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SB-370 Energy efficiency.(2017-2018)

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Date Published: 03/28/2017 04:00 AM
SB370:v98#DOCUMENT

Amended  IN  Senate  March 27, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 370


Introduced by Senator Hertzberg
(Coauthors: Assembly Members Dababneh and Mathis)

February 14, 2017


An act to amend Section 381.2 of the Public Utilities Code, relating to energy efficiency.


LEGISLATIVE COUNSEL'S DIGEST


SB 370, as amended, Hertzberg. Energy efficiency.

Existing

(1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock. Existing law requires the Public Utilities Commission (PUC) to investigate the ability of electrical corporations and gas corporations to provide various energy efficiency financing options to their customers for the purposes of implementing the program developed by the Energy Commission. Existing law requires the PUC, by September 1, 2016, to authorize electrical corporations and gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, as specified.
This bill would require the PUC to authorize electrical corporations and gas corporations to also provide those services to their customers to increase the energy efficiency of industrial facilities and agricultural equipment. existing processes, systems, and equipment. The bill would require the PUC, on or before September 1, 2018, to authorize electrical corporations and gas corporations to also provide those services to their customers to increase the energy efficiency of industrial and agricultural facilities, systems, and equipment, as specified.
(2) Decisions of the PUC require electrical and gas corporations to estimate the energy savings derived from energy efficiency projects and submit those estimates to the PUC for review and approval. The PUC’s review and approval process is known as ex ante review.
This bill would prohibit the PUC from reviewing the energy savings of an energy efficiency project for which the PUC has authorized electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, or support.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 381.2 of the Public Utilities Code is amended to read:

381.2.
 (a) The commission shall investigate the ability of electrical corporations and gas corporations to provide various energy efficiency financing options to their customers for the purposes of implementing the program developed pursuant to Section 25943 of the Public Resources Code.
(b) Recognizing the already underway 2015 commission work to adopt efficiency potential and goals, the Energy Commission work on its 2015 energy demand forecast, and the need to determine how to incorporate meter-based performance into determinations of goals, portfolio cost-effectiveness, and authorized budgets, the commission, in a separate or existing proceeding, shall, by September 1, 2016, authorize electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of existing buildings, industrial facilities, and agricultural equipment facilities, processes, systems, and equipment based on all estimated energy savings and energy usage reductions, taking into consideration the overall reduction in normalized metered energy consumption as a measure of energy savings. Those programs shall include, but are not limited to, energy usage reductions resulting from the adoption of a measure or installation of equipment required for modifications to existing buildings to bring them into conformity with, or exceed, the requirements of Title 24 of the California Code of Regulations, as well as operational, behavioral, and retrocommissioning activities reasonably expected to produce multiyear savings. Electrical corporations and gas corporations shall be permitted to recover in rates the reasonable costs of these programs. The commission shall authorize an electrical corporation and gas corporation to count all energy savings achieved through the authorized programs created by this subdivision, unless determined otherwise, subdivision toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d).
(c) Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) for high-opportunity projects or programs. The commission shall provide expedited authorization of high opportunity projects and programs to apply the savings baseline provisions in subdivision (b).
(d) In furtherance of subdivision (b), the commission, in consultation with the Energy Commission, shall consider all of the following:
(1) The results of any interagency baseline assessment.
(2) Any available results from investor-owned utility baseline pilot studies ordered in D.14-10-046.
(3) Information necessary to ensure consistency with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(e) The commission may direct electrical corporations and gas corporations to make filings that are necessary to ensure coordination with the energy forecast and planning functions of the Energy Commission and the Independent System Operator.
(f) The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.
(g) (1) (A) On or before September 1, 2018, the commission shall authorize electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, and support to their customers to increase the energy efficiency of industrial and agricultural facilities, systems, and equipment based on reductions in normalized metered energy consumption using a protocol such as the International Performance Measurement and Verification Protocol (IPMVP) or a simplified methodology for small-scale projects.
(B) For purposes of this section, “normalized metered energy consumption” means the difference between historical metered energy consumption and metered energy consumption after the implementation of the energy efficiency measure or behavioral change, adjusted for changes in weather or operating conditions. In determining the baseline, existing historical energy consumption data shall be used for buildings, systems, or equipment. If no historical baseline data is available, current building codes shall be applied to establish the baseline.
(C) Industry standard practice shall only apply on new load projects for which neither historical energy consumption data nor a building code is applicable.
(D) Submetering shall be considered an acceptable source of energy consumption data.
(E) Reasonable assurance criteria shall be used to verify calculation methods.
(2) The commission shall authorize an electrical corporation, gas corporation, or program administrator to count all energy savings achieved through the authorized programs created by this subdivision toward overall energy efficiency goals or targets established by the commission.
(3) The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d).
(h) The commission shall not review the energy savings of an energy efficiency project for which the commission has authorized electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, or support pursuant to this section.
(i) Nothing in this section shall be construed to limit the commission’s existing authority to review the programs authorized by this section or adjust energy efficiency goals or targets. A program adjustment made by the commission shall apply only prospectively to future programs.