SB 755: Energy efficiency and building decarbonization programs.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-07-12
Current Status:
Failed
(2023-09-01: September 1 hearing: Held in committee and under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The state Energy Commission must create a public one‑stop website where California residents can find and apply online for energy efficiency and programs that make buildings cleaner and use less fossil fuel, run by the Energy Commission, federal and local agencies, and nonprofit groups. With a user’s consent the site will let people enter basic details (name, address, income) to auto‑fill applications, may link to but will not include programs run by the Public Utilities Commission, and will be updated yearly with outreach to disadvantaged communities.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the states energy policies. Existing law requires certain state agencies, including the Energy Commission, to develop and implement various energy efficiency programs.
This bill, the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023, would require the Energy Commission to develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the Energy Commission, a federal or local governmental agency, or a nonprofit organization agencies, and nonprofit organizations that are available in the state for residential buildings and residential electricity customers, as specified. The bill would require the Energy Commission to enable customer application for the included programs through the internet website. The bill would prohibit including energy efficiency and building decarbonization programs established or administered by the Public Utilities Commission on the internet website, but would authorize the Energy Commission to provide a link to programs that cannot be included.
Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the states energy policies. Existing law requires certain state agencies, including the commission, Energy Commission, to develop and implement various energy efficiency programs.
This bill, the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023, would require the commission Energy Commission to develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the commission Energy Commission, a federal or local governmental agency, or a nonprofit organization that are available in the state for residential buildings and residential electricity customers, as specified. The bill would require the commission Energy Commission to enable customer application for the included programs through the internet website. For programs the commission determines cannot be included in the internet website, including programs not administered by the commission, the bill would authorize the commission to provide a link to those programs. The bill would prohibit including programs established or administered by the Public Utilities Commission on the internet website, but would authorize the Energy Commission to provide a link to programs that cannot be included.
Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the states energy policies. Existing law requires the development and implementation of various energy efficiency programs in the state, to be administered by certain state agencies including the Public Utilities Commission and the Department of Community Services and Development. Existing law requires certain state agencies, including the commission, to develop and implement various energy efficiency programs.
This bill, the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023, would require the Energy Commission commission to develop and make publicly available an internet website for all energy efficiency and building decarbonization programs administered by the commission that are available in the state for residential buildings and residential electricity customers, as specified. The bill would require the internet website to include specified programs, and would require customers to be able to apply commission to enable customer application for the included programs through the internet website. For programs the Energy Commission commission determines cannot be included in the internet website, including programs not administered by the commission, the bill would require the Energy Commission authorize the commission to provide a link and any additional information to users who qualify for those programs, as specified. to those programs.
Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the states energy policies. Existing law requires the development and implementation of various energy efficiency programs in the state, to be administered by certain state agencies including the Public Utilities Commission and the Department of Community Services and Development.
This bill, the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023, would require the Energy Commission to develop and make publicly available an internet website for all energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers, as specified. The bill would require the internet website to include specified programs, and would require customers to be able to apply for the included programs through the internet website. For programs the Energy Commission determines cannot be included in the internet website, the bill would require the Energy Commission to provide a link and any additional information to users who qualify for those programs, as specified.
Existing law requires the Department of Real Estate to develop a booklet to educate and inform consumers on, among other things, common environmental hazards that are located on, and affect, real property. Existing law requires the types of common environmental hazards to include, but not be limited to, asbestos, radon gas, lead-based paint, formaldehyde, fuel and chemical storage tanks, and water and soil contamination.This bill would express the intent of the Legislature to enact legislation that requires that properties being offered for sale or lease include information that aids purchasers or renters in assessing the costs of climate mitigation and adaptation, as specified.Existing law requires the Department of Real Estate to develop a booklet to educate and inform consumers on, among other things, common environmental hazards that are located on, and affect, real property. Existing law requires the types of common environmental hazards to include, but not be limited to, asbestos, radon gas, lead-based paint, formaldehyde, fuel and chemical storage tanks, and water and soil contamination.
This bill would express the intent of the Legislature to enact legislation that requires that properties being offered for sale or lease include information that aids purchasers or renters in assessing the costs of climate mitigation and adaptation, as specified.
This act shall be known, and may be cited, as the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023.
SEC. 2.It is the intent of the Legislature to improve the distribution and access to state and federal programs for energy efficiency and building decarbonization programs by streamlining current and future investments, opportunities, and financing into a one-stop shop application for programs administered by the State Energy Resources Conservation and Development Commission, a federal or local governmental agency, or a nonprofit organization. agencies, and nonprofit organizations.
SEC. 3.Section 25237 is added to the Public Resources Code, to read:25237.(a)The commission shall develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the commission, a federal or local governmental agency, or a nonprofit organization agencies, and nonprofit organizations that are available in the state for residential buildings and residential electricity customers. The internet website shall be capable of gathering information, including, but not limited to, the name, address, and income, from a user and autopopulating the inputted information in applications to participate in those programs administered by the commission, a federal or local governmental agency, or a nonprofit organization for which the user is qualified. The commission shall ensure the internet website requires the applicants consent before the applicant inputs the information.
(b)(1)For purposes of subdivision (a), the commission shall consider including all energy efficiency and building decarbonization programs administered by the commission, a federal or local governmental agency, or a nonprofit organization, programs, including all of the following:
(A)The direct install program established pursuant to Section 25665.3 as part of the Equitable Building Decarbonization Program.
(B)The statewide incentive program for low-carbon building technologies established pursuant to Section 25665.5.
(C)Any other energy efficiency and building decarbonization programs administered by a federal or local governmental agency or a nonprofit organization. agencies and nonprofit organizations.
(2)Customers shall be able to apply for the programs included pursuant to paragraph (1) through the internet website. The internet website shall complement rather than replace other application methods for those programs.
(3)The commission shall partner with any relevant entities that administer the programs included pursuant to paragraph (1).
(4)The commission shall annually review the programs included pursuant to paragraph (1) and invite stakeholder suggestions for new programs to be included in the internet website and to provide feedback on potential improvements.
(c)(1)For a program the commission determines cannot be included pursuant to subdivision (b), including any other state program that is either not administered by the commission or funded by the customers of an electrical corporation, the commission may provide a link to the program.
(2)The commission shall not include on the internet website any energy efficiency or building decarbonization program established or administered by the Public Utilities Commission.
(d)The commission shall communicate with local organizations in disadvantaged communities about the internet website, including annual changes or updates.
(e)Funding for implementation of this section shall be available, upon appropriation by the Legislature, in the annual Budget Act.
This act shall be known, and may be cited, as the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023.
SEC. 2.It is the intent of the Legislature to improve the distribution and access to state and federal programs for energy efficiency and building decarbonization programs by streamlining current and future investments, opportunities, and financing into a one-stop shop application for programs administered by the State Energy Resources Conservation and Development Commission. Commission, a federal or local governmental agency, or a nonprofit organization.
SEC. 3.Section 25237 is added to the Public Resources Code, to read:25237.(a)The commission shall develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the commission commission, a federal or local governmental agency, or a nonprofit organization that are available in the state for residential buildings and residential electricity customers. The internet website shall be capable of gathering information, including, but not limited to, the name, address, and income, from a user and autopopulating the inputted information in applications to participate in those programs administered by the commission commission, a federal or local governmental agency, or a nonprofit organization for which the user is qualified. The commission shall ensure the internet website requires the applicants consent before the applicant inputs the information.
(b)(1)For purposes of subdivision (a), the commission shall consider including all energy efficiency and building decarbonization programs administered by the commission, a federal or local governmental agency, or a nonprofit organization, including both all of the following:
(A)The direct install program established pursuant to Section 25665.3 as part of the Equitable Building Decarbonization Program.
(B)The statewide incentive program for low-carbon building technologies established pursuant to Section 25665.5.
(C)Any other energy efficiency and building decarbonization programs administered by a federal or local governmental agency or a nonprofit organization.
(2)Customers shall be able to apply for the programs included pursuant to paragraph (1) through the internet website. The internet website shall complement rather than replace other application methods for those programs.
(3)The commission shall partner with any relevant entities that administer the programs included pursuant to paragraph (1).
(4)The commission shall annually review the programs included pursuant to paragraph (1) and invite stakeholder suggestions for new programs to be included in the internet website and to provide feedback on potential improvements.
(c)(1)For a program the commission determines cannot be included pursuant to subdivision (b), including any other state program that is either not administered by the commission, commission or funded by the customers of an electrical corporation, the commission may provide a link to the program.
(2)The commission shall not include on the internet website any energy efficiency or building decarbonization program established or administered by the Public Utilities Commission.
(d)The commission shall communicate with local organizations in disadvantaged communities about the internet website, including annual changes or updates.
(e)Funding for implementation of this section shall be available, upon appropriation by the Legislature, in the annual Budget Act.
This act shall be known, and may be cited, as the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023.
SEC. 2.It is the intent of the Legislature to improve the distribution and access to state and federal programs for energy efficiency and building decarbonization programs by streamlining current and future investments, opportunities, and financing into a one-stop shop application for state agencies and for programs administered by the State Energy Resources Conservation and Development Commission to partner with local and federal agencies implementing those programs. Commission.
SEC. 3.Section 25237 is added to the Public Resources Code, to read:25237.(a)The commission shall develop and make publicly available an internet website for all energy efficiency and building decarbonization programs administered by the commission that are available in the state for residential buildings and residential electricity customers. The internet website shall be capable of gathering information, including, but not limited to, the name, address, and income, from a user and autopopulating the inputted information in applications to participate in those programs administered by the commission for which the user is qualified. The commission shall ensure the internet website requires the applicants consent before the applicant inputs the information.
(b)(1)For purposes of subdivision (a), the commission shall consider including all energy efficiency and building decarbonization programs administered by the commission, programs that are under the jurisdiction of the Public Utilities Commission, and programs that are administered by other local, state, or federal agencies and nongovernmental entities, including electrical corporations, as defined in Section 218 of the Public Utilities Code. The programs shall include, but are not limited to, all including both of the following:
(A)The self-generation incentive program described in Section 379.6 of the Public Utilities Code.(B)The Energy Savings Assistance program described in Section 2790 of the Public Utilities Code.(C)The California Alternate Rates for Energy program described in Section 739.1 of the Public Utilities Code.(D)The Family Electric Rate Assistance program described in Section 739.12 of the Public Utilities Code.(E)The Low-Income Home Energy Assistance program.(F)The Weatherization Assistance program.(G)The Low-Income Weatherization program.(A)The direct install program established pursuant to Section 25665.3 as part of the Equitable Building Decarbonization Program.
(B)The statewide incentive program for low-carbon building technologies established pursuant to Section 25665.5.
(2)Customers shall be able to apply for the programs included pursuant to paragraph (1) through the internet website. The internet website shall complement rather than replace other application methods for those programs.
(3)The commission shall partner with any relevant entities that administer the programs included pursuant to paragraph (1).
(4)The commission shall annually review the programs included pursuant to paragraph (1) and invite stakeholder suggestions for new programs to be included in the internet website and to provide feedback on potential improvements.
(c)For programs a program the commission determines cannot be included pursuant to subdivision (b), including any program not administered by the commission, the commission shall may provide a link and any additional information to users who qualify for those programs based on the criteria entered by the user. to the program.
(d)The commission shall communicate with local organizations in disadvantaged communities about the internet website, including annual changes or updates.
(e)Funding for implementation of this section shall be available, upon appropriation by the Legislature, in the annual Budget Act.
This act shall be known, and may be cited, as the Californias Layered Energy Applications for Residents (CLEAR) Act of 2023.
SEC. 2.It is the intent of the Legislature to improve the distribution and access to state and federal programs for energy efficiency and building decarbonization programs by streamlining current and future investments, opportunities, and financing into a one-stop shop application for state agencies and for the State Energy Resources Conservation and Development Commission to partner with local and federal agencies implementing those programs.
SEC. 3.Section 25237 is added to the Public Resources Code, to read:25237.(a)The commission shall develop and make publicly available an internet website for all energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers. The internet website shall be capable of gathering information, including, but not limited to, the name, address, and income, from a user and autopopulating the inputted information in applications to participate in those programs for which the user is qualified.
(b)(1)For purposes of subdivision (a), the commission shall consider including all energy efficiency and building decarbonization programs administered by the commission, programs that are under the jurisdiction of the Public Utilities Commission, and programs that are administered by other local, state, or federal agencies and nongovernmental entities, including electrical corporations, as defined in Section 218 of the Public Utilities Code. The programs shall include, but are not limited to, all of the following:
(A)The self-generation incentive program described in Section 379.6 of the Public Utilities Code.
(B)The Energy Savings Assistance program described in Section 2790 of the Public Utilities Code.
(C)The California Alternate Rates for Energy program described in Section 739.1 of the Public Utilities Code.
(D)The Family Electric Rate Assistance program described in Section 739.12 of the Public Utilities Code.
(E)The Low-Income Home Energy Assistance program.
(F)The Weatherization Assistance program.
(G)The Low-Income Weatherization program.
(2)Customers shall be able to apply for the programs included pursuant to paragraph (1) through the internet website. The internet website shall complement rather than replace other application methods for those programs.
(3)The commission shall partner with any relevant entities that administer the programs included pursuant to paragraph (1).
(4)The commission shall annually review the programs included pursuant to paragraph (1) and invite stakeholder suggestions for new programs to be included in the internet website and to provide feedback on potential improvements.
(c)For programs the commission determines cannot be included pursuant to subdivision (b), the commission shall provide a link and any additional information to users who qualify for those programs based on the criteria entered by the user.
(d)The commission shall communicate with local organizations in disadvantaged communities about the internet website, including annual changes or updates.
(e)Funding for implementation of this section shall be available, upon appropriation by the Legislature, in the annual Budget Act.
SECTION 1.It is the intent of the Legislature to enact legislation that requires that properties being offered for sale or lease include information that aids purchasers or renters in assessing the costs of climate mitigation and adaptation, which would include, but not be limited to, all of the following:(a)A list of any fossil fuel appliances and infrastructure on the property.(b)A health disclosure on the impacts of natural gas appliances, including, but not limited to, indoor air pollution and risk of leaks.(c)An assessment of the propertys risk from climate impacts, including, but not limited to, wildfires, sea level rise, flooding, and extreme heat.(d)Relevant adaptation or resilience measures taken at the property or community level, including, but not limited to, fireproofing and raising levees.It is the intent of the Legislature to enact legislation that requires that properties being offered for sale or lease include information that aids purchasers or renters in assessing the costs of climate mitigation and adaptation, which would include, but not be limited to, all of the following:
(a)A list of any fossil fuel appliances and infrastructure on the property.
(b)A health disclosure on the impacts of natural gas appliances, including, but not limited to, indoor air pollution and risk of leaks.
(c)An assessment of the propertys risk from climate impacts, including, but not limited to, wildfires, sea level rise, flooding, and extreme heat.
(d)Relevant adaptation or resilience measures taken at the property or community level, including, but not limited to, fireproofing and raising levees.
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Date
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Status
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|---|---|
| Sep 1, 2023 | September 1 hearing: Held in committee and under submission. |
| Aug 23, 2023 | August 23 set for first hearing. Placed on suspense file. |
| Jul 12, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 11, 2023 | From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0.) (July 10). |
| Jul 3, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jun 29, 2023 | From committee: Do pass and re-refer to Com. on NAT. RES. with recommendation: To consent calendar. (Ayes 14. Noes 0.) (June 28). Re-referred to Com. on NAT. RES. |
| Jun 8, 2023 | Referred to Coms. on U. & E. and NAT. RES. |
| May 25, 2023 | In Assembly. Read first time. Held at Desk. |
| May 25, 2023 | Read third time. Passed. (Ayes 40. Noes 0. Page 1305.) Ordered to the Assembly. |
| May 23, 2023 | Ordered to special consent calendar. |
| May 18, 2023 | From committee: Do pass. (Ayes 7. Noes 0. Page 1182.) (May 18). |
| May 18, 2023 | Read second time. Ordered to third reading. |
| May 16, 2023 | Set for hearing May 18. |
| May 15, 2023 | May 15 hearing: Placed on APPR suspense file. |
| May 5, 2023 | Set for hearing May 15. |
| May 2, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| May 1, 2023 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 0. Page 871.) (April 24). |
| Apr 12, 2023 | Set for hearing April 24. |
| Mar 29, 2023 | Re-referred to Com. on E., U. & C. |
| Mar 21, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 1, 2023 | Referred to Com. on RLS. |
| Feb 21, 2023 | From printer. May be acted upon on or after March 20. |
| Feb 17, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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|
|---|---|---|---|---|
| Jul 10, 2023 | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Natural Resources |
Passed |
|
| Jun 28, 2023 | Do pass and be re-referred to the Committee on [Natural Resources] with recommendation: To Consent Calendar | Assembly Standing Committee on Utilities and Energy |
Passed |
|
| May 25, 2023 | Special Consent SB755 Becker | Senate Floor |
Passed |
|
| May 18, 2023 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 15, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 24, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
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.
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Organization
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Position
|
Date
|
|---|---|---|
| 350 Bay Area Action | ** Support | |
| AARP | ** Support | |
| California Association Of Realtors | ** Support | |
| California Building Industry Association | ** Support | |
| California Business Properties Association | ** Support | |
| California Green New Deal Coalition | ** Support | |
| Carbon Free Palo Alto | ** Support | |
| Carbon Free Silicon Valley | ** Support | |
| Central Coast Energy Services | ** Support | |
| Climate Action California | ** Support | |
| Coalition for A California Green New Deal | ** Support | |
| Elders Climate Action, Norcal and Socal Chapters | ** Support | |
| Fresno and Kern Counties | * Support | Apr 24, 2023 |
| Rewiring America | ** Support | |
| San Francisco Peninsula Energy Services | ** Support | |
| Stanford Law School | * Support | Apr 24, 2023 |
| Stanford University | * Support | Apr 24, 2023 |
Date of Hearing: August 23, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
SBPCA Bill Id:SB 755
Author:(Becker) – As Amended Ver:July 12, 2023
Policy Committee: | Utilities and Energy | Vote: | 14 - 0 |
Natural Resources | 11 - 0 | ||
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill directs the California Energy Commission’s (CEC) internet website to enable customers to apply for energy efficiency and building decarbonization programs offered by government agencies or nonprofit organizations.
Specifically, this bill directs the CEC to develop and make available a website for energy efficiency and building decarbonization programs administered by the CEC, federal or local governmental agencies, and nonprofit organizations that are available in the state for residential buildings and residential electricity customers. The bill requires the CEC’s website to enable customers to apply for the energy efficiency and building decarbonization programs and be capable of gathering information, including, but not limited to, the name, address and income, from a user and, with the applicant’s prior consent, autopopulating the inputted information in applications to participate in those programs for which the user is qualified.
The bill prohibits the CEC from including on the website any energy efficiency or building decarbonization program established or administered by the California Public Utilities Commission (CPUC).
FISCAL EFFECT:
The CEC anticipates needing significant new resources to implement this bill. Specifically, the CEC anticipates four new permanent staff—two general program specialists at approximately $180,000 annually each and two information technology specialists at approximately $195,000 annually each—at a total ongoing annual cost of $750,000, as well as $2 million in one-time costs to contract with a third-party to develop the web portal (Energy Resource Program Account (ERPA)).
COMMENTS:
- Purpose. The author lauds California as a leader on “providing financial support to increase energy efficiency, reduce utility bills, and support a transition to zero-emission appliances.” Yet the author describes the application process for these programs, and for comparable programs administered by other state agencies, local and federal government, and nonprofit organizations as “scattered.” The author intends this bill to lead to a “one-stop online application portal” for such programs so they are more accessible to Californians, generally, and low-income Californians, in particular.
- Background.
Energy efficiency and decarbonization portal. There are many federal, state, local and private programs to fund energy efficiency and building decarbonization. For example, the CEC administers the Equitable Building Decarbonization Program, which the state budget provided with $835 million to fund (a) building decarbonization upgrades for low-income and moderate-income households in single-family, multifamily, and manufactured homes in under resourced communities and (b) incentives for low-carbon building technologies. The California Department of Community Services and Development works with local energy services providers throughout the state installing weatherization and energy efficiency measures for low-income homeowners and renters that qualify under the United State Department of Energy's Weatherization Assistance Program. The state’s investor-owned utilities (IOUs) and municipal utilities provide hundreds of millions of dollars annually to incentive programs that advance the state’s policy for meeting its energy needs through energy efficiency first. In addition, the IOUs award over $100 million annually in ratepayer funds to eligible low-income participants in the Energy Savings Assistance for no-cost weatherization and energy efficiency measures, minor home repairs, and energy education.
In addition, the federal government last year passed the Inflation Reduction Act (IRA), authorizing $370 billion for, generally, clean energy, transportation and the environment. California expects to receive a substantial amount of this federal funding, which the CEC would use to fund efficiency and electrification projects.
The author describes the desired outcome of this bill as a “one-stop online application portal” for energy efficiency and decarbonization funding opportunities. Many such funding opportunities are provided by the IOUs, using ratepayer funds, at the direction of the CPUC. Yet, the bill explicitly prohibits the CEC from including on the website required by this bill any energy efficiency or building decarbonization program established or administered by the CPUC. It is not clear, therefore, how this bill creates a “one-stop shop.”
ERPA structural deficit. ERPA was established to provide funds for ongoing energy programs and energy projects, including the operations of the CEC. The ERPA fund is supported by a statutory surcharge on electricity consumption. The surcharge was increased to its statutory maximum—from $0.00029 to $0.0003 per kilowatt-hour (kWh)—by the CEC effective January 1, 2019. The surcharge generated approximately $67.5 million in 2017-18 and costs the average household $2.01 annually.
ERPA is in a structural deficit and, as a result, the CEC has overspent revenues by more than $17.4 million since fiscal year 2014-15. The CEC attributes the structural deficit to the CEC’s growing role in implementing aggressive climate policies that reduce electricity consumption, thereby reducing ERPA revenues. This structural deficit limits ERPA’s ability to support new programs.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: July 10, 2023
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Luz Rivas, Chair
SBPCA Bill Id:SB 755
Author:(Becker) – As Amended Ver:July 3, 2023
SENATE VOTE: 40-0
SUBJECT: Energy efficiency and building decarbonization programs
SUMMARY: Requires the California Energy Commission (CEC) to develop a website for energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers administered by CEC, a federal or local government agency, or a nonprofit organization. Requires CEC to enable customers to apply for these programs through the website.
EXISTING LAW:
- Requires CEC to assess the potential for the state to reduce greenhouse gas (GHG) emissions from the state’s residential and commercial building stock by at least 40% below 1990 levels by January 1, 2030. (Public Resources Code (PRC) 25403)
- Requires CEC to award funds to research and develop projects that advance technologies critical to meeting the state’s environmental and energy goals and benefit electricity ratepayers. (PRC 25711)
- Requires CEC to establish the Equitable Building Decarbonization Program, which includes developing a statewide incentive program for low-carbon building technologies and the direct install program to fund certain projects, including installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies. (PRC 25665 et seq.)
- Appropriates $1.12 billion to establish the Equitable Building Decarbonization Program, pusruant to the Budget Act of 2022. (AB 179 (Ting), Chapter 249, Statutes of 2022)
- Requires the California Public Utilities Commission (CPUC) to report biennially on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by CEC, the Air Resources Board (ARB), and the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in its annual report on ratepayer costs, and to require revisions of ratepayer funded programs as necessary. (Public Utilities Code 913.9)
THIS BILL:
- Requires CEC to develop and make available a website for energy efficiency and building decarbonization programs administered by CEC, a federal or local agency, or a nonprofit organization that are available for residential buildings and residential electricity customers. Requires the website to be capable of gathering specified information from a user and autopopulating the information in applications for participation in those programs.
- Requires CEC to consider including all energy efficiency and building decarbonization programs, including:
- The direct install program;
- The statewide incentive program for low-carbon building technologies; and,
- Any other energy efficiency and building decarbonization programs administered by a federal or local agency or a nonprofit organization.
- Requires that customers be able to apply for the programs through the website, and specifies that the website complement, but not replace, other application methods.
- Requires CEC to partner with relevant entities that administer the programs.
- Requires CEC to annually review the programs included, invite stakeholder suggestions for new programs to be added to the website, and provide feedback.
- Authorizes CEC to provide a link for any program CEC determines cannot be included on the website, including any other state program that is not administered by CEC or funded by the customers of an electrical corporation.
- Prohibits CEC from including any energy efficiency program or building decarbonization program administered by the CPUC.
- Requires CEC to communicate with local organizations and disadvantaged communities about the website, including annual changes or updates.
- Specifies that funding for implementation of the bill’s requirements “shall be available, upon appropriation by the Legislature, in the annual Budget Act.”
- States legislative intent to improve distribution and access to state and federal programs for energy efficiency and building decarbonization programs.
FISCAL EFFECT: According to the Senate Appropriations Committee:
- Unknown, potentially significant ongoing cost pressure (various funds) due to potential increases in applicants for energy efficiency and building decarbonization programs due to the simplified application process that this bill would establish.
- Unknown but likely minor costs (General Fund) for the CEC to develop a website as specified.
COMMENTS:
- Building emissions. According to ARB, residential and commercial buildings are responsible for approximately 25% of California’s GHG emissions when accounting for electricity demand, fossil fuels consumed onsite, and refrigerants. Of the 25%, around 10% of emissions are attributable to fossil fuel combustion, including natural gas, with residential buildings accounting for slightly more of those emissions than commercial buildings.
There are several strategies that can be employed to reduce GHG emissions from the building sector, such as: improved energy efficiency of buildings and appliances, reducing carbon emissions from fossil fuel sources, ensuring cleaner sources of energy to operate buildings and associated appliances, and addressing methane leaks. Refrigerants used for space-cooling and refrigeration systems also contribute directly to building-related GHG emissions and are a growing source of GHGs from buildings. ARB’s Scoping Plan for achieving carbon neutrality identifies actions to reduce GHG emissions from the building sector, including progressively improving building codes and standards, pursuing voluntary efforts to exceed code requirements, and completing existing building retrofits.
- State programs. The state has numerous energy efficiency and GHG reduction funding programs that provide grants and loans. These programs are available from various state entities, such as the CEC, CPUC ARB, CAEATFA, and the Department of Community Services and Development. The federal Inflation Reduction Act, adopted in 2022, authorized $370 billion for clean energy, transportation, and the environment, including two residential energy rebate programs: The Homeowner Managing Energy Savings Program will provide performance-based rebates for whole-house energy saving retrofits, and the High-Efficiency Electric Home Rebate Program will provide rebates for qualified electrification projects in low- to moderate-income households. This mishmash of programs makes is challenging for individuals to identify and apply for funding programs for which they may be eligible.
- Equitable Building Decarbonization Program. The Equitable Building Decarbonization Program was established by AB 209 (Committee on Budget), Chapter 251, Statutes of 2022, to reduce GHG emissions associated with the building sector. The program encompasses the direct install program and a statewide incentive program for low-carbon building technologies. The direct install program provides minimal or no-cost retrofits to low- and moderate-income households, with preference given for buildings located in under-resourced communities, or owned or managed by a California Native American tribe or a member of a California Native American tribe. The retrofits include installation of energy efficient appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies. The statute defines low- and moderate-income residents as those persons and families whose income does not exceed 120% of area median income, adjusted for family size, in accordance with the U.S. Department of Housing and Urban Development. The statute also authorizes the direct install program to include tenant protections for participating rental properties.
- This bill. This bill is intended to provide residential ratepayers with one website, administered by CEC, to identify the building efficiency programs and building decarbonization programs they may be eligible for and to apply for those programs through the website. The website may also help any third-party administrators selected by CEC to administer the Equitable Building Decarbonization Program, as well as community-based organizations, connect residents with access to these programs.
- Author’s statement:
California and the federal government have provided unprecedented investments, rebates, grants, and incentives to help low- and middle-income households switch to electric appliances and gain energy savings. In the Inflation Reduction Act (IRA) alone, for example, California was allocated $582 million in rebates for home decarbonization. While California leads on providing financial support to increase energy efficiency, reduce utility bills, and support a transition to a zero-emission appliances, the applications for these various energy programs are scattered. Energy applications are currently administered between 3 state agencies, a household’s utility, and their various local governments. Local organizers, non-profits, and individual Californians have struggled with using and promoting these disintegrated applications, as a result. This is particularly inaccessible to low-income households, who are often required to apply up to six programs to cost-effectively transition to an electric appliance. SB 755 requires the California Energy Commission to create ‘California's Layered Energy Application for Residents (CLEAR), a one-stop online application portal CEC energy programs and other federal or local programs interested in participating. For program applications that cannot be integrated, the portal would show a user which other incentives they qualify for. The CEC would also receive feedback annually on which local programs could be integrated and proactively communicate with advocates in disadvantaged communities on updates to the portal.
- Suggested amendments. The committee may wish to amend the bill to simplify and consolidate the language and to specify that the website is intended to include programs administered by CEC, federal or local public agencies, and (rather than “or”) nonprofit organizations.
- Double referral. This bill passed the Assembly Utilities and Energy Committee on June 28th with a vote of 14-0.
- Related legislation.
AB 43 (Holden) requires ARB to develop a market-based embodied carbon trading system to facilitate compliance with the state's strategy to reduce the carbon intensity of building materials by 40% by 2035. This bill has been referred to the Senate Environmental Quality Committee.
SB 48 (Becker) requires CEC, in consultation with ARB, California Public Utilities Commission, and Department of Housing and Community Development, on or before July 1, 2026, to develop a strategy using the existing energy usage data found in the benchmarking program requirement to track and manage the energy and GHG emissions of covered buildings in order to achieve the state’s energy and climate goals for buildings. This bill is also scheduled to be heard in this committee on July 10th.
SB 306 (Caballero) revises the direct install program that was enacted in the 2022-23 Budget as part of the Equitable Building Decarbonization Program and codifies and requires updates to the Extreme Heat Action Plan. This bill is also scheduled to be heard in this committee on July 10th.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Bay Area Action
California Building Industry Association
California Business Properties Association
California Green New Deal Coalition
Carbon Free Palo Alto
Carbon Free Silicon Valley
Central Coast Energy Services
Climate Action California
Elders Climate Action, NorCal and SoCal Chapters
Rewiring America
San Francisco Peninsula Energy Services
Opposition
None on file
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /
Date of Hearing: June 28, 2023
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Eduardo Garcia, Chair
SBPCA Bill Id:SB 755
Author:(Becker) – As Amended Ver:May 2, 2023
SENATE VOTE: 40-0
SUBJECT: Energy efficiency and building decarbonization programs
SUMMARY: This bill would require the California Energy Commission (CEC) to develop and make publicly available an Internet website for energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers. Additionally, the CEC is required to enable customer application for these programs on its website and provide a link for programs the CEC has determined cannot be included on the website.
EXISTING LAW:
- Requires the CEC to establish various clean energy programs such as the industrial grid support and decarbonization program to provide financial incentives for the implementation of projects at industrial facilities to provide significant benefits to the electrical grid, reduce emissions of greenhouse gases, and achieve the state’s clean energy goals. (AB 209, Committee on Budget, Chapter 251, Statutes of 2021, Public Resources Code § 25662-25665.1)
- Requires the CEC to assess the potential for the state to reduce greenhouse gas (GHG) emissions from the state’s residential and commercial building stock by at least 40% below 1990 levels by January 1, 2030. (Public Resources Code § 25403)
- Requires the CEC to award funds to research and development projects that advance technologies critical to meeting the state’s environmental and energy goals and benefit electricity ratepayers. (Public Resources Code § 25711)
- Requires the California Public Utilities Commission (CPUC) to report biennially on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by the CEC, the California Air Resources Board (CARB), and the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in its annual report on ratepayer costs, and to require revisions of ratepayer funded programs as necessary. (Public Utilities Code § 913.9)
FISCAL EFFECT: According to the Senate Committee on Appropriations, the fiscal impact to this bill is unknown. There is potentially significant ongoing cost pressure from various funds due to potential increases in applicants for energy efficiency and building decarbonization programs due to the simplified application process that this bill would establish. There are also unknown but likely minor costs to the General Fund for the CEC to develop a website as required in the bill.
BACKGROUND:
Equitable Building Decarbonization Program – California is committed to a just and equitable transition to carbon neutrality by 2045.[1] Residential and commercial buildings are responsible for roughly 25% of California’s greenhouse gas (GHG) emissions when accounting for fossil fuels consumed onsite and electricity demand.[2] Consequently, building decarbonization is critical for the state to achieve its goal of being carbon neutral. The Equitable Building Decarbonization Program was established in budget trailer bill, AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) with the goals to reduce GHGs related to the building sector and advance equity. The program has two components:
- The Direct Install Program provides building decarbonization upgrades for low-income and moderate-income households in single-family, multifamily, and manufactured homes in under resourced communities. The statute defines low- and moderate-income residents as those persons and families whose income does not exceed 120% of area median income, adjusted for family size, in accordance with the U.S. Department of Housing and Urban Development (HUD).
- A Statewide Incentive Program provides incentives for low-carbon building technologies, which will be implemented as new federal incentive funds authorized by the Inflation Reduction Act are disbursed. Separate guidelines will be developed for this program through a public process.
As shown in Figure 1, the State Budget Act of 2022 appropriated over $1 billion from the General Fund for the Equitable Building Decarbonization Program, specifically allocating $112 million for the program for its first year, and roughly $900 million is budgeted over the next four fiscal years. However, in light of changing state budget conditions, the Governor’s January 2023 Budget proposes reducing the funding to 91 percent, maintaining approximately $835 million for support of projects reducing GHG emissions in homes and advancing energy equity. The CEC preliminarily proposes to allocate 66 % of total funds to the direct install program.
Table 1: Equitable Building Decarbonization Program Budget[3]
2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 | Total |
$112 million | $665 million | $53 million | $92 million | $922 million |
Federal Energy Efficiency Rebate Programs – In August 2022, the federal government passed the Inflation Reduction Act (IRA), authorizing $370 billion—the largest climate change investment made in the nation’s history—towards clean energy, transportation and the environment.[4] It also established tax credits for clean energy, rebates for electric vehicles (EVs) and energy-efficient home appliances, among other credits. Among other programs, it includes two residential energy rebate programs: The Homeowner Managing Energy Savings Energy Savings (HOMES) program will provide performance-based rebates for whole-house energy saving retrofits while the High-Efficiency Electric Home Rebate (HEEHRA) program will provide rebates for qualified electrification projects in low-to-moderate income households. Rebates under these programs would cover the purchase and installation of electric heat pumps and electric stoves. About $290 million is anticipated to be allocated for California for each of these two programs. Once CEC receives the funding from the Department of Energy, it plans to begin disbursing the rebate funds in spring 2024.
Energy Efficiency at the CPUC — In its 2022 Annual Report, the CPUC noted the energy efficiency savings from the electric sector programs for the first three quarters of the year amounted to 2,827 gigawatt hours; while the gas sector programs saved 60 million therms.[5] In 2022, these programs cost approximately $590 million across the three largest investor-owned utilities (IOUs).[6]Energy efficiency is at the top of the “loading order,” meaning that California’s utilities are required to first meet their energy needs through cost-effective energy efficiency measures before renewable and conventional generation. The state’s IOUs and, to a lesser extent, the publicly owned utilities, administer hundreds of energy efficiency programs that provide financial incentives and rebates. The CPUC regulates ratepayer-funded energy efficiency programs.
Similar Actions at CPUC – In June 2020, the CPUC adopted a decision[7] that directed investor-owned utilities (IOUs) to establish a Universal Application System (UAS) Working Group with stakeholders. The working group consists of membership from community-based organizations, IOUs, contractors, and other stakeholders. The working group is intended to work towards a single application portal for, at minimum, the Energy Savings Assistance (ESA) program, California Affordable Rates in Energy (CARE), and Family Electric Rates Assistance (FERA) programs. Additionally, the working group would support and connect to other low-income and clean energy programs, including non-IOU programs. The UAS would allow for multiple registration pathways: online, in-person, by phone, text, and email. The working group had its first meeting in December 2021 and in a May 2022 draft report, it proposed several recommendations including that a UAS should be pursued, be run by a 3rd-party vendor, and begin with only CARE, FERA, and ESA, before integrating other additional programs. The working group also identified necessary technical features such as allowing customers to complete one application for multiple programs, as well as supporting data sharing of application information and energy usage information among program partners, program administrators, and other implementers.[8]
Energy Efficiency at Other Agencies – Energy efficiency efforts are not unique to the CEC, CPUC, or electric utilities. Many other state and federal agencies administer energy efficiency efforts, some include:
- The “Clean Energy Upgrade Financing” program required by ABX1-14 (Skinner, Chapter 9, Statutes of 2011) to finance energy efficiency retrofits with loans administered by CAEATFA within the State Treasurer’s Office.
- Federal funding for free weatherization services for low-income residents administered by the California Department of Community Services and Development (CDCS).
- The “School Energy Efficiency Stimulus Program” at the CEC established by AB 841 (Ting, Chapter 372, Statutes of 2020) to fund critical school improvements, support efforts to reopen schools consistent with COVID-19 guidance and provide jobs.
COMMENTS:
- Author’s Statement. According to the author, “California and the federal government have provided unprecedented investments, rebates, grants, and incentives to help low- and middle-income households switch to electric appliances and gain energy savings. In the Inflation Reduction Act (IRA) alone, for example, California was allocated $582 million in rebates for home decarbonization. While California leads on providing financial support to increase energy efficiency, reduce utility bills, and support a transition to zero-emission appliances, the applications for these various energy programs are scattered. Energy applications are currently administered between 3 state agencies, a household’s utility, and their various local governments. Local organizers, non-profits, and individual Californians have struggled with using and promoting these disintegrated applications, as a result. This is particularly inaccessible to low-income households, who are often required to apply up to six programs to cost-effectively transition to an electric appliance. SB 755 requires the California Energy Commission to create ‘California's Layered Energy Application for Residents (CLEAR), a one-stop online application portal CEC energy programs and other federal or local programs interested in participating. For program applications that cannot be integrated, the portal would show a user which other incentives they qualify for. The CEC would also receive feedback annually on which local programs could be integrated and proactively communicate with advocates in disadvantaged communities on updates to the portal.”
- Purpose of this Bill. According to the author, for low income families to cover the costs of electrifying an appliance, they must enroll in several income-qualified rebate and incentives programs, on top of energy savings and efficiency programs. These programs span different agencies and it can be intimidating for families to wade into various programs for which they might be eligible. As such, it seems beneficial for the state to designate, as this bill does, an entity responsible for developing and making a publicly available website for all the decarbonization programs for residential customers including enabling customer application.
- Related Legislation.
SB 306 (Caballero, 2023) makes changes to the direct install program approved in last year’s budget as part of the Equitable Building Decarbonization Program and codifies the Extreme Heat Action Plan. Status: This bill is pending hearing at Committee on Assembly Natural Resources
AB 841 (Berman) requires the California Energy Commission (CEC) to identify various subsectors of industrial emissions in California and their locations and identify barriers to industrial electrification, and submit to the Legislature an industrial heat electrification roadmap on or before June 30, 2024. Status: Pending hearing at Senate Energy, Utilities and Communications Committee.
AB 691(Ting) requires the CPUC to report biennially on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by the California Energy Commission (CEC), the California Air Resources Board (CARB), and the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in its annual report on ratepayer costs, and to require revisions of ratepayer funded programs as necessary. Status: Pending hearing at Senate Energy, Utilities and Communications Committee.
- Prior Legislation.
AB 209 (Committee on Budget) among its many provisions, establishes the Equitable Building Decarbonization Program, including a direct install program to fund the installation of measures to reduce GHGs from buildings. Status: Chapter 251, Statutes of 2022
AB 179 (Ting) Budget Act of 2022 appropriates $1.12 billion for the Equitable Building Decarbonization Program. Status: Chapter 249, Statutes of 2022
SB 1208 (Hueso) required the CPUC, on or before June 30, 2024, in coordination with other relevant state agencies, that provide low-income electric or gas utility customer assistance programs, to develop a process that enables customers to concurrently apply, or begin to apply, to multiple low-income customer assistance programs. Status: Chapter 840, Statutes of 2022
SB 68 (Becker) directed the CEC to gather and develop guidance and best practices to overcome barriers to the electrification of buildings and installation of electric vehicle charging equipment. This project implements the requirements of that bill to help commercial and residential building owners, the construction industry, and local governments. Status: Chapter 720, Statutes of 2021.
AB 3232 (Friedman) requires the CEC, by January 1, 2021, to assess the potential for the state to reduce GHG emissions from the state’s residential and commercial building stock by 40% below 1990 levels by January 1, 2030. Status: Chapter 373, Statutes of 2018.
SB 1477 (Stern) requires the CEC to develop a statewide market transformation initiative to transform the state’s market for low-emission space and water heating equipment for new and existing residential and nonresidential buildings and to develop an incentive program to fund near-zero emission technology for new residential and commercial buildings. Status: Chapter 378, Statutes of 2018.
SB 350 (De León) among its many provisions, includes a goal to double the energy efficiency savings in electricity and natural gas end uses by 2030. Status: Chapter 547, Statutes of 2015.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Bay Area Action
AARP
California Association of Realtors
California Building Industry Association
California Building Industry Association (CBIA)
California Business Properties Association
California Green New Deal Coalition
Central Coast Energy Services
Climate Action California
Coalition for A California Green New Deal
Elders Climate Action, Norcal and Socal Chapters
Rewiring America
San Francisco Peninsula Energy Services
Opposition
None on file.
Analysis Prepared by: Lina V. Malova / U. & E. / (916) 319-2083
Executive Order B-55-18, “To Achieve Carbon Neutrality”, Governor Edmund G. Brown Jr.; September 10, 2018, https://www.ca.gov/archive/gov39/wp-content/uploads/2018/09/9.10.18-Executive-Order.pdf ↑
CARB, “Building Decarbonization” https://ww2.arb.ca.gov/our-work/programs/building-decarbonization/about#_ftn1 ↑
The program budget shown here is consistent with the 2022-23 California State Budget passed by the Legislature and signed by the Governor in 2022. The program budget may change if modified by the Governor and Legislature in future years. ↑
White House, “Inflation Reduction Act Guidebook”; https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/ ↑
CPUC, 2022 Annual Report; https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/news-and-outreach/reports/annual-reports/ar2022_web_013123.pdf ↑
Pg. 40, CPUC, 2022 California Electric and Gas Utility Costs Report: AB 67 Annual Report to the Governor and Legislature, April 2023. https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs-division/reports/2023/2022-ab-67-report.pdf ↑
D. 21-06-015 ↑
California Investor-Owned Utilities. Universal Application System Sub-Working Group Recommendation Report Draft. May 2022. https://pda.energydataweb.com/api/view/2626/UAS%20Recommendation%20Draft_Comments%20Due%205_30.pdf ↑
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 755 |
THIRD READING
Bill No: SB 755
Author: Becker (D)
Amended: 5/2/23
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 17-0, 4/24/23
AYES: Bradford, Ashby, Becker, Caballero, Dodd, Durazo, Eggman, Gonzalez, Grove, McGuire, Min, Newman, Rubio, Seyarto, Skinner, Stern, Wilk
NO VOTE RECORDED: Dahle
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23
AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener
SUBJECT: Energy efficiency and building decarbonization programs
SOURCE: Author
DIGEST:
This bill requires the California Energy Commission (CEC) to develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the agency that are available in the state for residential buildings and residential electricity customers.
ANALYSIS:
Existing law:
- Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)) to establish the Equitable Building Decarbonization Program, which includes establishing a statewide incentive program for low-carbon building technologies and the direct install program to fund certain projects, including installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies. (Public Resources Code §25665 et seq.)
- Authorizes the CEC to administer the direct install program through regional direct install third-party implementers, as specified. Requires that the direct install program give preference to projects in buildings that meet specified criteria. (Public Resources Code §25665.3)
- Appropriated $1.12 billion from the General Fund for purposes of the Equitable Building Decarbonization Program. (Budget Act of 2022)
This bill:
- Requires the CEC to develop and make publicly available an internet website for energy efficiency and building decarbonization programs administered by the agency that are available in the state for residential buildings and residential electricity customers.
- Requires the internet website to include programs administered by the CEC for residential buildings and residential electricity customers, including the Equitable Building Decarbonization Program.
- Requires customers to be able to apply for the included programs through the internet website.
- Authorizes the CEC, for programs the CEC determines cannot be included in the internet website, including those administered by other agencies, to provide a link and any additional information to users who qualify for those programs.
Background
Greenhouse gas (GHG) emissions from the building sector. The California Air Resources Board (CARB) estimates that residential and commercial buildings are responsible for roughly 25 percent of California’s GHG emissions when accounting for electricity demand, fossil fuels consumed onsite, and refrigerants. Of the 25 percent, roughly 10 percent of emissions are attributable to fossil fuel combustion, including natural gas, with residential buildings accounting for slightly more of those emissions than commercial buildings. However, CARB has noted that these emissions numbers can vary from year-to-year.
Reducing GHG emissions from the building sector. There are several strategies that can be employed to reduce GHG emissions from the building sector, these include: improved energy efficiency of buildings and appliances, reducing carbon emissions from fossil fuel sources, ensuring cleaner sources of energy to operate buildings and associated appliances, addressing methane leaks, and others. CARB has noted that refrigerants used for space-cooling and refrigeration systems also contribute directly to building-related GHG emissions and these are a growing source of GHGs from buildings which must also be reduced. The Climate Change Scoping Plan identifies actions to reduce GHG emissions from the building sector, including progressively improving building codes and standards, pursuing voluntary efforts to exceed code requirements, and completing existing building retrofits.
Equitable Building Decarbonization Program. The Equitable Building Decarbonization Program was established in budget trailer bill, AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) with the goals to reduce GHGs related to the building sector. The program has two components: a direct install program and a statewide incentive program for low-carbon building technologies. The direct install program provides minimal or no-cost retrofits to low- and moderate-income households, with preference given for buildings located in under-resourced communities, or owned or managed by a California Native American tribe or a member of a California Native American tribe. The retrofits include installation of energy efficient appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facility the installation of new technologies. The statute defines low- and moderate-income residents as those persons and families whose income does not exceed 120 percent of area median income, adjusted for family size, in accordance with the U.S. Department of Housing and Urban Development (HUD). As an example, the income range within the state would mean that a family of four would meet this definition with an annual income of $96,350 or less in Fresno County and an annual income of $199,200 or less in Marin County. The statute also authorizes the direct install program to include tenant protections for participating rental properties. The CEC has held workshops and issues draft guidelines for the program, with many stakeholders submitting comments.
Funds appropriated in 2022, proposed to be reduced in 2023. The State Budget Act of 2022 appropriated over $1 billion from the General Fund for the Equitable Building Decarbonization Program, specifically allocating $112 million for the program for its first year, and roughly $900 million is budgeted over the next four fiscal years. However, in light of changing State Budget conditions, the Governor’s January 2023 Budget proposes reducing the funding to 91 percent, maintaining approximately $835 million for support of projects reducing GHG emissions in homes and advancing energy equity. The CEC proposes to allocate 66 percent of total funds to the direct install program.
SB 755. This bill proposes to have the CEC create an internet website that can be utilized by the public to apply for the Equitable Building Decarbonization Program and other programs administered by the CEC for residential electricity customers. This bill requires residents provide their consent prior to inputting their data into the internet website. In requiring the creation of the internet website, the author and supporters hope to help more Californians gain access to available CEC programs that can benefit residents by providing funding that supports improvements to their homes to reduce GHG emissions, as well as, provide links to non-CEC administered programs for which they may be eligible. The internet website may also help third-party administrators of the Equitable Building Decarbonization Program, should the CEC pursue third-party regional administrators as it currently proposing. These third-party administrators, as well as any community-based organizations they may partner with, will be able to help residents gain greater access to the application for this and other CEC programs.
Related/Prior Legislation
SB 306 (Caballero, 2023) makes changes to the direct install program approved in last year’s budget as part of the Equitable Building Decarbonization Program and codifies the Extreme Heat Action Plan. The bill is pending in the Senate.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022), among its many provisions, establishes the Equitable Building Decarbonization Program, including a direct install program to fund the installation of measures to reduce GHGs from buildings.
AB 179 (Ting, Chapter 249, Statutes of 2022), Budget Act of 2022, appropriated $1.12 billion for the Equitable Building Decarbonization Program.
SB 1208 (Hueso, Chapter 840, Statutes of 2022) required the CPUC, on or before June 30, 2024, in coordination with other relevant state agencies, that provide low-income electric or gas utility customer assistance programs, to develop a process that enables customers to concurrently apply, or begin to apply, to multiple low-income customer assistance programs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- Unknown, potentially significant ongoing cost pressure (various funds) due to potential increases in applicants for energy efficiency and building decarbonization programs due to the simplified application process that this bill would establish.
- Unknown but likely minor costs (General Fund) for the CEC to develop a website as specified.
SUPPORT: (Verified 5/18/23)
350 Bay Area Action
California Building Industry Association
California Green New Deal Coalition
Elders Climate Action, NorCal Chapter
Elders Climate Action, SoCal Chapter
Rewiring America
OPPOSITION: (Verified 5/18/23)
None received
ARGUMENTS IN SUPPORT: According to the author:
SB 755 requires the California Energy Commission to create ‘California's Layered Energy Application for Residents (CLEAR),’ a one-stop online application portal for state-administered energy programs. For program applications that cannot be integrated, the portal would show a user which other incentives they qualify for. The CEC would also receive feedback annually on which local programs could be integrated and proactively communicate with advocates in disadvantaged communities on updates to the portal.
Prepared by: Nidia Bautista / E., U. & C. / (916) 651-4107
5/20/23 13:05:44
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
SB 755 (Becker) - Energy efficiency and building decarbonization programs
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would require the California Energy Commission (CEC) to develop and make publicly available an internet website for energy efficiency and building decarbonization programs it administers that are available in the state for residential buildings and residential electricity customers.
Fiscal Impact:
- Unknown, potentially significant ongoing cost pressure (various funds) due to potential increases in applicants for energy efficiency and building decarbonization programs due to the simplified application process that this bill would establish.
- Unknown but likely minor costs (General Fund) for the CEC to develop a website as specified.
Background:
Equitable Building Decarbonization Program. The Equitable Building Decarbonization Program was established in budget trailer bill, AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) with the goals to reduce GHGs related to the building sector. The program has two components: a direct install program and a statewide incentive program for low-carbon building technologies. The direct install program provides minimal or no-cost retrofits to low- and moderate-income households, with preference given for buildings located in under-resourced communities, or owned or managed by a California Native American tribe or a member of a California Native American tribe. The retrofits include installation of energy efficient appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facility the installation of new technologies. The statute defines low- and moderate-income residents as those persons and families whose income does not exceed 120 percent of area median income, adjusted for family size, in accordance with the U.S. Department of Housing and Urban Development (HUD).
The statute also authorizes the direct install program to include tenant protections for participating rental properties. The CEC held a scoping workshop on December 13, 2022 on implementing the program and solicited comments on four broad categories: program criteria, third-party implementers, direct install measures, and the statewide incentive program. Many stakeholders have submitted comments on these issues.
Funds appropriated in 2022, proposed to be reduced in 2023. The State Budget Act of 2022 appropriated over $1 billion from the General Fund for the Equitable Building Decarbonization Program, specifically allocating $112 million for the program for its first year, and roughly $900 million is budgeted over the next four fiscal years. However, in light of changing state budget conditions, the Governor’s January 2023 Budget proposes reducing the funding to 91 percent, maintaining approximately $835 million for support of projects reducing GHG emissions in homes and advancing energy equity. The CEC preliminarily proposes to allocate 66 percent of total funds to the direct install program.
CPUC Universal Application System (UAS) Working Group. In June 2020, the California Public Utilities Commission (CPUC) adopted decision (D. 21-06-015) with directed electric utilities to establish a UAS Working Group with stakeholders. The working group is intended to work towards a single application portal for, at minimum, the Energy Savings Assistance (ESA) program, California Affordable Rates in Energy (CARE), and Family Electric Rates Assistance (FERA) programs. Additionally, the working group would support and connect to other low-income and clean energy programs, including non-IOU programs. The UAS would allow for multiple registration pathways: online, in-person, by phone, text, and email. The working group consists of membership from community-based organizations, utilities, contractors, and other stakeholders.
SB 1208 (Hueso, Chapter 840, Statutes of 2022) concurrent application process. As noted above, the CPUC is embarking on development of a UAS process. Although the CPUC is currently focused on low-income assistance programs, beginning with CARE, FERA, and ESA programs for the UAS, they note that they are open to including other programs in the future, including non-utility programs. The CPUC has also noted an interest to include other low-income assistance programs, including those for water and telecommunications customers.
Proposed Law:
This bill would require the CEC to develop and make publicly available an internet website for energy efficiency and building decarbonization programs it administers that are available in the state for residential buildings and residential electricity customers. Specifically, this bill would:
- Require the CEC to develop and make publicly available an internet website for energy efficiency and building decarbonization programs it administers that are available in the state for residential buildings and residential electricity customers, as specified.
- Require the CEC to enable customer application for included programs through the internet website. For programs the CEC determines cannot be included in the internet website, including programs not administered by the CEC, this bill would require the CEC to provide a link to those programs.
Related Legislation:
SB 306 (Caballero, 2023) would make changes to the direct install program approved in last year’s budget as part of the Equitable Building Decarbonization Program and codifies the Extreme Heat Action Plan.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) among its many provisions, establishes the Equitable Building Decarbonization Program, including a direct install program to fund the installation of measures to reduce GHGs from buildings.
AB 179 (Ting, Chapter 249, Statutes of 2022) Budget Act of 2022 appropriates $1.12 billion for the Equitable Building Decarbonization Program.
SB 1208 (Hueso, Chapter 840, Statutes of 2022) required the CPUC, on or before June 30, 2024, in coordination with other relevant state agencies, that provide low-income electric or gas utility customer assistance programs, to develop a process that enables customers to concurrently apply, or begin to apply, to multiple low-income customer assistance programs.
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SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Steven Bradford, Chair
2023 - 2024 Regular
Bill No: SB 755 Hearing Date: 4/24/2023
Author: | Becker | ||
Version: | 3/21/2023 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Nidia Bautista | ||
SUBJECT: Energy efficiency and building decarbonization programs
DIGEST: This bill the California Energy Commission (CEC) to develop and make publicly available an internet website for all energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers.
ANALYSIS:
Existing law:
- Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)) to establish the Equitable Building Decarbonization Program, which includes establishing a statewide incentive program for low-carbon building technologies and the direct install program to fund certain projects, including installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies. (Public Resources Code §25665 et seq.)
- Authorizes the CEC to administer the direct install program through regional direct install third-party implementers, as specified. Requires that the direct install program give preference to projects in buildings that meet specified criteria. (Public Resources Code §25665.3)
- Appropriated $1.12 billion from the General Fund for purposes of the Equitable Building Decarbonization Program. (Budget Act of 2022)
This bill:
- Requires the CEC to develop and make publicly available an internet website for all energy efficiency and building decarbonization programs available in the state for residential buildings and residential electricity customers, as specified.
- Requires the internet website to include specified programs, and would require customers to be able to apply for the included programs through the internet website. For programs the CEC determines cannot be included in the internet website, this bill would require the CEC to provide a link and any additional information to users who qualify for those programs, as specified.
Background
Greenhouse gas (GHG) emissions from the building sector. According to the California Air Resources Board (CARB), residential and commercial buildings are responsible for roughly 25 percent of California’s GHG emissions when accounting for electricity demand, fossil fuels consumed onsite, and refrigerants. Of the 25 percent, roughly 10 percent of emissions are attributable to fossil fuel combustion, including natural gas, with residential buildings accounting for slightly more of those emissions than commercial buildings. However, CARB has noted that these emissions numbers can vary from year-to-year.
Reducing GHG emissions from the building sector. There are several strategies that can be employed to reduce GHG emissions from the building sector, these include: improved energy efficiency of buildings and appliances, reducing carbon emissions from fossil fuel sources, ensuring cleaner sources of energy to operate buildings and associated appliances, addressing methane leaks, and others. CARB has noted that refrigerants used for space-cooling and refrigeration systems also contribute directly to building-related GHG emissions and these are a growing source of GHGs from buildings which must also be reduced. The Climate Change Scoping Plan identifies actions to reduce GHG emissions from the building sector, including progressively improving building codes and standards, pursuing voluntary efforts to exceed code requirements, and completing existing building retrofits.
Equitable Building Decarbonization Program. The Equitable Building Decarbonization Program was established in budget trailer bill, AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) with the goals to reduce GHGs related to the building sector. The program has two components: a direct install program and a statewide incentive program for low-carbon building technologies. The direct install program provides minimal or no-cost retrofits to low- and moderate-income households, with preference given for buildings located in under-resourced communities, or owned or managed by a California Native American tribe or a member of a California Native American tribe. The retrofits include installation of energy efficient appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facility the installation of new technologies. The statute defines low- and moderate-income residents as those persons and families whose income does not exceed 120 percent of area median income, adjusted for family size, in accordance with the U.S. Department of Housing and Urban Development (HUD). As an example, the income range within the state would mean that a family of four would meet this definition with an annual income of $96,350 or less in Fresno County and an annual income of $199,200 or less in Marin County. The statute also authorizes the direct install program to include tenant protections for participating rental properties. The CEC held a scoping workshop on December 13, 2022 on implementing the program and solicited comments on four broad categories: program criteria, third-party implementers, direct install measures, and the statewide incentive program. Many stakeholders have submitted comments on these issues.
Funds appropriated in 2022, proposed to be reduced in 2023. The State Budget Act of 2022 appropriated over $1 billion from the General Fund for the Equitable Building Decarbonization Program, specifically allocating $112 million for the program for its first year, and roughly $900 million is budgeted over the next four fiscal years. However, in light of changing state budget conditions, the Governor’s January 2023 Budget proposes reducing the funding to 91 percent, maintaining approximately $835 million for support of projects reducing GHG emissions in homes and advancing energy equity. The CEC preliminarily proposes to allocate 66 percent of total funds to the direct install program.
CPUC Universal Application System (UAS) Working Group. In June 2020, the California Public Utilities Commission (CPUC) adopted decision (D. 21-06-015) with directed electric utilities to establish a UAS Working Group with stakeholders. The working group is intended to work towards a single application portal for, at minimum, the Energy Savings Assistance (ESA) program, California Affordable Rates in Energy (CARE), and Family Electric Rates Assistance (FERA) programs. Additionally, the working group would support and connect to other low-income and clean energy programs, including non-IOU programs. The UAS would allow for multiple registration pathways: online, in-person, by phone, text, and email. The working group consists of membership from community-based organizations, utilities, contractors, and other stakeholders.
SB 1208 (Hueso, Chapter 840, Statutes of 2022) concurrent application process. As noted above, the CPUC is embarking on development of a UAS process. Although the CPUC is currently focused on low-income assistance programs, beginning with CARE, FERA, and ESA programs for the UAS, they note that they are open to including other programs in the future, including non-utility programs. The CPUC has also noted an interest to include other low-income assistance programs, including those for water and telecommunications customers.
SB 755. This bill proposes to have the CEC create an online application portal for multiple programs in support of implementing the direct install program from the Equitable Building Decarbonization Program and layering those incentive with additional program incentives. However, many of the programs listed are not CEC-administered programs, and as noted above, the CPUC is already developing a concurrent online application process for many low-income assistance programs. In order to avoid recreating the wheel, the author and committee may wish to amend this bill to limit the CEC’s development of the online application process to only CEC-administered programs and authorize the CEC to post links to non-CEC programs.
Additionally, the author and committee may wish to require that the use of the online portal requires the customer’s consent, similar to that required in SB 1208.
Prior/Related Legislation
SB 306 (Caballero, 2023) makes changes to the direct install program approved in last year’s budget as part of the Equitable Building Decarbonization Program and codifies the Extreme Heat Action Plan.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) among its many provisions, establishes the Equitable Building Decarbonization Program, including a direct install program to fund the installation of measures to reduce GHGs from buildings.
AB 179 (Ting, Chapter 249, Statutes of 2022) Budget Act of 2022 appropriates $1.12 billion for the Equitable Building Decarbonization Program.
SB 1208 (Hueso, Chapter 840, Statutes of 2022) required the CPUC, on or before June 30, 2024, in coordination with other relevant state agencies, that provide low-income electric or gas utility customer assistance programs, to develop a process that enables customers to concurrently apply, or begin to apply, to multiple low-income customer assistance programs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
350 Bay Area Action
California Building Industry Association
California Green New Deal Coalition
Rewiring America
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the author:
SB 755 requires the California Energy Commission to create ‘California's Layered Energy Application for Residents (CLEAR),’ an one-stop online application portal for state-administered energy programs. For program applications that cannot be integrated, the portal would show a user which other incentives they qualify for. The CEC would also receive feedback annually on which local programs could be integrated and proactively communicate with advocates in disadvantaged communities on updates to the portal.
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Discussed in Hearing
Senate Standing Committee on Appropriations
Senate Standing Committee on Energy, Utilities and Communications
Bill Author
Bill Co-Author(s):