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SB-370 Energy efficiency.(2017-2018)

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Date Published: 05/02/2017 09:00 PM
SB370:v97#DOCUMENT

Amended  IN  Senate  May 02, 2017
Amended  IN  Senate  March 27, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 370


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

February 14, 2017


An act to amend Section 25303 of the Public Resources Code, and 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.
(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 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 specified energy efficiency project projects for which the PUC has authorized electrical corporations or gas corporations to provide financial incentives, rebates, technical assistance, or support. support, except as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 25303 of the Public Resources Code is amended to read:

25303.
 (a) The commission shall conduct electricity and natural gas forecasting and assessment activities to meet the requirements of paragraph (1) of subdivision (a) of Section 25302, including, but not limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas under current market structures and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural gas demand including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas, the report shall include an evaluation of average conditions, as well as best and worst case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas infrastructure and systems, including, but not limited to, natural gas production capability both in and out of state, natural gas interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas supply, demand, and infrastructure and resource additions on the electricity and natural gas systems, public health and safety, the economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural gas load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to improve performance.
(7) Identification of impending or potential problems or uncertainties in the electricity and natural gas markets, potential options and solutions, and recommendations.
(8) (A) Compilation and assessment of existing scientific studies that have been performed by persons or entities with expertise and qualifications in the subject of the studies to determine the potential vulnerability to a major disruption due to aging or a major seismic event of large baseload generation facilities, of 1,700 megawatts or greater.
(B) The assessment specified in subparagraph (A) shall include an analysis of the impact of a major disruption on system reliability, public safety, and the economy.
(C) The commission may work with other public entities and public agencies, including, but not limited to, the California Independent System Operator, the Public Utilities Commission, the Department of Conservation, and the Seismic Safety Commission as necessary, to gather and analyze the information required by this paragraph.
(D) Upon completion and publication of the initial review of the information required pursuant to this paragraph, the commission shall perform subsequent updates as new data or new understanding of potential seismic hazards emerge.
(b) Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1) The environmental performance of the electric generation facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2) The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c) In the absence of a long-term nuclear waste storage facility, the commission shall assess the potential state and local costs and impacts associated with accumulating waste at California’s nuclear powerplants. The commission shall further assess other key policy and planning issues that will affect the future role of nuclear powerplants in the state. The commission’s assessment shall be adopted on or before November 1, 2008, and included in the 2008 energy policy review adopted pursuant to subdivision (d) of Section 25302.
(d) The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) (c) and (d) (e) of Section 381.2 of the Public Utilities Code.

SECTION 1.SEC. 2.

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

381.2.
 (a) The It is the intent of the Legislature that the commission, in implementing this section, set and publish rules, interpretations, and assumptions within a reasonable time, transparently, and in advance of their application.
(b) 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)

(c) 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, 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 subdivision, unless determined otherwise, toward overall energy efficiency goals or targets established by the commission. The commission may adjust the energy efficiency goals or targets of an electrical corporation and gas corporation to reflect this change in savings estimation consistent with this subdivision and subdivision (d). (e).

(c)

(d) Effective January 1, 2016, electrical corporations and gas corporations are authorized to implement the provisions of subdivision (b) (c) 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). (c).

(d)

(e) In furtherance of subdivision (b), (c), 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)

(f) 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)

(g) The commission shall prioritize energy efficiency activities consistent with Sections 454.55 and 454.56.

(g)

(h) (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. as described in subdivision (c).

(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. as specified in subdivision (c).
(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). section.

(h)

(i) (1) The commission shall not review the energy savings of an energy efficiency project included in the Custom Measure and Project Archive (CMPA) for which the commission has authorized an electrical corporations corporation or a gas corporations corporation to provide financial incentives, rebates, technical assistance, or support pursuant to this section. section, except as provided in paragraph (2).
(2) The commission may review the energy savings of an energy efficiency project included in the CMPA only if all of the following apply:
(A) The project is selected for review within 21 days of being posted on the CMPA.
(B) An administrative law judge makes a finding that it is likely that the project is inconsistent with published program guidelines. This finding shall itemize likely inconsistencies.
(C) The review of the project does not exceed 60 days from the time of the administrative law judge’s finding in subparagraph (B).
(D) The review of the project concludes with a published finding of fact of the project’s consistency or inconsistency with the commission’s published program rules in effect at the time the commission authorized the electrical corporation or gas corporation to provide financial incentives, rebates, technical assistance, or support pursuant to this section. This finding of fact shall itemize any inconsistencies identified by the commission.

(i)

(j) 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. prospectively adjust program rules consistent with this section. A program adjustment made by the commission shall apply only prospectively to future programs.