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SB-1054 Natural gas: customer credit.(2023-2024)

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Date Published: 05/20/2024 04:14 PM
SB1054:v96#DOCUMENT

Amended  IN  Senate  May 20, 2024
Amended  IN  Senate  April 30, 2024
Amended  IN  Senate  March 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1054

Introduced by Senator Rubio

February 08, 2024

An act to add and repeal Chapter 8.65 (commencing with Section 25760) of Division 15 of, and to repeal Section 25760 of, the Public Resources Code, and to add Section 748.7 to the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1054, as amended, Rubio. Climate Pollution Reduction in Homes Initiative: natural Natural gas: customer credit.

Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to prescribe, by regulation, among other things, lighting, insulation, climate control system, and other building design and construction standards, energy and water conservation design standards, and appliance efficiency standards to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy and to manage energy loads to help maintain electrical grid reliability, as specified.

This bill would require the Energy Commission, in consultation with the Department of Community Services and Development, to develop and supervise the Climate Pollution Reduction in Homes Initiative to require gas corporations to jointly award grants for local service providers, as defined, nonprofit organizations, and regional collections of local governments to provide financial assistance to low-income households for the purchase of zero-carbon-emitting appliances. The bill would require the Energy Commission, as part of developing and administering the initiative, to develop guidelines, as specified, and authorize local service providers, nonprofit organizations, and regional collections of local governments to use those grant moneys for outreach and technical assistance, rebates, loans, installation, educational information, and other support services to assist low-income households. The bill would repeal the above-described provisions on January 1, 2029. The bill would also require the Energy Commission, on March 1 of every year from 2026 to 2030, inclusive, to submit a report to the relevant policy committees of the Legislature on the implementation of the initiative, as specified.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism.
This bill would require the PUC commission to direct the balance of the revenues received by a gas corporation as a result of that allocation to be credited directly to the residential customers of the gas corporation, except that, until January 1, 2029, the bill would authorize the PUC to require gas corporations to annually use up to 15% of the revenues received as a result of that allocation to fund the Climate Pollution Reduction in Homes Initiative, as specified.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC commission is a crime.
Because certain of the above-described provisions would be part of the act and a violation of a PUC commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

The Legislature finds and declares all of the following:

(a)The state is a global leader in greenhouse gas emissions reduction targets, including establishing state policies to return to 1990 greenhouse gas emissions levels by 2020, to reduce greenhouse gas emissions levels to 40 percent below 1990 levels by 2030, and to achieve carbon neutrality by 2045.

(b)Energy use in buildings is responsible for 25 percent of all emissions of greenhouse gases in the state and contributes to indoor and outdoor air pollution.

(c)Low-income communities across the state have disproportionately shouldered high energy costs and the burdens of poor air quality.

(d)Reducing home energy use through energy efficiency measures and retrofitting appliances simultaneously reduces residential energy expenses and harmful emissions, thereby improving economic security and indoor air quality, particularly in low-income communities.

SEC. 2.Chapter 8.65 (commencing with Section 25760) is added to Division 15 of the Public Resources Code, to read:
8.65.Climate Pollution Reduction in Homes Initiative
25760.

(a)For purposes of this chapter, the following definitions apply:

(1)“Department” means the Department of Community Services and Development.

(2)“Initiative” means the Climate Pollution Reduction in Homes Initiative.

(3)“Local service provider” has the same meaning as defined in Section 16367.5 of the Government Code.

(4)“Low-income household” means a person or family with a household income at or below 60 percent of the area median income, including such a person or family in a multiunit dwelling.

(b)(1)The commission, in consultation with the department, shall develop and supervise the Climate Pollution Reduction in Homes Initiative to require gas corporations to jointly award grants for local service providers, nonprofit organizations, and regional collections of local governments to provide financial assistance to low-income households for the purchase of zero-carbon-emitting appliances.

(2)For purposes of supervising the initiative, the commission shall act as third-party administrator.

(3)Moneys allocated pursuant to Section 748.7 of the Public Utilities Code shall be available to the commission, as the third-party administrator, for allocation consistent with this section.

(c)As part of developing and administering the initiative, the commission shall develop guidelines that do all of the following:

(1)Provide for the expenditure of grant funds to ensure expeditious delivery of financial assistance to low-income households.

(2)Specify criteria for which appliances, which may include water heaters, stoves and cooking appliances, home heating and cooling systems, refrigerators and freezers, and washers and dryers, are eligible for financial assistance.

(3)Ensure the initiative provides safe and reliable appliances that stabilize the utility bills of low-income households.

(4)Provide funding for single-family and multifamily residential buildings.

(5)Provide preference to projects that are receiving or combining funding from other sources, including, but not limited to, the Energy Efficiency Low-Income Weatherization Program established pursuant to Section 12087.5 of the Government Code.

(6)Provide tenant protections for rental properties, where appropriate.

(7)Maximize community-based outreach and education for the initiative through collaboration with local service providers, nonprofit organizations, or regional collections of local governments that have demonstrated ties to the local community at the neighborhood, city, or county level and have experience delivering energy incentives.

(8)Ensure that moneys from each gas corporation for the initiative are used for grants located in the service territory of the gas corporation from which the moneys are received.

(d)(1)A local service provider, nonprofit organization, or regional collection of local governments may use grant moneys for outreach and technical assistance, rebates, loans, installation, educational information, and other support services to assist low-income households.

(2)A local service provider, nonprofit organization, or regional collection of local governments may authorize up to 20 percent of the financial assistance provided to a low-income household to be used on electrical upgrades to the low-income household’s property to support the installation of a zero-carbon-emitting appliance.

(e)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

25761.

(a)On March 1, 2026, and each March 1 thereafter, the commission shall submit a report to the relevant policy committees of the Legislature on the implementation of this chapter that details all of the following:

(1)The amount of funding received.

(2)The grants awarded.

(3)The number and location of projects funded.

(4)The number of completed projects.

(5)Any challenges and lessons learned.

(b)A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

25762.

This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.

SEC. 3.SECTION 1.

 Section 748.7 is added to the Public Utilities Code, to read:

748.7.
 (a) Except as provided in subdivision (c), the The commission shall require revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas allowances to gas utilities pursuant to subdivision (a) and paragraphs (2) and (3) of subdivision (d) of Section 95893 of Title 17 of the California Code of Regulations to be credited directly to the residential customers of the gas corporation.
(b) Each year, the commission shall direct each gas corporation to distribute the credit described in subdivision (a) to residential customers of the gas corporation.

(c)(1)The commission may require gas corporations to annually use up to 15 percent of the revenues, including any accrued interest, received as a result of the direct allocation of greenhouse gas emissions allowances provided to gas corporations as part of a market-based compliance mechanism adopted pursuant to subdivision (c) of Section 38562 of the Health and Safety Code to fund the Climate Pollution Reduction in Homes Initiative established pursuant to Chapter 8.65 (commencing with Section 25760) of Division 15 of the Public Resources Code.

(2)This subdivision shall become inoperative on January 1, 2029.

SEC. 4.SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.