to this section or other information as required under state or federal law or by an order of the commission shall be recoverable in rates evaluated and approved by the Public Utilities Commission.
(h)The reasonable costs of local publicly owned electric utilities in disclosing electrical usage data pursuant to this section may be considered cost-effective demand-side management services to promote energy efficiency and energy conservation and thereby reimbursable by their general fund.
(i)Nothing in this section shall prevent a city or county from establishing its own benchmarking program requiring collection, delivery, and disclosure of building information.
SECTION 1.SEC. 6.Section 381.2 of the Public Utilities Code is amended to read:381.2.(a)The commission 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)(1)By July 1, 2016, Recognizing the already underway 2015 commission work to adopt efficiency potential and goals, the Energy Commission work on its 2015 energy demand forecast, and the need to determine how to incorporate meter-based performance into determinations of goals, portfolio cost-effectiveness, and authorized budgets, the commission, in a separate or existing proceeding, shall shall, by September 1, 2016, authorize electrical corporations or gas corporations to recover in rates the reasonable costs of programs that provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations, as well as operational, behavioral, and retrocommissioning activities. activities reasonably expected to produce multiyear savings. Electrical corporations and gas corporations shall be permitted to recover in rates the reasonable costs of these programs. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved through the authorized programs created by this subdivision, unless determined otherwise, toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect the energy efficiency savings achieved in meeting or exceeding the requirements of Title 24 of the California Code of Regulations in existing buildings. this change in savings estimation consistent with this subdivision and subdivision (d).
(c)Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) for high opportunity projects or programs. The commission shall provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision (b).
(d)In furtherance of subdivision (b), the commission, in consultation with the Energy Commission, shall consider all of the following:
(1)The results of any interagency baseline assessment.
(2)Any available results from investor-owned utility baseline pilot studies ordered in D.14-10-046.
(3)Information necessary to ensure consistency with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(e)The commission may direct electrical corporations and gas corporations to make filings that are necessary to ensure coordination with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(2)
(f)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
(c)In the report prepared pursuant to Section 384.2, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
(d)This section does not require the commission to increase funding for energy efficiency programs of electric corporations or gas corporations that are recoverable in rates.
SEC. 7.Section 384.2 of the Public Utilities Code is amended and renumbered to read:384.2.913.7.The commission shall submit a report to the Legislature by July 15, 2009, and triennially thereafter, on the energy efficiency and conservation programs it oversees. The report shall include information regarding authorized utility budgets and expenditures and projected and actual energy savings over the program cycle.
SEC. 8.Section 913.8 is added to the Public Resources Code, to read:913.8.In the report prepared pursuant Section 913.7, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
(a)The commission 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)(1)By July 1, 2016, the commission, in a separate or existing proceeding, shall authorize electrical corporations or gas corporations to recover in rates the reasonable costs of programs that provide financial incentives or rebates or both incentives and rebates incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the installation adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations. Regulations, as well as operational, behavioral, and retrocommissioning activities. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect the energy efficiency savings achieved in meeting or exceeding the requirements of Title 24 of the California Code of Regulations in existing buildings.
(2)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
(c)In the report prepared pursuant to Section 384.2, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
(d)This section does not require the commission to increase funding for energy efficiency programs of electric corporations or gas corporations that are recoverable in rates.
(a)The commission 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)(1)By July 1, 2016, the commission, in a separate or existing proceeding, shall authorize electrical corporations or gas corporations to recover in rates the reasonable costs of programs that provide financial incentives or rebates or both incentives and rebates to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the installation of a measure or equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect the energy efficiency savings achieved in meeting or exceeding the requirements of Title 24 of the California Code of Regulations in existing buildings.
(2)The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
(c)In the report prepared pursuant to Section 384.2, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
(d)This section does not require the commission to increase funding for energy efficiency programs of electric corporations or gas corporations that are recoverable in rates.
(a)By March 1, 2010, the commission, by opening a new proceeding or amending an existing proceeding, The commission 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)By July 1, 2016, the commission, in a separate or existing proceeding, shall authorize electrical corporations or gas corporations to recover in rates the reasonable costs of programs that provide financial incentives or rebates or both incentives and rebates to their customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include energy usage reductions resulting from the installation of a measure or equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect the energy efficiency savings achieved in meeting or exceeding the requirements of Title 24 of the California Code of Regulations in existing buildings.
(b)
(c)In the report prepared pursuant to Section 384.2, the commission shall include an assessment of each electrical corporations and each gas corporations implementation of the program developed pursuant to Section 25943 of the Public Resources Code.
SECTION 1.(a)It is the intent of the Legislature to enact legislation to require electrical and gas corporations to satisfy the states energy requirements with energy efficiency measures when procuring those measures is less expensive to the corporation than procuring alternative electric or gas resources.
(b)It is the intent of the Legislature to enact legislation to require that all applicable state and federal contractor qualifications, licensing, certifications, and wages appropriate for the work to be performed are followed for any energy efficiency retrofit and installation project funded by ratepayers.
SEC. 2.Section 454.55 of the Public Utilities Code is amended to read:454.55.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective electricity efficiency savings and establish efficiency targets for an electrical corporation to achieve pursuant to Section 454.5.
(b)In evaluating the cost-effectiveness of electricity efficiency savings, the commission shall consider the total electricity efficiency savings to be the difference between the electrical usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the electrical usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
SEC. 3.Section 454.56 of the Public Utilities Code is amended to read:454.56.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective natural gas efficiency savings and establish efficiency targets for the gas corporation to achieve.
(b)A gas corporation shall first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
(c)In evaluating the cost-effectiveness of natural gas efficiency savings, the commission shall consider the total natural gas efficiency savings to be the difference between the natural gas usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the natural gas usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
(a)It is the intent of the Legislature to enact legislation to require electrical and gas corporations to satisfy the states energy requirements with energy efficiency measures when procuring those measures is less expensive to the corporation than procuring alternative electric or gas resources.
(b)It is the intent of the Legislature to enact legislation to require that all applicable state and federal contractor qualifications, licensing, certifications, and wages appropriate for the work to be performed are followed for any energy efficiency retrofit and installation project funded by ratepayers, and to require that the Public Utilities Commission not create additional qualification, license, certification, or wage requirements. ratepayers.
SEC. 2.Section 454.55 of the Public Utilities Code is amended to read:454.55.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective electricity efficiency savings and establish efficiency targets for an electrical corporation to achieve pursuant to Section 454.5.
(b)In evaluating the cost-effectiveness of electricty electricity efficiency savings, the commission shall consider the total electricity efficiency savings to be the difference between the electrical usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the electrical usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
SEC. 3.Section 454.56 of the Public Utilities Code is amended to read:454.56.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective natural gas efficiency savings and establish efficiency targets for the gas corporation to achieve.
(b)A gas corporation shall first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
(c)In evaluating the cost-effectiveness of natural gas efficiency savings, the commission shall consider the total natural gas efficiency savings to be the difference between the natural gas usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the natural gas usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
(a)It is the intent of the Legislature to enact legislation to require electrical and gas corporations to satisfy the states energy requirements with energy efficiency measures when procuring those measures is less expensive to the corporation than procuring alternative electric or gas resources.
(b)It is the intent of the Legislature to enact legislation to require that all applicable state and federal contractor qualifications, licensing, certifications, and wages appropriate for the work to be performed are followed for any energy efficiency retrofit and installation project funded by ratepayers, and to require that the Public Utilities Commission not create additional qualification, license, certification, or wage requirements.
SEC. 2.Section 454.55 of the Public Utilities Code is amended to read:454.55.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective electricity efficiency savings and establish efficiency targets for an electrical corporation to achieve pursuant to Section 454.5.
(b)In evaluating the cost-effectiveness of electricty efficiency savings, the commission shall consider the total electricity efficiency savings to be the difference between the electrical usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the electrical usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
SEC. 3.Section 454.56 of the Public Utilities Code is amended to read:454.56.(a)The commission, in consultation with the State Energy Resources Conservation and Development Commission, shall identify all potentially achievable cost-effective natural gas efficiency savings and establish efficiency targets for the gas corporation to achieve.
(b)A gas corporation shall first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible.
(c)In evaluating the cost-effectiveness of natural gas efficiency savings, the commission shall consider the total natural gas efficiency savings to be the difference between the natural gas usage resulting after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates, and the natural gas usage without that energy efficiency measure, without regard to standards prescribed pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code.
SECTION 1.Section 25943 of the Public Resources Code is amended to read:25943.(a)(1)The commission shall develop and implement a comprehensive program to achieve greater energy savings in Californias 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 is not 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 Bureau of Real Estate, the Department of Housing and Community Development, investor-owned and publicly owned utilities, local governments, real estate licensees, commercial and homebuilders, 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 users energy consumption level, relative efficiency compared to other users, and opportunities to achieve greater efficiency or improve energy resource utilization.
(a)(1)By March 1, 2010, the The commission shall establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in Californias 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 is not 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 Bureau of Real Estate, the Department of Housing and Community Development, investor-owned and publicly owned utilities, local governments, real estate licensees, commercial and homebuilders, 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 users energy consumption level, relative efficiency compared to other users, and opportunities to achieve greater efficiency or improve energy resource utilization.
|
Date
|
Status
|
|---|---|
| Sep 10, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (September 10). Re-referred to Com. on APPR. |
| Aug 31, 2015 | Read second time. Ordered to third reading. |
| Sep 4, 2015 | Read third time and amended. Ordered to second reading. |
| Sep 8, 2015 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10 (c). |
| Sep 8, 2015 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). |
| Sep 8, 2015 | Read second time. Ordered to third reading. |
| Sep 9, 2015 | Joint Rule 61 suspended. (Ayes 27. Noes 6.) |
| Sep 9, 2015 | Joint Rule 61(a) suspended. (Ayes 27. Noes 6. Page 2645.) |
| Sep 9, 2015 | Joint Rule 62(a) suspended. (Ayes 27. Noes 6. Page 2646.) |
| Sep 9, 2015 | Joint Rule 62(a) suspended. (Ayes 27. Noes 6.) |
| Sep 9, 2015 | Re-referred to Com. on E., U., & C. |
| Sep 9, 2015 | Senate Rule 29.3(b) suspended. (Ayes 27. Noes 6. Page 2646.) |
| Sep 9, 2015 | Senate Rule 29.3(b) suspended. (Ayes 27. Noes 6.) |
| Sep 10, 2015 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (September 10). |
| Aug 27, 2015 | From committee: Do pass. (Ayes 6. Noes 0.) (August 27). |
| Sep 10, 2015 | Read second time and amended. Ordered to third reading. |
| Sep 11, 2015 | Assembly Rule 63 suspended. |
| Sep 11, 2015 | Assembly Rule 63 suspended. (Page 3194.) |
| Sep 11, 2015 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 11, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Sep 11, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 27. Noes 9. Page 2749.). |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 3205.). |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0.). |
| Sep 23, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Oct 8, 2015 | Approved by the Governor. |
| Oct 8, 2015 | Chaptered by Secretary of State - Chapter 590, Statutes of 2015. |
| May 6, 2015 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Feb 27, 2015 | From printer. May be heard in committee March 29. |
| Mar 23, 2015 | Referred to Coms. on NAT. RES. and U. & C. |
| Apr 7, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Apr 8, 2015 | Re-referred to Com. on NAT. RES. |
| Apr 9, 2015 | In committee: Hearing postponed by committee. |
| Apr 9, 2015 | Re-referred to Com. on RLS. pursuant to Assembly Rule 96. |
| Apr 13, 2015 | From committee: Be re-referred to Com. on U. & C. Re-referred. (Ayes 11. Noes 0.) (April 13). Re-referred to Com. on U. & C. |
| Apr 20, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & C. Read second time and amended. |
| Apr 21, 2015 | Re-referred to Com. on U. & C. |
| Apr 28, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (April 27). Re-referred to Com. on APPR. |
| May 1, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. |
| May 4, 2015 | Re-referred to Com. on APPR. |
| Feb 26, 2015 | Read first time. To print. |
| May 28, 2015 | From committee: Amend, and do pass as amended. (Ayes 17. Noes 0.) (May 28). |
| May 28, 2015 | Read second time and amended. Ordered returned to second reading. |
| Jun 1, 2015 | Read second time. Ordered to third reading. |
| Jun 2, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1808.) |
| Jun 11, 2015 | Referred to Com. on E., U., & C. |
| Jun 18, 2015 | In committee: Hearing postponed by committee. |
| Jun 22, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U., & C. |
| Jul 6, 2015 | In committee: Hearing postponed by committee. |
| Jul 14, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 13). Re-referred to Com. on APPR. |
| Aug 17, 2015 | In committee: Referred to APPR. suspense file. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 11, 2015 | AB 802 WILLIAMS Concurrence in Senate Amendments By RENDON | Assembly Floor |
Passed |
|
| Sep 11, 2015 | Assembly 3rd Reading AB802 Williams By Wolk | Senate Floor |
Passed |
|
| Sep 10, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
|
| Sep 10, 2015 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 27, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 17, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 13, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
|
| Jun 2, 2015 | AB 802 WILLIAMS Assembly Third Reading | Assembly Floor |
Passed |
|
| May 28, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 27, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Utilities and Commerce |
Passed |
|
| Apr 13, 2015 | Be re-referred to the Committee on [Utilities and Commerce] | Assembly Standing Committee on Rules |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Bay Area Regional Energy Network | ** Support | Sep 10, 2015 |
| Building Owners and Managers Association of California | ** Support | Sep 10, 2015 |
| California Building Industry Association | ** Support | Sep 10, 2015 |
| California Business Properties Association | * Support | Sep 10, 2015 |
| California Chamber Of Commerce | * Support | Sep 10, 2015 |
| California Coalition of Utility Employees | * Support | Sep 10, 2015 |
| California Energy Efficiency Industry Council | ** Against | Sep 10, 2015 |
| California Energy Efficiency Industry Council | * Support | Sep 10, 2015 |
| California Energy Efficiency Industry Council | ** Support | Sep 10, 2015 |
| California Energy Efficiency Industry Council, unless amended | ** Against | Jul 13, 2015 |
| California Housing Partnership | * Support | Sep 10, 2015 |
| California Housing Partnership Corporation | * Support | Sep 10, 2015 |
| California Municipal Utilities Association | * Against | Sep 10, 2015 |
| California State Association Of Electrical Workers | ** Support | Sep 10, 2015 |
| California State Council Of Laborers | ** Support | Sep 10, 2015 |
| California State Pipe Trades Council | ** Support | Sep 10, 2015 |
| California State Pipeline Trades Council | ** Support | Sep 10, 2015 |
| Center for Sustainable Energy | ** Support | Sep 10, 2015 |
| City of Berkeley Mayor, Tom Bates | ** Support | Sep 10, 2015 |
| City of San Francisco | * Support | Sep 10, 2015 |
| Clean Power Campaign | * Support | Sep 10, 2015 |
| Coalition of California Utility Employees | * Support | Sep 10, 2015 |
| Commercial Real Estate Development Association | ** Support | Sep 10, 2015 |
| County of San Francisco | * Support | Sep 10, 2015 |
| Efficiency Council | * Support | Sep 10, 2015 |
| EnerNOC | ** Support | Sep 10, 2015 |
| Environmental Defense Fund | * Support | Sep 10, 2015 |
| Institute of Market Transformation | ** Support | Sep 10, 2015 |
| International Council of Shopping Centers | ** Support | Sep 10, 2015 |
| Large Scale Solar Associaiton | * Against Unless Amend | Jul 13, 2015 |
| Local Government Sustainable Energy Coalition | ** Support | Sep 10, 2015 |
| Marin Clean Energy | ** Support | Sep 10, 2015 |
| Natural Resources Defense Council | * Support | Sep 10, 2015 |
| Northern California Power Agency | * Support | Sep 10, 2015 |
| Northern California Power Agency | * Against | Sep 10, 2015 |
| Office of Mayor Ed Lee | * Support | Sep 10, 2015 |
| Office of Ratepayer Advocates | ** Against | Sep 10, 2015 |
| Pacific Gas & Electric Company | * Support | Sep 10, 2015 |
| Pacific Gas & Electric Company | * Support | Sep 10, 2015 |
| San Diego Gas & Electric Company | * Support | Sep 10, 2015 |
| San Diego Gas and Electric | * Support | Sep 10, 2015 |
| San Diego Gas and Electric | * Support | Sep 10, 2015 |
| Santa Monica, City Of | * Support | Sep 10, 2015 |
| Santa Monica, City Of | ** Support | Sep 10, 2015 |
| Sempra Energy Utilities | * Support | Sep 10, 2015 |
| Sierra Club California | ** Support | Sep 10, 2015 |
| Southern California Edison | * Support | Sep 10, 2015 |
| Southern California Edison | * Support | Sep 10, 2015 |
| Southern California Gas | * Support | Sep 10, 2015 |
| Southern California Gas Company | * Support | Sep 10, 2015 |
| Southern California Gas Company | * Support | Sep 10, 2015 |
| Technet | * Support | Sep 10, 2015 |
| The Energy Coalition | ** Support | Sep 10, 2015 |
| The Utility Reform Network | * Support | Sep 10, 2015 |
| The Utility Reform Network | * Support | Sep 10, 2015 |
| Union Of Concerned Scientists | ** Support | Sep 10, 2015 |
| Western States Council Of Sheet Metal Workers | ** Support | Sep 10, 2015 |
AB 802
Page 3
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB 802
(Williams)
As Amended September 10, 2015
Majority vote
ASSEMBLY: |
74-0 |
(June 2, 2015) |
SENATE: |
|
(September 11, 2015) |
(vote not available)
Original Committee Reference: U. & C.
SUMMARY: Requires the California Public Utilities Commission (CPUC) to authorize electrical corporations or gas corporations – investor-owned utilities (IOUs) - to provide incentives and assistance for measures to conform a building to California Energy Commission's (CEC) energy efficiency standards for existing buildings and to allow IOUs to recover in rates the reasonable costs of those incentives and assistance.
The Senate amendments:
Requires the CEC to make adjustments to its energy demand forecasts.
Requires the CEC to use its assessments and forecasts relating to various aspects of the energy industry to develop and evaluate energy policies and programs.
Requires utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete months, and require each utility, upon the request and the written authorization or secure electronic authorization of the owner, owner’s agent, or operator of a covered buildings, to deliver or provide aggregated energy usage data for a covered building to the owner, owner’s agent, operator, or to the owner’s account in the ENERGY STAR Portfolio Manager, as specified.
Authorizes the CEC to specify additional information to be delivered by utilities for certain purposes.
Deletes the requirement that an owner or operator of a building disclose the energy performance information to a prospective buyer, lessee of the entire building, or lender that would finance the entire building.
Requires CEC to adopt regulations providing for the delivery to the Commission and public disclosure of benchmarking results for covered buildings.
The bill would authorize the CEC to impose a civil fine, as provided, for a violation of these data submission requirements.
Make technical clarifying amendments.
EXISTING LAW:
Requires a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code Sections 381 and 890)
Requires electric corporation procurement plans to first meet its unmet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code Sections 454.5 (b)(9)(C))
Requires the CPUC to establish targets for all potentially achievable cost-effective electricity and gas efficiency savings. (Public Utilities Code Sections 454.55 and 454.56)
Requires the CEC to develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas savings, establish targets for statewide annual energy efficiency savings, and demand reduction for the next 10-year period. (Public Resources Code Section 25310)
Requires the CEC to adopt cost-effective energy and water efficiency standards for new buildings and appliances. (Public Resources Code Section 25402)
Prohibits the sale of new appliances that do not meet the energy and water efficiency standards adopted by the CEC. (Public Resources Code Section 25402(c)(2))
Requires an owner or operator of a nonresidential building to disclose the United States Environmental Protection Agency's ENERGY STAR Portfolio Manager benchmarking data and ratings for the most recent 12-month period to a prospective buyer, lessee of the entire building, or lender that would finance the entire building based on a schedule developed by the CEC. (Public Resources Code Section 25402.10(d))
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code Section 25943)
FISCAL EFFECT: According to Senate Appropriations Committee:
Ongoing costs of $1.7 million to the Energy Resources Program Account (General Fund) for additional workload and contracts to implement the new benchmarking program and to incorporate additional energy efficiency information into the CEC’s assessments and forecasts.
Unknown costs, but at least $900,000 to the Public Utilities Reimbursement Account (special) for additional staff at the CPUC to oversee, evaluate, and review the energy efficiency program, and to provide an expedited authorization of high opportunity projects.
Unknown costs, but potentially in the millions of dollars to the General Fund and various special funds to the state as a ratepayer of IOUs for additional energy efficiency program costs.
COMMENTS:
Background. Existing law requires that the state's energy needs first be met by increasing energy efficiency under the "loading order." Consistent with the loading order, existing law requires electric and gas IOUs to meet unmet resources with all available energy efficiency and demand reduction that is cost effective, reliable, and feasible. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently ratepayers pay approximately $1 billion for financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Below-code buildings not eligible. Under the CPUC's existing rules, the IOUs energy savings is calculated against a baseline, which is based on a) "natural occurring savings," b) standard industry practice, and c) Title 24 energy efficiency standards for existing buildings. Thus, when the energy efficiency project involves an existing building, only those savings above the baseline are eligible for incentives and assistance.
Minimum efficiency standards continue to tighten. Title 24 of the California Code of Regulations establishes building standards for energy efficiency. They were first adopted in 1978, and are currently updated approximately every three years. The standards are developed by the CEC, and are applied when a building permit is issued.
Energy Forecasts. Following a hearing in January 2013, before the Senate Energy, Utilities, and Commerce Committee, the CPUC, CEC, and the California Independent System Operator (CAISO) committed to aligning their respective processes to coordinate energy efficiency so that there is proper accounting; align the key milestones of the demand forecasting process, including projections for energy efficiency; CEC modifying its existing models to support forecasting at more granular geographic levels in response to the needs of the CPUC and CAISO; and developing new modeling methods to more robustly capture efficiency impacts. Customer-specific energy data could improve the accuracy of those forecasts.
In response to concerns regarding the privacy of energy data, the author submitted a letter to the Senate Journal stating that AB 802 does not require small residential property owners of buildings with 16 or fewer residential utility accounts to collect or deliver energy usage or building characteristic information to the CEC. Rather, the bill gives owners of buildings the right to receive such information.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083 FN: 0002439
AB 802 (Williams) Page 12 of 12
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: AB 802 Hearing Date: 9/10/2015
Author: |
Williams |
||
Version: |
9/4/2015 As Amended |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Jay Dickenson |
||
SUBJECT: Energy efficiency
PURSUANT TO SENATE RULE 29.10 (c)
DIGEST: This bill addresses three distinct energy programs. First, this bill expands the types and level of information the California Energy Commission (CEC) may require to be submitted to it and requires CEC to have reasonable policies and procedures to protect customer information.
Second, this bill abolishes the existing CEC-administered “AB 1103” program of nonresidential building energy consumption disclosure and replaces it with an energy use “benchmarking” program for certain larger commercial and residential buildings.
Third, this bill requires the California Public Utilities Commission (CPUC) to authorize electrical corporations or gas corporations (IOUs) to provide incentives and assistance for measures to conform a building to CEC’s energy efficiency standards for existing buildings and to allow IOUs to recover in rates the reasonable costs of those incentives and assistance.
ANALYSIS:
Existing law:
Requires the CEC biennially to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices and to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, and protect public health and safety. The CEC publishes its assessments and forecasts every two years in its Integrated Energy Policy Report (IEPR). (Public Resources Code §25301.)
Requires each electrical and gas utility to maintain records of the energy consumption of all nonresidential buildings to which it provides service. The utility must upload energy consumption data to a database upon authorization of a nonresidential building owner or operator. The owner or operator of a nonresidential building discloses the benchmarking data and ratings for the building for the most recent 12 months to a prospective buyer, lessee, or lender. This is informally known as the “AB 1103” program. (Public Resources Code §25402.10.)
Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code §§381 and 890)
Requires electrical corporation procurement plans to first meet unmet resource needs through all available energy efficiency, and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.5 (b)(9)(C))
Requires the CPUC to identify all potentially achievable cost-effective electricity and natural gas efficiency savings and to establish energy efficiency procurement targets and ratepayer-funded programs for IOUs. Requires a gas corporation to first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.55 and 454.56.)
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code §25943)
This bill:
Regarding CEC data collection and forecasts:
Expands the types of information the CEC, as part of its biennial energy industry assessments and forecasts, may require to be submitted to it to include individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the CEC.
Requires the CEC to maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
Directs the CEC, in consultation with the CPUC, to make all reasonable adjustments to it energy demand forecasts to account for its findings of market conditions and existing baselines.
Regarding benchmarking:
States that building owner should have access to their buildings’ energy use to improve building management and investment decisions.
States the intent of the Legislature that the CEC create a benchmarking and disclosure program through which owners of commercial and multifamily buildings above 50,0000 square feet in gross floor area better understand their energy consumption through standardized metrics.
Abolishes the “AB 1103” program of nonresidential energy use disclosure, administered by the CEC.
Creates a new energy use benchmarking program for “covered buildings,” meaning (a) any building with no residential utility accounts, or (b) any building with five or more active utility accounts, residential or nonresidential.
Beginning January 1, 2016, requires a utility that sells electricity, natural gas, steam, or fuel oil to a customer for end uses addressed by the United States Environmental Protection Agency’s (US EPA’s) ENERGY STAR Portfolio Manager system to maintain records for 12 calendar months of the energy usage data of all buildings to which they provide service.
Beginning January 1, 2017, requires a utility to provide aggregated energy usage data to the owner or operator of a covered building, within four weeks of the owner or operator’s request, subject to the following requirements:
For a covered building with three or more active utility accounts, the utility shall deliver the aggregated energy usage data for all utility customers in the same building for each of the prior 12 months, at a monthly level unless otherwise specified by CEC. The aggregated energy usage data shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery. The building owner and utility shall not have any liability for any use or disclosure of aggregated usage information delivered in keeping with the bill’s requirements.
For all other covered buildings, the utility shall deliver aggregated energy usage data for all utility customers in a given building for each of the prior 12 month, at a monthly level unless otherwise specified by CEC, only if the accountholder provides written or electronic consent to the building owner or operator.
Authorizes CEC to specify additional information a utility must deliver to allow an owner or operator of a covered building to complete energy use benchmarking.
Declares the building owner and utility shall not have liability for any use or disclosure by others of usage information delivered as required by this bill.
Directs CEC to adopt regulations governing the delivery to CEC of benchmarking results, which are distinct from aggregate energy usage data, and for the public disclosure of the benchmarking results, and authorizes CEC, in adopting the regulations, to make a number of determinations, including additional covered buildings not subject to the public disclosure requirement and categories of data that are protected from release under existing laws.
States that CEC’s regulations governing delivery and public disclosure of benchmarking results shall not require an owner of a building with 16 or fewer residential utility accounts to collect or deliver usage information to the CEC for public disclosure.
States that the reasonable cost of an IOU to deliver information as required by this bill are recoverable in rates.
States that the reasonable costs of a local publicly owned utility in disclosing electrical usage data pursuant to this bill may be considered “cost-effective demand-side management services to promote energy efficiency and energy conservation” and thereby reimbursable by the utility’s general fund.
Regarding energy efficiency measures for existing buildings:
Requires the CPUC, by September 1, 2016, to authorize an IOU to provide incentives for the cost of energy efficiency programs based on all estimated energy savings, including energy savings from bringing existing buildings into compliance with mandatory energy efficiency codes for existing buildings issued by the CEC, and authorizes an IOU to recover the costs in rates. States that the energy efficiency measures described above may include savings and reductions from measures to conform a building with existing energy efficiency regulation, as well as certain operational, behavioral, and retrocommissioning activities.
States that the CPUC may adjust the energy efficiency procurement targets to reflect energy efficiency savings achieved in meeting or exceeding mandatory energy efficiency codes for existing buildings.
Authorizes the IOUs, effective January 1, 2016, to provide the financial incentives and assistance described above for “high opportunity projects or programs.”
Background I – CEC’s IEPR
CEC assessments and forecast: expanded authority. Statute requires CEC to prepare a biennial integrated energy policy report, known as the IEPR, that contains an assessment and forecast of major energy trends and issues facing the state's electricity, natural gas and transportation fuel sectors. Statute directs the CEC to use the IEPR assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure reliable, secure, and diverse energy supplies, enhance the state's economy and protect public health and safety.
Statute provides CEC with broad authority to require the submission of various types of information to enable it to perform the assessments and forecasts that comprise the IEPR. Statute specifically authorizes CEC to require submission of demand forecasts, resource plans, market assessments, and related outlooks. This bill expands the specific types of information CEC may compel entities to provide it to include individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission. This bill also expands the CEC IEPR responsibilities to include the development and evaluation of energy policies and programs. Finally, this bill directs CEC to maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
Background II – Energy Usage Benchmarking and Public Disclosure
Death to benchmarking. Long live benchmarking. Benchmarking compares the energy consumption per square foot of floor space for comparable classes of buildings. It is a tool for understanding the relative energy efficiency of buildings.
Under current law, CEC administers the Nonresidential Building Energy Use Program, a benchmarking and public disclosure program more commonly known as the AB 1103 program. Under this program, an owner or operator of a large commercial building must disclose energy consumption data to a prospective buyer, lessee or lender. IOUs are required to maintain and disclose the necessary data for the rankings by uploading it to the US EPA’s ENERGY STAR Portfolio Manager.
This bill replaces the AB 1103 program with a new energy use benchmarking and public disclosure program. Under this new program, a utility must maintain energy usage data for all buildings to which it provides service for at least the most recent 12 complete calendar months. The utility would need to provide the benchmark data to a building owner or operator within four weeks of request, and the CEC would develop regulations to govern delivery of benchmark data to the commission and the public disclosure of such data. This bill includes language that states the intent of the Legislature that the CEC create a benchmarking and disclosure program through which owners of commercial and multifamily buildings 50,000 square feet and larger will better understand their energy consumption through standardized energy use metrics.
The CEC acknowledges that the AB 1103 program has been less than successful. It has delayed program implementation repeatedly. In justifying its most recent delay of the program, the CEC cited the following “substantial barriers” to program success1:
Technical difficulties in the roll-out of the US EPA’s ENERGY STAR Portfolio Manager platform and software.
Ambiguity about when public disclosure of energy usage data.
Infrequency of public disclosure of energy usage data.
Utilities and electric service providers requiring tenant consent before releasing required energy use data to building owners, causing delay and increasing transaction costs.
Reported inability of smaller utilities to process necessary program information.
Resistance to the requirements of program regulations.
The benchmarking program in this bill differs from the AB 1103 program in several significant ways that potentially improve the program. Specifically, this bill:
Explicitly directs each utility to maintain energy use data for all buildings to which it provides service and to promptly provide the data to owners of covered buildings, upon request.
Expands the benchmarking program to cover all commercial and residential buildings.
Relieves owners of smaller buildings by focusing the benchmarking program on buildings larger than 50,000 square feet gross floor area (at least, as expressed in this bill’s intent language but, curiously, not in the codified sections of this bill).
Allows CEC to specify in regulations when public disclosure of benchmarking results is to occur, thereby removing ambiguity about the timing of disclosure requirements.
Privacy concerns. Some entities, including the California Municipal Utilities Association (CMUA) and Northern California Power Association (NCPA), express concern with explicitly authorizing CEC to compel utilities and others to share individual energy use data, and at a format and level specified by CEC. These entities contend that customer energy usage data belongs to the customer and that the customer should decide who receives such data.
This bill includes numerous provisions to protect customer data. For example, in regards to CEC’s energy industry assessments and forecasts, this bill requires utilities and others to share individual customer historic energy usage and billing data only with CEC, and this bill requires CEC to maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
This bill also seeks to prevent the release of customer usage data for benchmarking purposes. The bill requires utilities to release aggregate energy usage data only to the owner of a covered building upon request. This bill limits this reporting mandate to commercial buildings with three or more active utility accounts and residential buildings with five or more active utility accounts. In most conceivable cases, it would be somewhat difficult or impossible for a third party to glean much about an individual tenant’s energy use by reference to the energy usage data provided to a building owner. This is because the data is, as mentioned, in the aggregate for all of a building’s tenants and covering a year in twelve monthly increments, and the utility will not provide individual tenant energy usage data to the owner of a covered building without the tenant’s permission. What’s more, many building owners have access to the electric and gas meters of their tenants in any case.
Similarly, this bill’s provisions regarding public disclosure of benchmarking results seek to protect individual customer data. This bill prohibits the CEC from requiring the owner of a building with 16 or fewer residential utility accounts to collect or deliver energy usage information data to CEC for public disclosure. This bill also authorizes CEC to identify additional covered building types that are not subject to the public disclosure requirement. And the CEC is subject, as this bill notes, to the confidentiality and other requirements of the Public Records Act, Information Practices Act and other laws protecting privacy and confidentiality.
Despite these protections, it may be possible to learn something of an individual tenant based on aggregated customer energy usage. As an illustration, NCPA describes a large building with three commercial tenants, two of which are very small. Some of NCPA’s member utilities report of industrial customers who are very protective of their industrial data. Such customers imagine a rival discerning business activity, such as an upcoming product release, based upon an increase in a building’s aggregate energy use over the course of a month. Of course, statute prevents a building owner from disclosing such data to a third party. (See California Civil Code §1798.98.) However, such information might be quite valuable, and disclosure could happen, legal prohibition notwithstanding.
In addition, this bill explicitly authorizes CEC to require utilities to make covered building usage data aggregated at a sub-monthly level. Were the CEC to do so, such frequent interval energy usage data could be quite revealing indeed. And even the requirement that CEC maintain reasonable policies and procedures to protect customer information provides only so much comfort: no one, the CEC included, is immune to cyber theft, especially of the sophisticated kind.
Drafting error? According to the author, the current version of this bill includes a drafting error in Public Resources Code §25401.10 (d)(1): there should be a period after the word “commission;” however, this bill erroneously includes the words “for public disclosure” after the word “commission.” The effect, if any, of inclusion of these three words is unclear. It seems, and the author reports his intent that, the addition of “for public disclosure” does not imply that the owner of a building with 16 or fewer utility accounts may be required to deliver usage information to the CEC if used for a purpose other than public disclosure. In any case, the committee may wish to amend this bill as follows:
Public Resources Code §25401.10(d)(1)
This subdivision shall not require the owner of a building with 16 or
fewer residential utility accounts to collect or deliver usage
information to the commission for public disclosure.
Many terms, few meanings? This bill’s benchmarking provisions seem to use different terms for the same concepts. For example, this bill uses the following similar terms:
Aggregated customer information.
Aggregated energy usage data.
Aggregated energy usage.
Aggregated usage information.
Benchmarking of the energy use.
Benchmarking results.
Energy usage data.
Usage data.
According to the author, the following groups of terms have equivalent meanings, as used in this bill:
Aggregated customer information; aggregated energy usage data; aggregated energy usage; aggregated usage information.
Benchmarking of the energy use; benchmarking results.
Energy usage data; usage data.
The committee may wish to amend this bill to make consistent use of these terms.
Background III – Energy Efficiency of Existing Buildings
Energy efficiency atop the load. The “loading order” guides the state’s energy policies and decisions according to the following order of priority: (1) decreasing energy demand by increasing energy efficiency; (2) responding to energy demand by reducing energy usage during peak hours; (3) meeting new energy generation needs with renewable resources; and (4) meeting new energy generation needs with clean fossil-fueled generation. This policy has been adopted by the energy agencies – the CEC and CPUC – and its principles guide all energy programs.
Consistent with the loading order, statute requires both electrical and gas IOUs to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable and feasible. The CPUC uses these criteria to establish energy efficiency targets for the IOUs. To achieve these targets, the IOUs (and, in some cases, community choice aggregators) administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently funded at about $1 billion per year, the programs include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Setting the bar high. According to existing CPUC rules, each IOU claims credit for energy savings from the portfolio of energy efficiency measures in its energy efficiency program. The CPUC evaluates the claimed energy savings and, after adjustment, authorizes financial rewards for the IOU.
The CPUC measures claimed savings against a baseline, which the CPUC generally defines as being comprised of three factors: (1) “naturally occurring savings,” (2) standard industry practice and (3) the CEC’s Title 24 energy efficiency standards for existing buildings. The CPUC sets the baseline at this level to avoid “free ridership,” that is, credit for energy savings that would have occurred absent the IOUs’ energy efficiency programs. Currently, the CPUC assumes that measures to bring an existing building into compliance with CEC’s energy efficiency standards would have occurred absent the IOUs’ energy efficiency programs. (See figure below.)
Recently, some parties have complained that the CPUC-established baseline of energy efficiency measures prevents realization of additional, cost-effective energy savings. This is because the baseline prevents the IOUs from receiving ratepayer monies for encouraging energy-saving building measures that fall below CEC’s energy efficiency building standards. In fact, Pacific Gas and Electric (PG&E) reports the results of two studies – both commissioned by PG&E and, as yet, not reviewed by an independent third party – that show that most potential cost-effective energy efficiency savings are represented by projects that are below the CEC’s building code standards. PG&E, and others, contend that the state will not be able to attain the ambitious energy efficiency goals currently contemplated by the Legislature unless the CPUC credits the IOUs with the energy savings that result from below-code projects. Proponents additionally contend that the most cost-effective energy efficiency projects are those below the energy efficiency building standards.
High opportunity projects or programs. This bill authorizes IOUs, effective January 1, 2016, to provide financial incentives and other assistance for below-code high opportunity projects or programs. This bill directs the CPUC to provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision. This bill, however, does not define or further describe high opportunity projects and programs.
Related Legislation
AB 1094 (Williams, 2015) authorizes the CEC to analyze energy consumption of plug-in equipment and set energy efficiency targets and require the CPUC to work with the CEC to address electricity consumption by plug-in equipment. The bill was held in the Assembly Committee on Appropriations.
SB 350 (De León, 2015) enacts the Clean Energy and Pollution Reduction Act of 2015. The bill is currently under consideration by the Assembly Floor.
AB 531 (Saldana, Chapter 323, Statutes of 2009) gave the CEC authority to set a schedule for compliance with the requirements of AB 1103.
AB 1103 (Saldana, Chapter 533, Statutes of 2007) required electricity and gas utilities to maintain records of the energy consumption of all nonresidential buildings to which they provide service and to upload energy consumption data to US EPA ENERGY STAR Portfolio Manager upon authorization of a nonresidential building owner or operator. The bill also required the owner or operator of a nonresidential building to disclose the Portfolio Manager benchmarking data and ratings for the building for the most recent 12 months to a prospective buyer, lessee, or lender.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
Bay Area Regional Energy Network
Building Owners and Managers Association of California
California Building Industry Association
California Business Properties Association
California Energy Efficiency Industry Council
California Housing Partnership Corporation
California State Association of Electrical Workers
California State Council of Laborers
California State Pipe Trades Council
Center for Sustainable Energy
City of Berkeley Mayor, Tom Bates
Coalition of California Utility Employees
Commercial Real Estate Development Association
EnerNOC, Inc.
Institute of Heating & Air Conditioning Industries, Inc.
Institute of Market Transformation
International Council of Shopping Centers
Mission:data Coalition
National Association of Energy Service companies
Natural Resources Defense Council
Pacific Gas and Electric Company
San Diego Gas & Electric Company
Sempra Energy Utilities
Southern California Edison
Southern California Gas
TechNet
The Utility Reform Network
Union of Concerned Scientists
Western States Council of Sheet Metal Workers
OPPOSITION:
California Municipal Utilities Association
ARGUMENTS IN SUPPORT: The author and proponents contend the benchmarking program created by this bill will allow for better management of building energy efficiency. PG&E, Sempra Energy Utilities and Southern California Gas and Electric write in support of the energy efficiency components of this bill, contending the state will be unable to achieve its energy efficiency goals unless the IOUs are able to provide incentives and receive credit for projects to bring existing buildings up to the CEC’s energy efficiency standards for existing buildings.
ARGUMENTS IN OPPOSITION: The CMUA expresses opposition to the benchmarking provisions of this bill, which CMUA describe as violating the customer’s ownership right of energy use information.
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AB 802 (Williams) Page 4 of 4
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 802 (Williams) - Public utilities: energy efficiency savings.
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Version: September 4, 2015 |
Policy Vote: E., U., & C. 8 - 2 |
Urgency: No |
Mandate: No |
Hearing Date: September 10, 2015 |
Consultant: Marie Liu |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 802 would: (1) expand the information the California Energy Commission (CEC) may collect for the purpose of its energy industry assessments and forecasts; (2) change the disclosure requirements for building energy consumption to create a “benchmarking” program; and (3) require the California Public Utilities Commission (CPUC) to authorize an electrical or gas corporation to recover in rates financial incentives and support given for energy efficiency projects to bring an existing building into conformity with Title 24 building code standards or that produce multiyear savings.
Fiscal Impact:
Ongoing costs of $1.7 million to the Energy Resources Program Account (General Fund) for additional workload and contracts to implement the new benchmarking program and to incorporate additional energy efficiency information into the CEC’s assessments and forecasts.
Unknown costs, but at least $900,000 to the Public Utilities Reimbursement Account (special), for additional staff at the CPUC to oversee, evaluate, and review the energy efficiency program and to provide an expedited authorization of high opportunity projects.
Unknown costs, but potentially in the millions of dollars, to the General Fund and various special funds to the state as a ratepayer of investor-owned utilities for additional energy efficiency program costs.
Background:
Existing law requires the CEC to prepare a biennial integrated energy policy report (IEPR) that contains an assessment and forecast of major energy trends and issues facing the state’s electricity, natural gas, and transportation fuel sectors. This report is used to develop energy policies. To develop the IEPR, existing law gives the CEC broad authority to require the submission of various types of information to obtain the necessary data for it to perform the assessments and forecasts necessary.
Existing law establishes a benchmarking and public disclosure program, known as the “AB 1103 program,” whereby a commercial building owner must disclose energy consumption data provided by the utility to a prospective buyer, lessee, or lender.
Existing law requires that the state’s energy needs first be met by increasing energy efficiency under the “loading order.” Consistent with the loading order, existing law requires electric and gas investor-owned utilities (IOUs) to meet unmet resources with all available energy efficiency and demand reduction that is cost-effective, reliable, and feasible. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently, ratepayers pay for approximately $1 billion for financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Under the CPUC’s existing rules, the IOU’s energy savings is calculated against a baseline, which is based on (1) “natural occurring savings,” (2) standard industry practice, and (3) Title 24 energy efficiency standards for existing buildings. Thus, when the energy efficiency project involves an existing building, the actual energy efficiency savings could actually be higher, perhaps substantially higher, than the savings over the baseline.
Title 24 of the California Code of Regulations establishes building standards for energy efficiency. They were first adopted in 1978 and are currently updated approximately every three years. The standards are developed by the CEC and are applied when a building permit is issued.
Proposed Law:
This bill has three main sections. First, this bill would expand the types of information that the CEC can require to be submitted to it as necessary for the purpose of developing the IPER. The CEC would be required to maintain policies and procedures to protect consumer information from authorized disclosure of the information it receives.
Second, this bill would change the requirements for the reporting of energy consumption data for the purpose of establishing benchmarks. Specifically, this bill would repeal the AB 1103 program and instead would direct the CEC to adopt regulations to require the utilities to provide energy usage information for covered buildings to the building owner or to the CEC for public disclosure. Covered buildings would mean a building with no residential utility accounts or five or more active utility accounts, residential or nonresidential. The regulations would cover situations in which the benchmarking results can be publically disclosed. The cost to the utility to deliver usage data would be recoverable from the ratepayers. The CEC would be authorized, but not required, to also adopt regulations regarding how an owner of a non-covered building can receive customer usage data, either aggregated or on an individual basis.
Third, this bill would additionally require the CPUC in a separate or existing proceeding, by September 1, 2016, to authorize an electrical or gas corporation to recover in rates the costs from financial incentives and support given to customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, including those savings or reductions that are a result of brining an existing building into compliance with the requirements of Title 24 building code standards, and activities that are expected to produce multiyear savings. The utilities’ costs to provide such incentives and supports would.be recoverable from the ratepayers. The CPUC would be explicitly authorized to adjust energy efficiency goals or targets as a result of this change.
This bill would also authorize electrical and gas utilities to implement financial incentives for “high opportunity projects or programs” effective January 1, 2016 with “expedited authorization” from the CPUC.
Staff Comments:
To create the new benchmarking reporting program by this bill, the CEC estimates that it would need 3 PYs at a cost of $473,000 and a $500,000 contract ongoing. Additionally, this bill would require the CEC to dramatically increase the amount of information that can be incorporated into the state’s forecasting and assessments, including the IEPR report. At this time, the CEC estimate that it will need 5 PYs ongoing at an annual cost of $734,000.
Staff notes that this bill would eliminate the AB 1103 program, which should create savings to offset the costs of the new benchmarking program. However, the CEC never received positions to implement the AB 1103 program and has been using redirected positions. Therefore, the CEC does not anticipate any savings from the elimination of the program.
This bill will also result in new costs to the CPUC to oversee, and potentially approve ratepayer funding for, a large number energy efficiency projects that bring existing buildings up to existing building standards codes that would be allowed as a result of this bill. Currently, the CPUC oversees an annual energy efficiency budget of approximately $1 billion. Allowing below-code projects will very conservatively increase this budget by 50%. The CPUC estimates that such an increase in the energy efficiency program budget will necessitate a minimum of seven new positions at an ongoing annual cost of $900,000.The new positions would be required to alter many of its documents, databases, and studies that are used to guide energy efficiency policy within the CPUC. Additionally, the CPUC anticipates needing to review a large number of new efficiency pilot programs. Staff notes that recent amendments delete a provision a provision that stated the CPUC is not required to increase funding for energy efficiency programs as a result of the bill. Thus increases to the energy efficiency budget can be reasonably expected should this bill pass.
This bill also requires the CPUC to provide “expedited authorization” of “high opportunity projects.” These are undefined terms. Depending on how the CPUC intends on implementing an expedited authorization process, it may have additional costs.
The state is a ratepayer of electricity and gas. To the extent that the additional energy efficiency budget results in increased ratepayer costs, this bill would have additional costs to the state. These costs are unknown and would depend on the extent to which the CPUC approves ratepayer funds to be used for energy efficiency projects that bring existing building up to code. Billions of dollars are currently being spent to bring existing buildings up to code as a result of natural equipment turnover and building renovations. Furthermore, the benchmarking disclosures in this bill are expected to dramatically increase interest in “to-code” projects as well as availability of non-ratepayer financing of those projects. Making ratepayer funds available for these efficiency projects are likely to supplant private investments that may otherwise occur on the natural. Staff notes that it is unclear how the CPUC will determine whether the energy savings achieved through the authorized programs will count toward a IOU’s goals and targets, and therefore are should be paid by the ratepayers.
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AB 802
Page 9
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 802
Amended: 9/10/15 in Senate
SENATE ENERGY, U. & C. COMMITTEE: 9-0, 7/13/15
AYES: Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley, Wolk
NO VOTE RECORDED: Fuller, Morrell
SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza, Nielsen
NO VOTE RECORDED: Bates
SENATE ENERGY, U. & C. COMMITTEE: 8-2, 9/10/15 (pursuant to Senate Rule 29.10)
AYES: Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, Pavley, Wolk
NOES: Fuller, Morrell
NO VOTE RECORDED: McGuire
SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/10/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 74-0, 6/2/15 - See last page for vote
DIGEST: This bill addresses three distinct energy programs. First, this bill expands the types and level of information the California Energy Commission (CEC) may require to be submitted to it and requires CEC to have reasonable policies and procedures to protect customer information. Second, this bill abolishes the CEC-administered “AB 1103” program of nonresidential building energy consumption disclosure and replaces it with an energy use “benchmarking” program for larger buildings. Third, this bill requires the California Public Utilities Commission (CPUC) to authorize electrical corporations or gas corporations (IOUs) to provide incentives and assistance for measures to conform a building to CEC’s energy efficiency standards for existing buildings and to allow IOUs to recover in rates the reasonable costs of those incentives and assistance.
Existing law:
Requires the CEC biennially to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices and to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, and protect public health and safety. (Public Resources Code §25301.)
Requires each electrical and gas utility to maintain records of the energy consumption of all nonresidential buildings to which it provides service. The utility must upload energy consumption data to a database upon authorization of a nonresidential building owner or operator. The owner or operator discloses the benchmarking data and ratings for the building for the most recent 12 months to a prospective buyer, lessee, or lender. This is informally known as the “AB 1103” program. (Public Resources Code §25402.10.)
Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code §§381 and 890)
Requires electrical corporation plans to first meet unmet resource needs through all available energy efficiency, and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.5 (b)(9)(C))
Requires the CPUC to identify all potentially achievable cost-effective electricity and natural gas efficiency savings and to establish energy efficiency procurement targets and ratepayer-funded programs for IOUs. Requires a gas corporation to first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.55 and 454.56.)
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code §25943)
This bill:
Regarding CEC data collection and forecasts:
Expands the types of information the CEC, as part of its biennial energy industry assessments and forecasts, may require to be submitted to it to include individual customer historic usage and individual customer historic billing data, in a format and level of granularity specified by the CEC.
Requires the CEC to maintain reasonable policies and procedures to protect customer information from unauthorized disclosure.
Regarding benchmarking:
States that building owner should have access to their buildings’ energy use to improve building management and investment decisions, and the intent of the Legislature that the CEC create a benchmarking and disclosure program through which owners of commercial and multifamily buildings above 50,0000 square feet in gross floor area better understand their energy consumption through standardized metrics.
Abolishes the “AB 1103” program of nonresidential energy use disclosure.
Creates a new energy use benchmarking program for “covered buildings,” meaning (a) any building with no residential utility accounts, or (b) any building with five or more active utility accounts, residential or nonresidential.
Requires, beginning January 1, 2016, a utility that sells electricity, natural gas, steam, or fuel oil to a customer for end uses addressed by the United States Environmental Protection Agency’s (US EPA’s) ENERGY STAR Portfolio Manager system to maintain records for 12 calendar months of the energy usage data of all buildings to which they provide service.
Requires, beginning January 1, 2017, a utility to provide aggregated energy usage data to the owner or operator of a covered building, within four weeks of the owner or operator’s request.
Authorizes CEC to specify additional information a utility must deliver to allow benchmarking of a covered building.
Declares the building owner and utility shall not have liability for any use or disclosure by others of usage information delivered as required by this bill.
Directs CEC to adopt regulations governing the delivery to CEC of benchmarking results, which are distinct from aggregate energy usage data, and for the public disclosure of the benchmarking results
States that the reasonable cost of an IOU to deliver information as required by this bill are recoverable in rates and that the reasonable costs of a local publicly owned utility in disclosing electrical usage data pursuant to this bill may be considered “cost-effective demand-side management services to promote energy efficiency and energy conservation” and thereby reimbursable by the utility’s general fund.
Regarding energy efficiency measures for existing buildings:
Requires the CPUC, by September 1, 2016, to authorize an IOU to provide incentives for the cost of energy efficiency programs based on all estimated energy savings, including energy savings from bringing existing buildings into compliance with mandatory energy efficiency codes for existing buildings issued by the CEC, and authorizes an IOU to recover the costs in rates. States that the energy efficiency measures described above may include savings and reductions from measures to conform a building with existing energy efficiency regulation, as well as certain operational, behavioral, and retrocommissioning activities.
States that the CPUC may adjust the energy efficiency procurement targets to reflect energy efficiency savings achieved in meeting or exceeding mandatory energy efficiency codes for existing buildings.
Authorizes the IOUs, effective January 1, 2016, to provide the financial incentives and assistance described above for “high opportunity projects or programs.”
Background
CEC assessments and forecast: expanded authority. Statute requires CEC to prepare a biennial integrated energy policy report, known as the IEPR, that contains an assessment and forecast of major energy trends and issues facing the state's electricity, natural gas and transportation fuel sectors. Statute directs the CEC to use the IEPR assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure reliable, secure, and diverse energy supplies, enhance the state's economy and protect public health and safety. Statute specifically authorizes CEC to require submission of demand forecasts, resource plans, market assessments, and related outlooks. This bill expands the specific types of information CEC may compel entities to provide it to include individual customer historic electric or gas service usage, or both, and individual customer historic billing data, in a format and level of granularity specified by the commission.
Death to benchmarking. Long live benchmarking. Benchmarking compares the energy consumption per square foot of floor space for comparable classes of buildings. It is a tool for understanding the relative energy efficiency of buildings.
Under current law, CEC administers the Nonresidential Building Energy Use Program, a benchmarking and public disclosure program more commonly known as the AB 1103 program. Under the program, an owner or operator of a large commercial building must disclose energy consumption data to a prospective buyer, lessee or lender. IOUs are required to disclose the necessary data for the rankings by uploading it to the US EPA’s ENERGY STAR Portfolio Manager.
This bill replaces the AB 1103 program with a new energy use benchmarking and public disclosure program. Under this new program, a utility must maintain energy usage data for all buildings to which it provides service for at least the most recent 12 complete calendar months. The utility would need to provide the benchmark data to a building owner or operator within four weeks of request, and the CEC would develop regulations to govern delivery of benchmark data to the commission and the public disclosure of such data. This bill includes language that states the intent of the Legislature that the CEC create a benchmarking and disclosure program through which owners of commercial and multifamily buildings 50,000 square feet and larger will better understand their energy consumption through standardized energy use metrics.
Energy efficiency atop the load. The “loading order” guides the state’s energy policies and decisions according to the following order of priority: (1) decreasing energy demand by increasing energy efficiency; (2) responding to energy demand by reducing energy usage during peak hours; (3) meeting new energy generation needs with renewable resources; and (4) meeting new energy generation needs with clean fossil-fueled generation. This policy has been adopted by the energy agencies – the CEC and CPUC – and its principles guide all energy programs.
Consistent with the loading order, statute requires both electrical and gas IOUs to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable and feasible. The CPUC uses these criteria to establish energy efficiency targets for the IOUs. To achieve these targets, the IOUs (and, in some cases, community choice aggregators) administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently funded at about $1 billion per year, the programs include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Setting the bar high. According to existing CPUC rules, each IOU claims credit for energy savings from the portfolio of energy efficiency measures in its energy efficiency program. The CPUC evaluates the claimed energy savings and, after adjustment, authorizes financial rewards for the IOU.
The CPUC measures claimed savings against a baseline, which the CPUC generally defines as comprised of three factors: (1) “naturally occurring savings,” (2) standard industry practice and (3) the CEC’s Title 24 energy efficiency standards for existing buildings. The CPUC sets the baseline at this level to avoid “free ridership,” that is, credit for energy savings that would have occurred absent the IOUs’ programs. Currently, the CPUC assumes that measures to bring an existing building into compliance with CEC’s energy efficiency standards would have occurred absent the IOUs’ energy efficiency programs.
Some parties complain the CPUC-established baseline of energy efficiency measures prevents realization of additional, cost-effective energy savings. This is because the baseline prevents the IOUs from receiving ratepayer monies for encouraging energy-saving building measures that fall below CEC’s energy efficiency building standards. In fact, Pacific Gas and Electric (PG&E) reports the results of two studies – both commissioned by PG&E and, as yet, not reviewed by an independent third party – that show that most potential cost-effective energy efficiency savings are represented by projects that are below the CEC’s building code standards. Proponents contend that the most cost-effective energy efficiency projects are those below the energy efficiency building standards.
High opportunity projects or programs. This bill authorizes IOUs, effective January 1, 2016, to provide financial incentives and other assistance for below-code high opportunity projects or programs. This bill, however, does not define or further describe high opportunity projects and programs.
Related Legislation
SB 350 (De León, 2015) enacts the Clean Energy and Pollution Reduction Act of 2015. The bill is currently under consideration by the Assembly Floor.
AB 531 (Saldana, Chapter 323, Statutes of 2009) gave the CEC authority to set a schedule for compliance with the requirements of AB 1103.
AB 1103 (Saldana, Chapter 533, Statutes of 2007) required utilities to maintain records of energy consumption of all nonresidential buildings to which they provide service and to upload this data to US EPA ENERGY STAR Portfolio Manager. The bill also required the owner or operator of a nonresidential building to disclose the Portfolio Manager benchmarking data and ratings for the building to a prospective buyer, lessee, or lender.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Ongoing costs of $1.7 million to the Energy Resources Program Account (General Fund) for additional workload and contracts to implement the new benchmarking program and to incorporate additional energy efficiency information into the CEC’s assessments and forecasts.
Unknown costs, but at least $900,000 to the Public Utilities Reimbursement Account (special), for additional staff at the CPUC to oversee, evaluate, and review the energy efficiency program and to provide an expedited authorization of high opportunity projects.
Unknown costs, but potentially in the millions of dollars, to the General Fund and various special funds to the state as a ratepayer of investor-owned utilities for additional energy efficiency program costs.
Bay Area Regional Energy Network
Building Owners and Managers Association of California
California Building Industry Association
California Business Properties Association
California Energy Efficiency Industry Council
California Housing Partnership Corporation
California State Association of Electrical Workers
California State Council of Laborers
California State Pipe Trades Council
Center for Sustainable Energy
City of Berkeley Mayor, Tom Bates
Clean Power Campaign
Coalition of California Utility Employees
Commercial Real Estate Development Association
EnerNOC, Inc.
Institute of Heating & Air Conditioning Industries, Inc.
Institute of Market Transformation
International Council of Shopping Centers
Mission:data Coalition
National Association of Energy Service companies
Natural Resources Defense Council
Pacific Gas and Electric Company
San Diego Gas & Electric Company
Sempra Energy Utilities
Southern California Edison
Southern California Gas
TechNet
The Utility Reform Network
Union of Concerned Scientists
Western States Council of Sheet Metal Workers
OPPOSITION: (Verified 9/10/15)
California Municipal Utilities Association
ARGUMENTS IN SUPPORT: The author and proponents contend the benchmarking program created by this bill will allow for better management of building energy efficiency. PG&E, Sempra Energy Utilities and Southern California Gas and Electric write in support of the energy efficiency components of this bill, contending the state will be unable to achieve its energy efficiency goals unless the IOUs are able to provide incentives and receive credit for projects to bring existing buildings up to the CEC’s energy efficiency standards for existing buildings.
ARGUMENTS IN OPPOSITION: The CMUA expresses opposition to the benchmarking provisions of this bill, which CMUA describe as violating the customer’s ownership right of energy use information.
ASSEMBLY FLOOR: 74-0, 6/2/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, McCarty, Medina, Melendez, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Brough, Chang, Chávez, Grove, Mayes, Obernolte
Prepared by: Jay Dickenson / E., U., & C. / (916) 651-4107
9/10/15 23:15:31
**** END ****
AB 802
Page 7
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 802
Amended: 6/22/15 in Senate
SENATE ENERGY, U. & C. COMMITTEE: 9-0, 7/13/15
AYES: Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley, Wolk
NO VOTE RECORDED: Fuller, Morrell
SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza, Nielsen
NO VOTE RECORDED: Bates
ASSEMBLY FLOOR: 74-0, 6/2/15 - See last page for vote
SUBJECT: Public utilities: energy efficiency savings
SOURCE: Pacific Gas and Electric Company
DIGEST: This bill allows an electrical corporation or gas corporation to recover in rates the cost of programs to bring a building up to legal code and to count all energy savings achieved toward the corporation’s energy efficiency targets.
Existing law:
Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code §§381 and 890)
Requires electric corporation procurement plans to first meet unmet resource needs through all available energy efficiency, and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.5 (b)(9)(C))
Requires the California Public Utilities Commission (CPUC) to identify all potentially achievable cost-effective electricity and natural gas efficiency savings and to establish energy efficiency procurement targets and ratepayer-funded programs for electrical and gas corporations. Requires a gas corporation to first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.55 and 454.56.)
Requires the California Energy Commission (CEC) to develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas savings, establish targets for statewide annual energy efficiency savings, and demand reduction for the next 10-year period. (Public Resources Code §25310)
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code §25943)
This bill:
Requires the CPUC, by July 1, 2016, to authorize electrical corporations or gas corporations to recover from ratepayers the cost of energy efficiency programs based on all estimated energy savings, including energy savings from bringing existing buildings into compliance with mandatory energy efficiency codes for existing buildings issued by the CEC.
States that the CPUC may adjust the energy efficiency procurement targets to reflect energy efficiency savings achieved in meeting or exceeding mandatory energy efficiency codes for existing buildings.
Requires the CPUC to prioritize energy efficiency activities consistent with existing statute governing electrical corporations’ and gas corporations’ energy efficiency activities.
States that the requirements of this bill do not require the CPUC to increase funding for the electrical or gas corporations’ energy efficiency programs.
Background
Energy efficiency atop the load. The “loading order” guides the state’s energy policies and decisions according to the following order of priority: (1) decreasing energy demand by increasing energy efficiency; (2) responding to energy demand by reducing energy usage during peak hours; (3) meeting new energy generation needs with renewable resources; and (4) meeting new energy generation needs with clean fossil-fueled generation. This policy has been adopted by the energy agencies – the CEC and CPUC – and its principles guide all energy programs.
Consistent with the loading order, statute requires both electric and gas investor-owned utilities (IOUs) to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable and feasible. The CPUC uses these criteria to establish energy efficiency targets for the IOUs. To achieve these targets, the IOUs (and, in some cases, community choice aggregators) administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently funded at about $1 billion per year, the programs include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Setting the bar high. According to existing CPUC rules, each IOU claims credit for energy savings from the portfolio of energy efficiency measures in its energy efficiency program. The CPUC evaluates the claimed energy savings and, after adjustment, authorizes financial rewards for the IOU.
The CPUC measures claimed savings against a baseline, which the CPUC generally defines as being comprised of three factors: (1) “naturally occurring savings,” (2) standard industry practice and (3) the CEC’s Title 24 energy efficiency standards for existing buildings. The CPUC sets the baseline at this level to avoid “free ridership,” that is, credit for energy savings that would have occurred absent the IOUs’ energy efficiency programs. Currently, the CPUC assumes that measures to bring an existing building into compliance with CEC’s energy efficiency standard would have occurred absent the IOUs’ energy efficiency programs. (See figure below.)
Recently, some parties have complained that the CPUC-established baseline of energy efficiency measures prevents realization of additional, cost-effective energy savings. This is because the baseline prevents the IOUs from receiving ratepayer monies for encouraging energy-saving building measures that fall below CEC’s energy efficiency building standards. In fact, Pacific Gas and Electric (PG&E), this bill’s sponsor, reports the results of two studies – both commissioned by PG&E and, as yet, not reviewed by an independent third party – that show that most potential cost-effective energy efficiency savings are represented by projects that are below the CEC’s building code standards. PG&E, and others, contend that the state will not be able to attain the ambitious energy efficiency goals currently contemplated by the Legislature unless the CPUC credits the IOUs with the energy savings that result from below-code projects. Proponents additionally contend that the most cost-effective energy efficiency projects are those below the energy efficiency building standards.
Pilot projects under way. The CPUC has ordered the IOUs to implement pilot projects in which the IOUs may receive rate recovery and credit for energy savings resulting from below-code energy efficiency building upgrades. The IOUs anticipate implementing measures pursuant to the pilot projects over the next two years; analysis of results will not be complete until 2018.
In addition to the pilot projects, the CPUC is conducting a proceeding on energy efficiency. The hearing entails consideration of CPUC’s setting of the energy use baseline against which the energy savings of the IOUs’ energy efficiency programs are measured. Inherent to that consideration is evaluation of the specific proposal advanced by this bill, namely, allowing the IOUs to receive credit for energy savings resulting from below-code energy efficiency building upgrades.
Claiming versus counting. This bill requires the CPUC to authorize an IOU to count all energy savings achieved toward overall energy efficiency goals or targets established by the commission. This requirement departs from existing practice, by which an IOU claims energy savings from energy efficiency measures and the CPUC assesses and adjusts those claims.
Related Legislation
AB 1330 (Bloom, 2015) establishes an energy efficiency resources standard. The bill is currently under consideration by the Senate Floor.
AB 1094 (Williams, 2015) authorizes the CEC to analyze energy consumption of plug-in equipment and set energy efficiency targets and require the CPUC to work with the CEC to address electricity consumption by plug-in equipment. The bill was held in the Assembly Committee on Appropriations.
SB 350 (De León, 2015) enacts the Clean Energy and Pollution Reduction Act of 2015. The bill is currently under consideration by the Assembly Floor.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Unknown costs, but likely in the low millions of dollars, to the Public Utilities Reimbursement Account (special), for additional staff at the CPUC to oversee, evaluate, and review the energy efficiency program.
Unknown costs, but potentially in the millions of dollars, to the General Fund and various special funds to the state as a ratepayer of investor-owned utilities for additional energy efficiency program costs.
Pacific Gas and Electric Company (source)
Bay Area Regional Energy Network
California Building Industry Association
California Business Properties Association
California State Association of Electrical Workers
California State Pipeline Trades Council
City of Santa Monica
Coalition of California Utility Employees
Environmental Defense Fund
Local Government Sustainable Energy Coalition
Marin Clean Energy
National Association of Energy Service Companies
Natural Resources Defense Council
Northern California Power Agency
San Diego Gas & Electric Company
Sempra Energy utilities
Sierra Club California
Southern California Edison
Southern California Gas Company
The Energy Coalition
Union of Concerned Scientists
Western States Council of Sheet Metal Workers
OPPOSITION: (Verified 8/28/15)
California Energy Efficiency Industry Council
Office of Ratepayer Advocates
ARGUMENTS IN SUPPORT: According to the proponents, existing policy leads to a large pool of stranded energy efficiency savings potential – the actual energy savings from the building’s existing equipment to the Title 24 code baseline – and significant energy waste. This policy hinders the state from achieving the governor’s 2030 climate commitment to double energy savings in existing buildings.
ARGUMENTS IN OPPOSITION: According to the opponents, the assumption that new buildings and equipment meet code is generally a good one. Were the CPUC to count energy efficiency savings based on existing conditions, as suggested by this bill, much of that energy efficiency will not be incremental to what would have occurred otherwise. As a result, ratepayers will likely pay more while achieving only minimal energy efficiency savings.
ASSEMBLY FLOOR: 74-0, 6/2/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, McCarty, Medina, Melendez, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Brough, Chang, Chávez, Grove, Mayes, Obernolte
Prepared by: Jay Dickenson / E., U., & C. / (916) 651-4107
8/31/15 15:47:13
**** END ****
AB 802 (Williams) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 802 (Williams) - Public utilities: energy efficiency savings.
|
|
Version: June 22, 2015 |
Policy Vote: E., U., & C. 9 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: August 17, 2015 |
Consultant: Marie Liu |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 802 would require the California Public Utilities Commission (CPUC) to authorize an electrical or gas corporation to recover in rates financial incentives and support given to customers to increase the energy efficiency of existing buildings based on all energy savings and use reductions, even those measures that bring an existing building into conformity with Title 24 building code standards for new buildings.
Fiscal Impact:
Unknown costs, but likely in the low millions of dollars, to the Public Utilities Reimbursement Account (special), for additional staff at the CPUC to oversee, evaluate, and review the energy efficiency program.
Unknown costs, but potentially in the millions of dollars, to the General Fund and various special funds to the state as a ratepayer of investor-owned utilities for additional energy efficiency program costs.
Background:
Existing law requires that the state’s energy needs first be met by increasing energy efficiency under the “loading order.” Consistent with the loading order, existing law requires electric and gas investor-owned utilities (IOUs) to meet unmet resources with all available energy efficiency and demand reduction that is cost-effective, reliable, and feasible. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently, ratepayers pay for approximately $1 billion for financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Under the CPUC’s existing rules, the IOU’s energy savings is calculated against a baseline, which is based on (1) “natural occurring savings,” (2) standard industry practice, and (3) Title 24 energy efficiency standards for existing buildings. Thus, when the energy efficiency project involves an existing building, the actual energy efficiency savings could actually be higher, perhaps substantially higher, than the savings over the baseline.
Title 24 of the California Code of Regulations establishes building standards for energy efficiency. They were first adopted in 1978 and are currently updated approximately every three years. The standards are developed by the California Energy Commission (CEC) and are applied when a building permit is issued.
Proposed Law:
This bill would require the CPUC in a separate or existing proceeding, by July 1, 2016, to authorize an electrical or gas corporation to recover in rates the costs from financial incentives and support given to customers to increase the energy efficiency of existing buildings based on all estimated energy savings and energy usage reductions, including those savings or reductions that are a result of brining an existing building into compliance with the requirements of Title 24 building code standards.
Staff Comments:
This bill would dramatically increase the number of projects that are seen as cost effective, and therefore could increase the CPUC’s energy efficiency budget from approximately $1 billion to approximately $3.3 billion. The CPUC estimates that it would need between 12 and 24 new positions at an annual cost of $1.4-$2.8 million dollars. The new positions would be required to alter many of its documents, databases, and studies that are used to guide energy efficiency policy within the CPUC. Additionally, the CPUC anticipates needing to review a large number of new efficiency pilot programs.
The state is a ratepayer of electricity and gas. To the extent that the additional energy efficiency budget results in increased ratepayer costs, this bill would have additional costs to the state. Given that the CPUC estimates that the energy efficiency budget might grow to $3.3 billion under this bill, state ratepayer costs could be in the millions of dollars.
-- END --
AB 802 (Williams) Page 7 of 7
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: AB 802 Hearing Date: 7/13/2015
Author: |
Williams |
||
Version: |
6/22/2015 As Amended |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Jay Dickenson |
||
SUBJECT: Public utilities: energy efficiency savings
DIGEST: This bill allows an electrical corporation or gas corporation to recover in rates the cost of programs to bring a building up to legal code and to count all energy savings achieved toward the corporation’s energy efficiency targets.
ANALYSIS:
Existing law:
Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code §§381 and 890)
Requires electric corporation procurement plans to first meet unmet resource needs through all available energy efficiency, and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.5 (b)(9)(C))
Requires the California Public Utilities Commission (CPUC) to identify all potentially achievable cost-effective electricity and natural gas efficiency savings and to establish energy efficiency procurement targets and ratepayer-funded programs for electrical and gas corporations. Requires a gas corporation to first meet its unmet resource needs through all available natural gas efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §§454.55 and 454.56.)
Requires the California Energy Commission (CEC) to develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas savings, establish targets for statewide annual energy efficiency savings, and demand reduction for the next 10-year period. (Public Resources Code §25310)
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code §25943)
This bill:
Requires the CPUC, by July 1, 2016, to authorize electrical corporations or gas corporations to recover from ratepayers the cost of energy efficiency programs based on all estimated energy savings, including energy savings from bringing existing buildings into compliance with mandatory energy efficiency codes for existing buildings issued by the CEC.
States that the CPUC may adjust the energy efficiency procurement targets to reflect energy efficiency savings achieved in meeting or exceeding mandatory energy efficiency codes for existing buildings.
Requires the CPUC to prioritize energy efficiency activities consistent with existing statute governing electrical corporations’ and gas corporations’ energy efficiency activities.
States that the requirements of this bill do not require the CPUC to increase funding for the electrical or gas corporations’ energy efficiency programs.
Background
Energy efficiency atop the load. The “loading order” guides the state’s energy policies and decisions according to the following order of priority: (1) decreasing energy demand by increasing energy efficiency; (2) responding to energy demand by reducing energy usage during peak hours; (3) meeting new energy generation needs with renewable resources; and (4) meeting new energy generation needs with clean fossil-fueled generation. This policy has been adopted by the energy agencies – the CEC and CPUC – and its principles guide all energy programs.
Consistent with the loading order, statute requires both electric and gas investor-owned utilities (IOUs) to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable and feasible. The CPUC uses these criteria to establish energy efficiency targets for the IOUs. To achieve these targets, the IOUs (and, in some cases, community choice aggregators) administer energy efficiency programs with ratepayer funds approved by the CPUC. Currently funded at about $1 billion per year, the programs include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.
Setting the bar high. According to existing CPUC rules, each IOU claims credit for energy savings from the portfolio of energy efficiency measures in its energy efficiency program. The CPUC evaluates the claimed energy savings and, after adjustment, authorizes financial rewards for the IOU.
The CPUC measures claimed savings against a baseline, which the CPUC generally defines as being comprised of three factors: (1) “naturally occurring savings,” (2) standard industry practice and (3) the CEC’s Title 24 energy efficiency standards for existing buildings. The CPUC sets the baseline at this level to avoid “free ridership,” that is, credit for energy savings that would have occurred absent the IOUs’ energy efficiency programs. Currently, the CPUC assumes that measures to bring an existing building into compliance with CEC’s energy efficiency standard would have occurred absent the IOUs’ energy efficiency programs. (See figure below.)
Recently, some parties have complained that the CPUC-established baseline of energy efficiency measures prevents realization of additional, cost-effective energy savings. This is because the baseline prevents the IOUs from receiving ratepayer monies for encouraging energy-saving building measures that fall below CEC’s energy efficiency building standards. In fact, Pacific Gas and Electric (PG&E), this bill’s sponsor, reports the results of two studies – both commissioned by PG&E and, as yet, not reviewed by an independent third party – that show that most potential cost-effective energy efficiency savings are represented by projects that are below the CEC’s building code standards. PG&E, and others, contend that the state will not be able to attain the ambitious energy efficiency goals currently contemplated by the Legislature unless the CPUC credits the IOUs with the energy savings that result from below-code projects. Proponents additionally contend that the most cost-effective energy efficiency projects are those below the energy efficiency building standards.
Going lower; getting higher. According to the author and sponsor, this bill is to enable greater amounts of energy savings than would occur absent this bill to help achieve the energy efficiency goals outlined in the governor’s state-of-the state speech. Indeed, the sponsor anticipates the CPUC will significantly increase energy efficiency targets in light of the programmatic changes required by this bill.
Allowing IOUs credit for below-code energy efficiency building upgrades may indeed lead to additional energy savings, and a more cost-effective energy efficiency portfolio. However, it is conceivable that the state may realize fewer energy savings than it otherwise would, depending upon many factors, including consequences unanticipated by either the author or bill proponents. For example, energy efficiency program money may go towards a significant number of below-code projects that would have happened without IOU incentive. Absent additional funding, such free-rider projects could displace above-code projects that would have provided truly additional energy savings.
In recognition of both the potential for additional energy savings and for unanticipated consequences, the CPUC has ordered the IOUs to implement pilot projects in which the IOUs may receive rate recovery and credit for energy savings resulting from below-code energy efficiency building upgrades. The IOUs anticipate implementing measures pursuant to the pilot projects over the next two years; analysis of results will not be complete until 2018.
In addition to the pilot projects, the CPUC is conducting a proceeding on energy efficiency. The hearing entails consideration of CPUC’s setting of the energy use baseline against which the energy savings of the IOUs’ energy efficiency programs are measured. Inherent to that consideration is evaluation of the specific proposal advanced by this bill, namely, allowing the IOUs to receive credit for energy savings resulting from below-code energy efficiency building upgrades.
Further, as mentioned above, neither the CPUC nor any other independent third-party has reviewed the PG&E-commissioned studies that PG&E points to as validation of the approach advocated by this bill. It seems wise to allow modification of the IOUs energy efficiency programs to be informed by such a review and assessment. The CPUC energy efficiency hearing seems the appropriate venue for such review and assessment to occur.
In any case, this analysis, in keeping with the intent of the author, assumes the CPUC, in making the program changes required by this bill and future decisions on rate recovery, will not hinder the achievement of energy efficiency measures that are cost effective, reliable, and feasible, in keeping with current law.
Claiming versus counting. This bill requires the CPUC to authorize an IOU to count all energy savings achieved toward overall energy efficiency goals or targets established by the commission. This requirement departs from existing practice, by which an IOU claims energy savings from energy efficiency measures and the CPUC assesses and adjusts those claims. This bill requires CPUC to adjust the baseline against which it measures energy savings. However, it is not clear why the CPUC also must adjust the processes by which it validates energy savings claims.
Prior/Related Legislation
AB 1330 (Bloom, 2015) establishes an energy efficiency resources standard. The bill is currently under consideration by this committee.
AB 1094 (Williams, 2015) authorizes the CEC to analyze energy consumption of plug-in equipment and set energy efficiency targets and require the CPUC to work with the CEC to address electricity consumption by plug-in equipment. The bill was held in the Assembly Committee on Appropriations.
SB 350 (De León, 2015) enacts the Clean Energy and Pollution Reduction Act of 2015. The bill is scheduled to be heard July 13th in the Assembly Committee on Natural Resources.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
ASSEMBLY VOTES:
Assembly Floor (74-0)
Assembly Appropriations Committee (17-0)
Assembly Utilities and Commerce Committee (15-0)
SUPPORT:
Pacific Gas and Electric Company (source)
Bay Area Regional Energy Network
California Building Industry Association
California Business Properties Association
California State Association of Electrical Workers
California State Pipeline Trades Council
Coalition of California Utility Employees
Environmental Defense Fund
Local Government Sustainable Energy Coalition
Marin Clean Energy
National Association of Energy Service Companies
Natural Resources Defense Council
San Diego Gas & Electric Company
Sempra Energy utilities
Sierra Club California
Southern California Edison
Southern California Gas Company
The Energy Coalition
Union of Concerned Scientists
Western States Council of Sheet Metal Workers
OPPOSITION:
California Energy Efficiency Industry Council, unless amended
Office of Ratepayer Advocates
ARGUMENTS IN SUPPORT: According to the proponents, existing policy leads to a large pool of stranded energy efficiency savings potential – the actual energy savings from the building’s existing equipment to the Title 24 code baseline – and significant energy waste. This policy hinders the state from achieving the governor’s 2030 climate commitment to double energy savings in existing buildings.
ARGUMENTS IN OPPOSITION: According to the opponents, the assumption that new buildings and equipment meet code is generally a good one. Were the CPUC to count energy efficiency savings based on existing conditions, as suggested by this bill, much of that energy efficiency will not be incremental to what would have occurred otherwise. As a result, ratepayers will likely pay more while achieving only minimal energy efficiency savings.
-- END --
AB 802
Page 2
ASSEMBLY THIRD READING
AB 802
(Williams)
As Amended May 28, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Utilities |
15-0 |
Rendon, Patterson, Achadjian, Bonilla, Burke, Dahle, Eggman, Cristina Garcia, Hadley, Roger Hernández, Obernolte, Quirk, Santiago, Ting, Williams |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Requires the California Public Utilities Commission (CPUC) to authorize electrical or gas corporations to recover the reasonable costs of energy efficiency programs in their rates. Specifically, this bill:
Requires the CPUC to authorize the inclusion of reasonable costs for energy efficiency incentive or rebate programs for existing buildings in a separate or existing proceeding by July 1, 2016.
Requires the CPUC to authorize electrical and gas corporations to count all energy savings achieved toward overall energy efficiency goals or targets established by the CPUC.
Authorizes the CPUC to adjust the energy efficiency goals and targets of electrical and gas corporations to reflect the energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings.
Specifies this bill does not require the CPUC to increase funding for energy efficiency programs.
FISCAL EFFECT:
Increased annual costs to the CPUC (special fund) in the range of $1.4 million to $2.8 million for staffing to provide oversight
Potential increased customer rates offset by potential energy reductions.
The CPUC establishes the budgets for the ratepayer funded incentive programs. This bill does not require an increase in those budgets, thus a rate increase is not guaranteed. Instead, the CPUC could incorporate the provisions of this bill into the existing program portfolio and reduce or de-fund less productive programs.
COMMENTS:
Purpose. According to the author, current policy leads to a large pool of stranded energy efficiency savings potential because program administrators can only target energy savings attributable to the installation of equipment above current code levels. This bill will allow electrical and gas corporations to provide incentives for any improvements and count all savings that show up at the meter as decreased use, including savings achieved by process changes and maintenance.
Background. Two recently completed studies in the Pacific Gas and Electric (PG&E) service area found that the savings potential for bringing a building to current code standards are higher than the potential savings from above-code only programs. One study found that as much as 75% of potential savings were stranded under current policies. The second study found similar results: 71% of the total potential electric savings, equating to 781 gigawatt hours, were below-code, while the remainder was above-code.
Under the current code baseline rules, in most cases, investor owned utilities (IOUs) can only offer an incentive for the portion of savings that occurs from code to super-efficient.
PG&E found that this is particularly challenging for schools receiving funding under Proposition 39, which also adopts the above-code approach to funding energy efficiency improvements at schools.
PG&E found through a 2006 survey of existing site conditions at 19 schools; two of the 19 schools are more efficient than code, while the remainder range from slightly less efficient to significantly less efficient. The survey also found the least efficient schools are poor candidates for IOU programs because the majority of the savings potential cannot be counted or receive incentives, leaving these schools with a significant investment of their own before they could benefit from incentive assistance.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083 FN: 0000704
AB 802
Page 2
Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 802
(Williams) – As Amended May 1, 2015
Policy Committee: |
Utilities and Commerce |
Vote: |
15-0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the Public Utilities Commission (PUC) to authorize electrical or gas corporations to recover the reasonable costs of energy efficiency programs in their rates. Specifically, this bill:
Requires the PUC to authorize the inclusion of reasonable costs for energy efficiency incentive or rebate programs for existing buildings in a separate or existing proceeding by July 1, 2016.
Requires the PUC to authorize electrical and gas corporations to count all energy savings achieved toward overall energy efficiency goals or targets established by the PUC.
Authorizes the PUC to adjust the energy efficiency goals and targets of electrical and gas corporations to reflect the energy savings achieved in meeting or exceeding energy efficiency requirements in existing buildings.
FISCAL EFFECT:
Increased annual costs to the PUC (special fund) in the range of $1.4 million to $2.8 million for staffing to provide oversight, evaluation and the review of energy efficiency programs.
This bill may result in a substantial shift in the way the PUC calculates energy efficiency savings and may require staff to alter documents, databases, and studies including the Energy Efficiency Policy Manual, the California Energy Efficiency Evaluation Protocols, the Database for Energy Efficiency Resources, and the Potential & Goals study.
Potential increased customer rates offset by potential energy reductions.
The CPUC establishes the budgets for the ratepayer funded incentive programs. This bill does not require an increase in those budgets, thus a rate increase is not guaranteed. Instead, the PUC could incorporate the provisions of this bill into the existing program portfolio and reduce or de-fund less productive programs.
COMMENTS:
Purpose. According to the author, current policy leads to a large pool of stranded energy efficiency savings potential because program administrators can only target energy savings attributable to the installation of equipment above current code levels. This bill will allow electrical and gas corporations to provide incentives for any improvements and count all savings that show up at the meter as decreased use, including savings achieved by process changes and maintenance.
Background. Two recently completed studies in the PG&E service area found that the savings potential for bringing a building to current code standards are higher than the potential savings from above-code only programs. One study found that as much as 75% of potential savings were stranded under current policies. The second study found similar results: 71% of the total potential electric savings, equating to 781 gigawatt hours (GWh), were below-code, while the remainder was above-code.
Under the current code baseline rules, in most cases, investor owned utilities (IOUs) can only offer an incentive for the portion of savings that occurs from code to super-efficient.
Pacific Gas & Electric (PG&E) found that this is particularly challenging for schools receiving funding under Proposition 39, which also adopts the above-code approach to funding energy efficiency improvements at schools:
PG&E found through a 2006 survey of existing site conditions at 19 schools; two of the 19 schools are more efficient than code, while the remainder range from slightly less efficient to significantly less efficient. The survey also found least efficient schools are poor candidates for investor owned utility programs because the majority of the savings potential cannot be counted or receive incentives, leaving these schools with a significant investment of their own before they could benefit from incentive assistance.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
AB 802
Page 4
Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
AB 802
(Williams) – As Amended April 20, 2015
SUBJECT: Public utilities: energy efficiency savings
SUMMARY: This bill requires the California Public Utilities Commission (CPUC) to modify its cost effectiveness evaluation for energy efficiency savings. Specifically, this bill:
Declares the intent of the Legislature to enact legislation requiring that all applicable state and federal contractor qualifications, licensing, certifications, and wages appropriate for the work to be performed are followed for any energy efficiency retrofit and installation project funded by ratepayers.
Requires the CPUC to consider total energy savings to be the difference between the energy usage after the installation of the energy efficiency measure funded by ratepayer-funded incentives or rebates and the energy usage without that energy efficiency measure.
EXISTING LAW:
Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code Sections 381 and 890)
Requires electric corporation procurement plans to first meet its unmet resource needs through all available energy efficiency, and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code Sections 454.5 (b)(9)(C))
Requires the CPUC to establish targets for all potentially achievable cost-effective electricity and gas efficiency savings. (Public Utilities Code Sections 454.55 and 454.56)
Requires the California Energy Commission (CEC) to develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas savings, establish targets for statewide annual energy efficiency savings, and demand reduction for the next 10-year period. (Public Resources Code Section 25310)
Requires the CEC to adopt cost-effective energy and water efficiency standards for new buildings and appliances. (Public Resources Code Section 25402)
Prohibits the sale of new appliances that do not meet the energy and water efficiency standards adopted by the CEC. (Public Resources Code Section 25402(c)(2))
Requires the CEC to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code Section 25943)
FISCAL EFFECT: Unknown.
COMMENTS:
Author's Statement. "Current policy leads to a large pool of stranded energy efficiency savings potential because program administrators can only target energy savings attributable to the installation of equipment above current code levels. Under this policy, bringing older buildings up to and eventually beyond current code levels is difficult."
"Existing data demonstrates that to-code savings are significantly larger than the above-code savings. Further, for customers with inefficient equipment, poorly tuned buildings, or behaviorally driven over-consumption, the incentive amount investor owned utilities (IOUs) can offer isn’t enough to motivate the upgrades and changes in practice required, as the portion of the costs for which no incentive is available may be substantial. This results in deferred projects and stranded savings potential."
"AB 802 will allow IOUs to provide incentives for improvements from existing conditions and count all savings that show up at the meter as decreased use, including savings achieved by process changes and maintenance. Authorizing this flexibility means California can take a significant step toward 2030 climate goals."
Governor's 2015 Inaugural Address calls for Energy Efficiency. In the Governor's Inaugural Address on January 5, 2015, he stated in his comments on reducing carbon pollutions and limiting greenhouse gas emissions:
"In fact, we are well on our way to meeting our AB 32 goal of
reducing carbon pollution and limiting the emissions of heat-trapping
gases to 431 million tons by 2020. But now, it is time to establish
our next set of objectives for 2030 and beyond.
Toward
that end, I propose three ambitious goals to be accomplished within
the next 15 years:
Increase from one-third to 50 percent our electricity derived from renewable sources;
Reduce today’s petroleum use in cars and trucks by up to 50 percent;
Double the efficiency of existing buildings and make heating fuels cleaner."
New Approach to Energy Efficiency Programs. The goal of the current ratepayer funded program is framed around an attempt by the CPUC to preserve the use of ratepayer funding for those energy efficiency improvements would be above and beyond that which is naturally going to occur when consumers replace appliances or make building improvements (from CPUC Decision D.14-10-046):
Goal of ratepayer funded programs is to generate savings above and beyond those that would happen organically, i.e., incremental savings, and lead customers to save energy in ways that they would not have absent the incentive
Using a code baseline is one way to ensure that programs do not pay for, and PAs are not devoting resources to savings that would have occurred anyway, even without a program
Customers are generally legally obliged to meet code requirements when replacing a burned-out piece of equipment, when engaging in a normal retrofit, and in new construction
Use of code baseline harmonizes with the CEC and CAISO energy demand forecast
This same CPUC decision (D.14-10-046) directs the IOUs to implement a “to-code” pilot program to better understand the extent to which there is below-code equipment that is not getting replaced quickly enough through natural turnover or existing programs. The pilot will assess whether ratepayer-funded programs can be developed to target this equipment when customer incentives are made available based on to-code, in addition to above code, savings, and PAs receive savings credit.
Studies show "stranded" energy efficiency opportunities. Two recently completed studies in the PG&E service area found that the savings potential for bringing a building to current code standards are higher than the potential savings from above-code only programs. One study found that as much as 75% of potential savings were stranded under current policies. The second study found similar results: 71% of the total potential electric savings, equating to 781 gigawatt hours (GWh), were below-code, while the remainder was above-code.
Under the current code baseline rules, in most cases, investor owned utilities (IOUs) can only offer an incentive for the portion of savings that occurs from code to super-efficient. This dynamic leads to perverse incentives in which the least efficient schools may become stranded opportunities.
Pacific Gas & Electric (PG&E) found that this is particularly challenging for schools receiving funding under Proposition 39, which also adopts the above-code approach to funding energy efficiency improvements at schools: PG&E found through a survey of existing site conditions at 19 schools conducted in 2006 in PG&E’s service territory that:
Two of the nineteen schools are more efficient than code, while the remainder range from slightly less efficient to significantly less efficient.
The least efficient schools are poor candidates for investor owned utility programs because the majority of the savings potential cannot be counted or incented, leaving these schools with a significant investment of their own before they could benefit from incentive assistance.
Rate increase? The CPUC establishes the budgets for the ratepayer funded incentive programs. The bill does not require nor does it suggest an increase in those budgets, thus a rate increase is unlikely if AB 802 becomes law. The CPUC could incorporate the provisions of AB 802 into the existing program portfolio and make decisions on reducing or de-funding less productive programs.
Bonus Shareholder Incentive? Beginning in 2007 the CPUC authorized a "risk reward incentive mechanism," which rewards or penalizes utilities based on evaluated energy savings for their performance administering energy efficiency programs. Because AB 802 has the potential to produce significant savings it could lead to a bonus in the incentive mechanism as a result of the IOUs achieving greater levels of energy efficiency. AB 802 does not require the CPUC to specify a certain level of shareholder incentive for this program and does not prescribe that the CPUC provide the same incentive as if currently allowed. In fact, if the program authorized by AB 802 is able to yield savings at a lower cost, it is logical the CPUC could reduce the level of shareholder incentive that it awards to the IOUs.
Legislative intent. AB 802 provides Legislative intent that ratepayer funded energy efficiency projects are subject to all applicable state and federal contractor qualifications, licensing, certifications, and wages appropriate for the work to be performed. This provision clarifies that the CPUC shall ensure that the ratepayer funded programs that it authorizes shall follow these state rules however it is not clear who would enforce the provisions of this section of the bill.
Support and opposition.
PG&E supports AB 802 but is concerned that the intent language with respect to compliance with state laws could put PG&E in a position of enforcing contractor qualifications, licensing, certification and wages and that this could increase program cost and reduce funding available for energy efficiency.
Related Legislation
AB 1330 (Bloom, 2015) establishes an energy efficiency resources standard. Currently in Appropriations Committee.
AB 1094 (Williams) authorizes the California Energy Commission to analyze energy consumption of plug in equipment and set energy efficiency targets and require the CPUC to work with the Energy Commission to address electricity consumption by plug in equipment. Currently in Natural Resources Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California State Association of electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Works
Coalition of California Utility Employees
PG&E (if amended)
Opposition
None on file
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
Discussed in Hearing
1MIN
Assembly Floor
18MIN
Senate Floor
22MIN
Senate Standing Committee on Energy, Utilities and Communications
6MIN
Senate Standing Committee on Appropriations
30SEC
Senate Standing Committee on Appropriations
10MIN
Senate Standing Committee on Energy, Utilities and Communications
1MIN
Assembly Floor
Bill Author
Bill Co-Author(s):