Senate Standing Committee on Energy, Utilities and Communications

Okay. Let's call this hearing of the Senate Committee on Energy, Utilities and Communications to order. We wanna ask all of our colleagues to come on down. We're going to establish a quorum, but let me just start by saying that we have five bills on today's agenda.

ACA 9, which is Tasha Boerner's proposed constitutional amendment is going to be heard at a subsequent hearing, I think the next hearing of this committee, so it will not be heard today. So, before we hear presentation on the bills, let's establish a quorum. Assistant, please call the roll.

[Roll call].

Okay. Strickland did not vote aye on the quorum call, right? You did the right thing. You did the right thing, unlike all of our colleagues here. All right. Let's start with the hearing. Let's-- I see Assembly Member Bennett's here.

He's here to present AB 2458, but we have a rule-- okay. So there's-- why don't you come up? While you get ready, we'll just vote on the Consent Calendar, which has been moved by Aisha Wahab. Secretary, please call the roll.

On the Consent Calendar, [roll call].

Okay. So, members, this is Item Two in your agendas, AB 2458 by Bennett, and you may proceed when ready.

Thank you very much. Chair, Members, I'm here today to present AB 2458. It would allow the California Energy Commission to apply appliance efficiency standards to appliances rented or leased in the state. In the absence of federal action, California established energy efficiency standards back in the 1970s.

Some estimates have noted that the energy efficiency standards have saved California residents billions of dollars in energy cost. Unfortunately, the California Energy Commission's existing authority over appliances is limited to items that are sold.

And the bill corrects this long, that long standing oversight and would require distributors to ensure that all devices, including those that are rented or leased, to be compliant. This will assure that residents and businesses alike see long term savings on their energy bills. This is a smart policy. It reduces energy demand on the grid and provides direct savings to rate payers. Respectfully ask for your aye vote.

Thank you, Assembly Member. Any witnesses or no? Okay. Alright. Let's go to folks who wanna voice their support for the bill are welcome to come to the microphone. This is this is AB 2458 by Bennett.

Good afternoon, Mr. Chair and Members. My name is Scott Cox here on behalf of Ceres here to voice our strong support.

Great. Thank you. We go from pink to red.

Hi. Good afternoon. Lynn Trujillo with Southern California Edison in support.

Great. Okay. Anyone else? Opposition? Concerns about the bill? Okay. Moved by Senator Strickland. Questions, thoughts, comments from the Members? Senator Caballero.

I just have a question. And thank you so much for presenting this bill. But I wanna make sure. It appears to me that this does not include food processors. And I just wanna make sure that that's the case. Food processors are going out of business in the state of California at an alarming rate.

And so anything that require... Well, and we already have climate change goals that they have to meet or penalties they have to pay if they don't green their equipment. So I just wanna make sure that in this the bill that we're discussing that it does not include commercial food processors. They're not the kind that you use in your kitchen, but the kind that make our tomato sauce and etcetera.

I appreciate the question. I appreciate the fact that we knew about your question in advance. And so I checked with the Energy Commission and I just wanna read to you their specific response.

That'd be great.

If that if that helps you. Food processing is not currently affected by any existing efficiency standards and would not likely be affected by the efficiency standards adopted pursuant to this bill. In other words, they're not doing it for even products sold right now.

So this would just add that. So food processing is generally considered an industrial process with large throughput often using specialized industrial equipment. Specialized industrial equipment falls outside the scope of appliance efficiency standards.

The CEC's appliance efficiency standard focuses on appliances that are mass produced and does not cover specialized industrial equipment, making it unlikely that this bill would affect commercial food processing, etcetera. I'll send you the rest of this statement if you would like but I don't...

That would be great. I appreciate you checking in with them. And as I said, I'm going to support your bill today, but I just wanted to make sure that that was the case. So thank you so much.

Appreciate your question. You're welcome.

Other questions from the Members? Yeah. So moved by Senator Strickland. Let's give you the opportunity to close.

Respectfully ask for an aye vote.

Secretary, please call the roll.

Do pass to Senate Appropriations Committee. [Roll Call]

Okay. Alright. We will leave that...

Oh, did I not call her name? Oh, I'm sorry. Okay. Sorry. [Roll Call]

Well, good impersonation. If you wanna ask some questions on his behalf, you're welcome. Okay. Alright. Let's, is this Senator Ellis?

That's AB 34. Okay. The consent calendar--

Yeah. This is AB 34. It's just AB 34 on the Consent Calendar by Patterson.

Okay. Current vote: ten / zero. [Roll call].

Okay. Great. We will-- is it-- we'll leave it open in case there's any stragglers. Let's ask Assembly Member Ellis to come forward to present AB 2518. This is Item Three in your agendas.

No. I'm sorry. This is AB 2476. AB 2476. Come on forward. And you may proceed. We usually have you go to the dais, unless you really want to sit down, in which case, either way.

I'm a rookie. Okay. Thank you, Mr. Chair and members. AB 2476 is a targeted common-sense update to the central procurement program created by AB 1373 in 2023.

It expands eligibility for pumped storage hydro projects without mandating any new procurement, without weakening environmental standards, and without cost to ratepayers. The CPUC has already identified a clear need for additional long-duration energy storage. Pumped storage hydro is the most proven, efficient, and long-lasting long-duration storage technology we have with 75 to 100-year asset life and the ability to provide capital, critical grid stability.

It also helps integrate variable renewables and reduce curtailment during periods of overgeneration. Under current law, however, pumped storage hydro is only eligible for central procurement in the project-- if the project is 500 megawatts or smaller and received direct state funding before January 23.

My bill simply removes the outdated pre-2023 funding requirement while keeping the 500 Milliwatt Cap. It makes additional--sorry, Megawatt Cap-- additional, high-quality projects eligible for consideration. AB 2476 opens up more projects to compete. They help keeps cost down for ratepayers while giving California additional tools to maintain grid reliability and meet energy goals.

These projects are also significant economic benefits in rural California, in my district and other areas across the state. Here to testify in my support is Michael Boccadoro, on behalf of Rye Development and Mandy Isaacs-Lee with GreenGen.

Hi, Michael. Hey, guys.

Mr. Chairman, members, Michael Boccadoro, on behalf of Rye Development. Very straightforward bill. Pumped storage hydro has been part of California's resource mix for over 40 years. Many of us are probably familiar with the Helms Pump Storage Project about 50 miles east of Fresno.

It's a proven technology, cost-effective, and lasts literally lifetimes, and that project's over 40 years old. These projects often last between 75 and 100 years, and so we're looking forward to having eligibility under the central procurement program. Thank you.

Mandy.

Hi, Chair and members. Craig Scholer, not Mandy Lee, on behalf of GreenGenStorage, also in support. Gonna echo some of the comments previously made. Our project would be a 400-megawatt pumped storage project in the Amador and Calaveras counties using existing dams' project labor agreement. We think it would be a great project. It would benefit from this bill. So thank you.

Great. Others who want to voice their support for the bill?

Mr. Chair, members, Hunter Stern with IBEW 1245. We're familiar with the Amador-Calaveras County project. Support strongly. Thank you.

Great. Thank you, Hunter. Okay. Anyone else? Opposition, concerns? Issues with the bill? Okay. We'll bring it to the members for questions. Moved by Senator Wahab. Thoughts? You've left us speechless. Okay.

Can I just--

Oh. Oh, good. Good. Susan Rubio.

Spoke too soon. Just real quickly, I know that you said it expands eligibility but-- and you talked about the benefits to ratepayers by opening different, I guess, others-- people being able to compete. Can you kind of go deeper on the measurable deliverables for ratepayers? How does that reduce the cost? That's-- I want you to put a focus on that.

Yeah, I'm happy to do that--

Go ahead.

--Mr. Ellis, if you'd like. So, by having additional commercial technologies eligible for procurement into the long-duration energy storage, the PUC actually, in one of their recent decisions when they were authorizing procurement, talked about having pumped storage hydro would add additional resources, provide competition, which should help to bring down costs of any procurement. This bill doesn't require procurement. That procurement's gonna take place. This just ensures there are more resources that can compete in any procurement going forward.

On behalf of the Ag Energy Consumers--I'll put my ratepayer hat on--we're in strong support of the bill. I've talked with Turn. I've talked with the other ratepayer organizations. While they're not in support, they all see benefits.

Thank you. We just needed that.

If I could comment on that, I'd like to. The beautiful part about this is that, while supporting wind and solar, especially solar in the evenings when the price is a lot cheaper to use it to pump back up the hill, so during high peak hours, you can unload this water storage so it does reduce rates significantly.

Thank you. I just wanna make sure that, moving forward, like, we always hear: should reduce costs, and just wanted to get deeper into how it helps our ratepayers. But thank you. That was a perfect explanation. Appreciate it. And that's it. Thank you, Chair.

Great. Okay. Further questions? No? I will give you the chance to close. It's been-- oh. Oh, yeah, sorry. Sorry. Senator.

I just wanna make a comment, and that's to thank you for bringing this forward. This is not the only example of energy that's created by irrigation districts and in rural California that doesn't get counted towards the RPS system.

And so I think it's really important to recognize that every time we refuse to let a dam that's been in operation for over 100 years count their energy as hydroelectric energy towards the RPS system means that the ratepayers have to go out and build a green system that they then don't need the energy for, at least right now, and that that energy gets sold on the open market at a discount usually out of state during the peak energy time for solar. And so I appreciate what you're doing here.

I guess this is one of those situations where you eat the elephant one bite at a time, and I'm gonna support your bill today because I think it's the right-- it's the right move. If it's green, it's green. We ought to be counting it. And so, thank you, Mr. Chair, for that.

Thank you. Great. All right. We'll give you the chance to close.

Respectfully ask for your aye vote.

Okay. Thank you. All right. Secretary, please call the roll.

Do pass to Senate Appropriations Committee. [Roll call].

Great. All right. Thank you. Let's hear from Assembly Member Sharp-Collins. You may proceed when ready.

This is AB 2518.

I'm looking for my... Hi. Alright. Good afternoon, Chair and Members. I am pleased to present Assembly Bill 2518, a district specific bill that creates a five year pilot program in San Diego County to address the connection delays across various sectors.

Connection delays often lead to critical infrastructure projects, such as affordable housing, schools, hospitals, water projects, and electric vehicle charging stations, sitting empty and useless despite being ready for public use. When these delays occur, that means families are left living on the street.

Children cannot get access to their care that they actually need, and also the project cost rises. In my district, several affordable housing projects have experienced delays, with one reporting they were, they were energy ready for 103 days before the connection was actually completed. This bill solved this problem by establishing three distinct project categories with staggered connection timelines.

Category one gives 40 days for the connection once the project is actually deemed construction ready and covers affordable housing, hospitals, and other projects that are designed to protect, support, and also advance public health, safety, or welfare of the community. Category two gives 55 days for the municipal and also electric vehicle infrastructure projects.

And category three covers all other projects within a 70 day connection window. Assembly Bill 2518 has received no opposition and is strongly supported by SDG&E, who services San Diego County and are looking for ways to get key infrastructure projects to the public faster. I'm looking for everybody, but with me today to testify in support is Israel Salas, Governmental Affairs Manager at SDG&E. And also is Francis Barraza, Vice President of the Policy for San Diego Housing Commission.

Okay. Come on up.

Thank you, Assembly Member. Thank you, Chair and Members. My name is Francis Barraza, Vice President of Policy for the San Diego Housing Commission. The San Diego Housing Commission develops, finances, and oversees affordable housing across San Diego. We come before you today in strong support of AB 2518.

Affordable housing development projects in San Diego have faced significant unpredictable delays and utility energization after construction is substantially complete. These delays occur even when a project has met all pre energization requirements and is physically ready for connection. The delays impose substantial harm on affordable housing projects that operate on thin margins and are subject to strict compliance deadlines under their financing structures.

This bill corrects an operational practice that can disadvantage affordable housing development by treating it identically to standard residential or commercial new connections despite the distinct public benefit, significant public investment, and financing urgency these projects carry. And I would definitely wanna thank SDG&E for being such a strong supporter and development in this bill. Thank you.

Thank you very much.

Thank you, Madam Chair and Members of the Committee. Israel Salas here with San Diego Gas and Electric. Happy to be in support of the bill. As the Member noted, we really value the opportunity to work with our stakeholders in the San Diego region, in particular the Housing Commission. We think that the timelines that the bill is putting forth are achievable and feasible. And for that reason, we're here in support. Thank you.

Alright. We'll continue with any other Members in support of AB 2518 here in Room 1200. Seeing none. We'll now continue with any lead opposition. Seeing none. Do we have any members in opposition here in Room 1200? Seeing none, we bring it back to the dais. Any comments or questions? We have a motion by Senator Richardson. Senator Reyes.

I'd like to thank you for bringing this. I think that this is a great idea. And I think bringing the stakeholders together to put together something that helps the community and puts us back on track and makes people accountable and provides for transparency. I hope that the pilot is successful and that we then have another bill next year that takes it to all of California.

Senator Becker.

Thank you. Yeah. So thank the author. A couple years ago, I passed SB 410 that really kind of focused on this energization broadly. And I know that this bill includes a clause saying nothing should supersede or conflict with that. But I do appreciate, you know, and I appreciate the deadlines that you're setting focusing on kind of critical infrastructure that we want to get connected quickly.

So, you know, I do appreciate, you know, some of the values have worked across the have used SB 410 and have gotten the backlog down or eliminated it. But I appreciate now your, you know, this step around some of these specific areas that we want to get connected quickly. So appreciate your work on this.

Alright. Any other comments or questions?

Just a little bit of clarification. And I'm sorry, we have so many committees going on that sometimes we don't get to the details of it. This one in particular, if you can just explain to me a little bit of... I guess I'm trying to get to unintended consequences, not that I see them.

But if someone could explain just a little further. You know, essentially, this is moving projects to the front of the line. Right? And so I always think of creating a faster lane for someone. Does that slow down potentially other projects for residential, for business? Is there a potential for those unintended consequences for other people?

The Chair, appreciate the question. And so as the Senator noted, so the PUC has been working on this issue as part of its SB 410 proceeding. And as part of that work, they've established essentially average timelines that the utilities need to meet for all customers.

The timelines in this bill are meant to complement that and work within those existing timelines, so we don't see that as a potential unintended consequence. We actually think it's complementary to that work. And it'll really challenge us to really just do better in this space given the focus that the legislature and a lot of policy makers have had in this space.

Thank you for that explanation. That's all. Thank you. Thank you, Madam Chair.

Alright. Member Sharp-Collins, thank you for bringing this measure forward. We have a motion by Senator Richardson. Madam Secretary, please call the roll. Oh, sorry. Oh, I'm sorry. Getting excited here to close.

That's okay.

Would you like to close?

I'll just keep it short and sweet. Thank you so much for your time, Chair and Members, and I respectfully ask for an aye vote.

Thank you. Madam Secretary, please call the roll.

Do pass to Appropriations. [Roll Call]

And we'll keep that, bill open for our absent members. Sounds good. Thank you. Okay. So we're gonna go through.

Okay. We're gonna go and open the roles for the consent calendar. Madam secretary, please call the roll.

Do you pass Oh. The consent calendar current vote thirteen zero. Archuleta.

Aye.

Aye.

Archuleta, Aye. Grove.

Grove Aye. McNerney.

Aye.

McNerney, Aye. 16 zero.

And we'll keep that open for our absent members. No. Oh, is that it? Okay. You

So what's the 2458. 16-0.

What is it?

It is 160.

Okay. That's 16-0. This bill passes. We'll now move to file item number two. AB 2458 by Assemblymember Bennett.

Madam secretary, please call the roll.

Do pass to appropriations, current vote thirteen zero. Archuleta?

Aye.

Archuleta, aye. Grove?

Grove, aye. McNerney?

Aye.

Aye.

McNerney, aye.

16-0. 16-0.

That's 16-0. The, AB 2458 passes. Alright. We'll now move on to file item number three, AB 2476 by member Ellis.

Do passed to appropriations current vote fourteen zero. Archuleta?

Aye.

McNerney, aye. Sixteen zero.

Aye.

Archuleta, aye. McNerney?

That's sixteen zero. That bill also passes. We'll now move on to bill or file item number four, AB 2518. Member Sharp Collins. Madam secretary, please call the roll.

Archuleta, aye.

Current vote fourteen zero. Do pass to appropriations. Allan. Archuleta.

Aye.

We'll leave that open for our absent member. So the committee on energy utilities and commissions will recess.

So all the other votes are cast. Okay. Alright. We're gonna reconvene this hearing. We wanna welcome the illustrious John Vane to to our proceedings.

John, this is going to be very anticlimactic because we're just going to open the roll on one bill. I'm going to vote for it and then the meeting will be over. So if only everything else here was so simple. So we're going to reopen the role on AB 25, 2518 Sharp Collins and we'll ask our assistant to call the roll.

Do you pass some into to appropriations? Current vote fifteen zero. Allen?

Aye.

Allen, aye.

Okay. That passes 16 to zero. We're missing one member. Okay. Okay.

So we'll we'll close the role on that and send that to appropriations. Is that right? Okay. And with that, John you are forever in the in the minutes and the record of this hearing and we will thank all of our staff for the hard work on this and several other bills making their way through and adjourn the hearing.