AB 3121: Public utilities: incentive programs.

Existing law establishes the Multifamily Affordable Housing Solar Roofs Program. Existing law requires the Public Utilities Commission (PUC), as part of the program, to authorize the award of monetary incentives for qualifying solar energy systems, as defined, that are installed on multifamily residential properties of at least 5 rental housing units that are operated to provide deed-restricted low-income residential housing, as defined, and that meet one or more specified requirements, as provided. Existing law requires the PUC to annually authorize the allocation of $100,000,000 or 66.67% of available funds, whichever is less, beginning with the fiscal year commencing July 1, 2016, and ending with the fiscal year ending June 30, 2020, to the program from certain greenhouse gas allowance revenues received by electrical corporations and set aside for clean energy and energy efficiency projects, as provided. Existing law requires the PUC to continue authorizing the allocation of these funds through June 30, 2026, if the PUC determines that revenues are available after 2020 and that there is adequate interest and participation in the program. Existing law requires the PUC to evaluate the program every 3 years and requires the PUC to make necessary adjustments to the program to ensure that the goals of the program are being met, as specified. Existing law authorizes the PUC to credit uncommitted funds back to ratepayers if the PUC, upon review, finds that there is insufficient participation in the program.

This bill would require the PUC to credit no more than ¹/₂ of the program funds that are unencumbered as of January 1, 2025, back to the residential retail customers of electrical corporations, as specified.

Existing law states the intent of the Legislature that the self-generation incentive program increase the deployment of distributed generation and energy storage systems to facilitate, among other things, the integration of those resources into the electrical grid. Existing law authorizes the PUC, in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and until December 31, 2024, to authorize the annual collection of not more than double the amount authorized for the self-generation incentive program in 2008. Existing law requires the PUC to administer the self-generation incentive program until January 1, 2026. Existing law requires the PUC, on January 1, 2026, to provide repayment of all unallocated funds collected to reduce ratepayer costs.

This bill would additionally require the PUC, on January 1, 2025, to initiate a process to provide repayment to residential customers of all unreserved funds as of January 1, 2025, that were collected to reduce ratepayer costs.

Existing law requires the PUC to require those electrical corporations with 250,000 or more customer accounts in the state, and those gas corporations with 400,000 or more customer accounts in the state, to establish the joint School Energy Efficiency Stimulus Program within each of their energy efficiency portfolios and to file a joint advice letter by February 1, 2021, to fund the program as part of each of their energy efficiency portfolios. Existing law requires that the School Energy Efficiency Stimulus Program be a joint program among all the participating utilities, be consistent across the utility territories, and be designed, administered, and implemented by the Energy Commission as the program administrator. Existing law requires all allocated funds to be spent or returned to the electrical corporation or gas corporation by December 1, 2026. Existing law authorizes the Energy Commission to set application and encumbrance deadlines to ensure that the reversion of funds occurs by December 1, 2026.

This bill instead would set the application deadline for program funds as July 1, 2024, and would require any funds remaining as of that date to be returned to the electrical corporation or gas corporation and distributed to residential customers as a bill credit, as determined by the PUC. The bill would require all allocated funds that are not spent by December 1, 2026, to be returned to the electrical corporation or gas corporation and distributed to residential customers as a bill credit, as determined by the PUC.

Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because certain of the above-described provisions would be part of the act and a violation of a PUC action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.

This bill would incorporate additional changes to Section 2870 of the Public Utilities Code proposed by SB 1118 to be operative only if this bill and SB 1118 are enacted and this bill is enacted last.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.