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AB-699 Public Utilities Commission: large electrical corporations: Flexible Demand Appliance Rebate Program.(2021-2022)

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Date Published: 04/13/2021 09:00 PM
AB699:v98#DOCUMENT

Amended  IN  Assembly  April 13, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 699


Introduced by Assembly Member Salas

February 16, 2021


An act to add Section 25402.30 to the Public Resources Code, and to add Sections 913.12 and 2791 to the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 699, as amended, Salas. Energy Commission: Public Utilities Commission: large electrical corporations: Flexible Demand Appliances Appliance Rebate Program.
Under existing law, the Public Utilities Commission (PUC) has regulatory jurisdiction over public utilities, including electrical corporations. Existing law requires certain levels of funding for programs to provide targeted energy-efficiency services to low-income electricity customers. Existing law requires the PUC, by not later than December 31, 2020, to ensure that all eligible low-income electricity customers are given the opportunity to participate in low-income energy efficiency programs, including customers occupying apartments or similar multiunit residential structures. Existing law requires electrical corporations to perform home weatherization services for low-income customers, as specified. These programs are generally known as the Energy Savings Assistance Program and are administered by each electrical corporation.
This bill would require the PUC to establish the Flexible Demand Appliance Rebate Program as a part of the Energy Savings Assistance Program to require each electrical corporation with more than 100,000 service connections in California to administer the Flexible Demand Appliance Rebate Program in its service territory to incentivize the deployment of certain flexible demand appliances, as defined. The bill would authorize ratepayers who are served by those electrical corporations and eligible to participate in the Energy Savings Assistance Program to participate in the Flexible Demand Appliance Rebate Program. The bill would fund the Flexible Demand Appliance Rebate Program through unspent and uncommitted moneys from the Energy Savings Assistance Program, as specified, and would prohibit the PUC from increasing rates or imposing or increasing a charge for purposes of the Flexible Demand Appliance Rebate Program. The bill would require the PUC, on or before July 30, 2023, and biennially thereafter, to submit to the Legislature an assessment of the Flexible Demand Appliance Rebate Program.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. Existing law requires the Energy Commission to consult with the Public Utilities Commission PUC and load-serving entities, as defined, to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and to incentivize the deployment of flexible demand appliances.
This bill would require the commission to establish the Flexible Demand Appliances Rebate Program to incentivize the deployment of qualified flexible demand appliances to certain residential ratepayers. The bill would require that the program provide point-of-sale rebates for qualified flexible demand appliances and be cost effective. The bill would require the program administrator to establish a Energy Commission, in consultation with the PUC, to publish public list lists of qualified flexible demand appliances, eligible retailers, and eligible appliances that meet or exceed the flexible demand appliance standards and load-management programs, provide outreach to low-income households and low-income and disadvantaged communities to increase ratepayer awareness of the program, and work directly with community-based organizations for marketing, education, and outreach efforts. The bill would require the commission, on or before an unspecified date, and through an unspecified date, to annually submit an assessment of the program to the Legislature. The bill would require the commission, on an unspecified interval, to evaluate the program and make any necessary adjustments, as specified. programs that are compatible with flexible demand appliances for purposes of the Flexible Demand Appliance Rebate Program.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because a violation of a commission action implementing the requirements of this bill would be a crime, this 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: NOYES  

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


SECTION 1.

 Section 25402.30 is added to the Public Resources Code, to read:

25402.30.
 (a)For Upon the adoption of regulations pursuant to subdivision (f) of Section 25402, the commission, in consultation with the Public Utilities Commission, shall publish public lists of both of the following for purposes of the Flexible Demand Appliance Rebate Program established pursuant to Section 2791 of the Public Utilities Code:
(a) Flexible demand appliances that meet or exceed the standards adopted pursuant to subdivision (f) of Section 25402.
(b) Load-management programs that are compatible with flexible demand appliances, including the name, location, and contact information for each load-management program, if applicable.

SEC. 2.

 Section 913.12 is added to the Public Utilities Code, to read:

913.12.
 (a) On or before July 30, 2023, and biennially thereafter, the commission shall submit to the Legislature an assessment of the program.
(b) The assessment shall include all of the following information:
(1) The number of qualified flexible demand appliances that received an incentive pursuant to the program and the aggregate dollar value of the incentives.
(2) The energy and bill reduction outcomes of the qualified ratepayers who receive an incentive pursuant to the program.
(3) The program’s cost.
(4) The program’s environmental benefits.
(5) An evaluation of the program’s expenditures, commitments, uncommitted balances, future demands, performance, and outcomes.
(6) Programmatic recommendations to ensure the goals of the program are met.
(c) For purposes of this section, the following definitions apply:
(1) “Program” means the Flexible Demand Appliance Rebate Program established pursuant to Section 2791.
(2) “Qualified flexible demand appliances” has the same meaning as defined in Section 2791.

SEC. 3.

 Section 2791 is added to the Public Utilities Code, to read:

2791.
 (a) For purposes of this section, the following definitions apply:

(1)“CARE program” means the California Alternate Rates for Energy program established pursuant to Section 739.1 of the Public Utilities Code.

(2)

(1) “Eligible load-management program” means a residential load-management program that is compatible with qualified flexible demand appliances, encourages ratepayers to shift electricity consumption during certain hours hours, and meets one or more of the following requirements:
(A) Is managed by a load-serving entity or third party. large electrical corporation.
(B) Encourages ratepayers to reduce or increase electricity consumption depending on the need for improving grid reliability, reducing emissions of greenhouse gases, or making electricity more affordable.
(C) Notifies ratepayers through a variety of means, including, but not limited to, text messages, email, and by phone.
(D) Incentivizes ratepayers to participate using a variety of payments, including, but not limited to, cash and bill credits.

(3)“Eligible retailers” means a retailer, as defined in Section 6015 of the Revenue and Taxation Code, that is approved to sell qualified flexible demand appliances under the program.

(4)“Load-serving entity” means a local publicly owned electric utility, electrical corporation, electric service provider, or community choice aggregator.

(5)“Point-of-sale rebate” means an incentive that is available immediately upon purchase so that the price of each discounted appliance is conspicuously displayed to the ratepayer at the time that the price is interpreted by point-of-sale system, as defined in Section 13300 of the Business and Professions Code.

(2) “Energy Savings Assistance Program” means the program established in statute in Section 2790.
(3) “Large electrical corporation” means an electrical corporation with more than 100,000 service connections in California.

(6)

(4) “Program” means the Flexible Demand Appliances Appliance Rebate Program established pursuant to this section.

(7)“Qualified affordable housing landlord” means a landlord, as defined in Section 1954.202 of the Civil Code, of rental housing units that are operated to provide deed-restricted low-income residential housing that is consistent with clause (i) of subparagraph (A) of paragraph (3) of subdivision (a) of Section 2852 of the Public Utilities Code and meets one or both of the following requirements:

(A)The property is located in a disadvantaged community, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.

(B)At least 80 percent of the households have incomes at or below 60 percent of the area median income, as defined in subdivision (f) of Section 50052.5 of the Health and Safety Code.

(8)

(5) “Qualified flexible demand appliances” means appliances that have the capability to schedule, shift, or curtail the electrical demand of a load-serving entity’s large electrical corporation’s ratepayer through direct action by the ratepayer or through action by a third party, the load-serving entity, large electrical corporation, or a grid balancing grid-balancing authority, with the customer’s consent, and that either meets or exceeds the standards adopted pursuant to subdivision (f) of Section 25402. 25402 of the Public Resources Code or is included on the public list published pursuant to Section 25402.30 of the Public Resources Code.

(9)

(6) “Qualified residential ratepayer” means a residential ratepayer that is served by a load-serving entity and meets one or both of the following requirements: large electrical corporation and is eligible to participate in the Energy Savings Assistance Program.

(A)Is located in a disadvantaged community identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.

(B)Has an income at or below 60 percent of the area median income, as defined in subdivision (f) of Section 50052.5 of the Health and Safety Code.

(b) (1) The commission shall establish the Flexible Demand Appliances Appliance Rebate Program as a part of the Energy Savings Assistance Program to require each large electrical corporation to administer the program in its service territory to incentivize the deployment of qualified flexible demand appliances.
(2) In establishing the program pursuant to paragraph (1), the commission shall consider the cost-effectiveness of the program’s incentives and the policy of reducing the energy hardships experienced by low-income and disadvantaged households.

(2)(A)The commission shall consider the most appropriate program administration structure, including administration by a qualified third-party administrator selected by the commission through a competitive bidding process, administration by a load-serving entity, or administration by the commission.

(B)Not more than ____ percent of the moneys allocated to the program shall be used for administration.

(3) (A) The program shall be available to qualified residential ratepayers, including single family homeowners and tenants, and qualified affordable housing landlords. ratepayers.
(B) A program participant shall own the qualified flexible demand appliance. The large electrical corporation shall confirm the eligibility of an applicant to participate in the program.

(C)

(4) The financial benefits of the qualified flexible demand appliance, including, but not limited to, bill savings and additional incentives from participating in an eligible load-management program, shall directly benefit the residential qualified ratepayer responsible for the electricity bill within the housing unit where the qualified flexible demand appliance is located. installed.

(4)(A)The program shall provide a point-of-sale rebate for qualified flexible demand appliances.

(B)To facilitate the point-of-sale rebate, the program administrator shall approve eligible retailers to sell the qualified flexible demand appliances.

(5) The program shall be designed to authorize incentive layering with existing other incentives for energy efficiency and demand response programs and technologies.

(6)The program shall be cost effective as described in paragraph (3) of subdivision (f) of Section 25402.

(7)All qualified flexible demand appliances shall work with eligible load-management programs.

(c)The program administrator shall establish a public list with all of the following information related to the program:

(1)Qualified flexible demand appliances approved by the commission for the program.

(2)Eligible retailers approved by the program administrator, including the name, location, and contact information for each retailer.

(3)Eligible load-management programs that have the ability to control the qualified flexible demand appliances, including the name, location, and contact information for each load-management program.

(d)(1)The program administrator shall provide outreach to low-income households and low-income and disadvantaged communities to increase ratepayer awareness of the program.

(2)The program administrator shall work directly with community-based organizations for marketing, education, and outreach efforts of the program.

(e)Nothing in this section is intended to supplant CARE program rates as the primary mechanism for achieving the goals of the CARE program.

(f)On or before July 30, ____, and annually thereafter, through ____, the commission shall submit to the Legislature an assessment of the program. That assessment shall include the number of qualified flexible demand appliances that received an incentive pursuant to the program and the dollar value of the incentives, the energy and bill reduction outcomes of the program for the participants, the program’s cost, the program’s environmental benefits, the program’s impact on the CARE program budget, and recommendations for improving the program to meet its goals. Each assessment shall be submitted in compliance with Section 9795 of the Government Code.

(g)Every ____ years, the commission shall evaluate the program’s expenditures, commitments, uncommitted balances, future demands, performance, and outcomes, and shall make any necessary adjustments to the program to ensure the goals of the program are being met. If, upon review, the commission finds there is insufficient participation in the program, the commission may credit uncommitted funds back to ____.

(c) Each large electrical corporation shall provide outreach to qualified ratepayers to increase ratepayer awareness of the program.
(d) (1) The commission shall require each large electrical corporation to identify the large electrical corporation’s carryover amount of unspent and uncommitted moneys from its Energy Savings Assistance Program budget as of December 31, 2020. This carryover amount shall not include any unspent moneys that have been consigned by the commission, as of December 31, 2020, but not yet spent.
(2) The commission shall determine the appropriate portion of the carryover amount of those moneys to be allocated for purposes of the program, and shall require that portion of those moneys to be allocated and spent for purposes of the program.
(e) The commission shall not increase rates or impose or increase a charge for purposes of this section. This section shall not result in any ratepayer paying an increased rate.
(f) Upon the allocation of all the moneys available for the program, the commission shall notify the appropriate policy committees of the Legislature.

SEC. 4.

 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.