Staff Report Item 15
Staff Report Item 15
TO: East Bay Community Energy Board of Directors
FROM: Melissa Brandt, Vice President of Public Policy & Deputy General Counsel SUBJECT: Approval of Legislative Positions (Action Item) DATE: April 20, 2022
__________________________________________________________________ Recommendation
Receive an update on EBCE’s Legislative Program and take a “support” position on Assembly Bill (“AB”) 1960 (Villapudua), AB 2070 (Bauer-Kahan), AB 2667 (Friedman), AB 2765 (Santiago), and Senate Bill (“SB”) 1112 (Becker), and an “oppose” position on SB 1393 (Archuleta).
Background and Discussion
In July 2018 the EBCE Board approved a Legislative Program which outlined three general legislative principles and five more specific public policy positions, as well as guidance for legislative policy coordination. The Legislative Program, last updated in 2021, has again been updated with a few clarifications and edits to names/addresses, however the principles and positions are the same. EBCE’s updated Legislative Program is provided for reference as an attachment to this item.
At the February 16, 2022 EBCE Board Meeting, the Board approved taking a “support” position on AB 1814 (Grayson). AB 1814 has recently been withdrawn by the author and will not be moving forward due to general lack of support from members on the Assembly Utilities and Energy Committee.
Recommended EBCE Bill Positions:
• SUPPORT: AB 1960 (Villapudua), would attempt to provide more regional diversity when selecting California Public Utilities Commission (“CPUC”) commissioners, by encouraging, not requiring, the Senate and the Governor to consider permanent residents of northern, southern and the central valley regions of the state. A regionally diverse CPUC is more likely to be attuned to Staff Report Item 15
the various concerns of EBCE’s diverse communities. Villapudua is a member of EBCE’s legislative delegation.
• SUPPORT: AB 2070 (Bauer-Kahan) would require electrical corporations to notify fire protection districts at least 24 hours before initiating deenergization events. Receiving advance notice will allow our fire protection districts to adequately prepare for the deenergization event and enable notice to other local government entities including cities and EBCE, to help provide needed services to mitigate some of the ill effects of the deenergization event on the residents of the affected areas. Bauer-Kahan is a member of EBCE’s legislative delegation.
• SUPPORT: AB 2667 (Friedman) would require the California Energy Commission (“CEC”) to establish in the state Treasury and administer an Integrated Distributed Energy Resources Fund to incentivize eligible resources to support statewide consumer adoption of clean distributed energy resources (“DERs”).
Resources eligible for incentives under the fund would include customer demand management, managed charging of electric vehicles, clean backup power, and other DERs that would achieve greenhouse gas emissions reductions. The CEC would be required to establish a system to equitably award incentives. Furthermore, the CEC would be required to establish a process to allow a load-serving entity (“LSE”) such as EBCE to apply for incentives on behalf of a customer(s) as part of that LSE's customer program to reduce its resource adequacy (“RA”) obligations. EBCE has current programs underway such as the Resilient Home program to manage our load and reduce our RA obligations, and under this bill we would be able to apply for incentives from the fund, which could lower the costs of our load management programs and enable us to undertake more load management in the future. • SUPPORT: AB 2765 (Santiago) would establish a taxpayer-funded Public Utilities Public Purpose Programs Fund, and would require the CPUC to use the fund to pay for the Family Electric Rate Assistance (FERA) program, programs currently funded through an electrical corporation’s public purpose program rate component including the California Alternate Rates for Energy (CARE) program, and other programs determined by the CPUC to provide public benefits. If the fund does not have sufficient moneys for those purposes, the bill would authorize the CPUC to permit electrical corporations to recover the costs of those programs from ratepayers, as they do today through a charge on electric service, which is collected through customer delivery rates. This bill would lower the electric delivery rates for all customers including EBCE customers, helping both with customer bill affordability and service disconnection rates, and supporting the growth of electrification by keeping electricity costs competitive.
Staff Report Item 15
• SUPPORT: SB 1112 (Becker) would encourage the creation of Tariffed On-Bill (“TOB”) investment programs to make low-cost capital widely available for climate-beneficial building upgrades so that upfront costs or lack of access to credit do not get in the way of upgrading buildings. The bill would address a technical fix that might otherwise impede the creation of TOB programs – ensuring proper notification for renters and home buyers – and further direct the CEC to explore how the state and LSEs can leverage existing and future federal funds and existing state programs to make low-cost financing available to TOB investment programs. EBCE is exploring how to use TOB financing to increase energy efficiency and building electrification in our jurisdiction. EBCE customers would also benefit from any federal or state funds identified and made available to support low-cost financing for TOB investment. • OPPOSE: SB 1393 (Archuleta) would require local governments to obtain approval from the CEC for local requirements that mandate the replacement of fossil fuel appliances with electric appliances in existing buildings. This bill would prohibit the CEC from approving a local government’s retrofit requirement if the CEC finds that the requirement, or a portion of the requirement, is not technically feasible, is not cost effective, disproportionately impacts low and median income consumers, adversely impacts a skilled and trained workforce, or increases costs for ratepayers of a local publicly owned electric utility or electrical corporation. This bill would discourage local governments from adopting ordinances aimed at electrifying communities, and could restrict the authority of EBCE’s cities to support reach codes including efforts to mandate certain retrofits.
Fiscal Impact
AB 2667 may result in additional funding for load management through the CEC.
AB 2765 may result in lower customer utility delivery charges.
SB 1112 may result in additional funding for lowering TOB financing costs.
Attachments:
A. April 20, 2022 Legislative Update
B. EBCE Legislative Program
C. Author Fact Sheets
Legislative
Update
APRIL 20. 2022
Attachment Staff Report Item 15A
Legislative Highlights
• Update from Weideman Group on the 2022 Legislative Year • Update on AB 1814
• New Recommended Bill Positions: AB 1960, AB 2070, AB 2667, AB 2765, SB 1112, SB 1393
Attachment Staff Report Item 15A
Key Deadlines for the 2022 Legislative Year
• 1/3: Legislature reconvened
• 1/10: Governor submitted budget
• 1/31: Deadline to move 2-year bills out of 1st house
• 2/18: Bill introduction deadline
• 4/29: Policy cmtes to move fiscal bills to fiscal cmtes (1st house) • 5/6: Policy cmtes to move nonfiscal bills to floor (1st house) • 5/20: Fiscal cmtes must move bills to floor (1st house) • 5/27: Last day for bills to be passed out of 1st house • 6/15: Budget bill must be passed
• 7/1: Policy cmtes to meet and report bills (2nd house) • 8/12: Fiscal cmtes to move bills to floor (2nd house) • 8/31: Last day for each house to pass bills
• 9/30: Last day for Governor to sign/veto bills
Attachment Staff Report Item 15A
Legislature – State of Play
• Democratic super majorities
• Redistricting not expected to change dynamics
• High levels of turnover now and expected
• Election year, but Governor in strong position
• Budget surpluses driving agenda
• Energy likely to be a policy theme in Senate, Assembly Attachment Staff Report Item 15A
2022 Legislative Themes
• Clean energy – near-term, long-term
• Climate change and impacts
• Wildfire, extreme heat, corporate disclosures
• Zero emission vehicles, infrastructure
• Green hydrogen
• Carbon capture and sequestration
• Jobs and labor
• Equity
Attachment Staff Report Item 15A
Gov’s Proposed Budget: $22B in New Climate Funding
• $6.1B – Zero emission vehicles (ZEVs), esp. “big ZEVs” • $9.1B – Transit and other transportation projects
• $2B – Clean energy package
• Long duration storage ($380 M), green hydrogen ($100 M), industrial decarbonization ($210 M), food processing facilities ($85 M), offshore wind ($45 M), Orville dam pumped hydro ($240 M), equitable building decarbonization ($962 M)
• $1B – Sustainable communities/housing
• $1B – Energy Innovation Headquarters and green energy tax credits • $1.2B – Wildfire and forest resilience
• $750M – Drought resilience and response
• $2.5B – Nature-based solutions, climate resilience, climate smart ag, circular economy Attachment Staff Report Item 15A
Recommended Bill Positions
Bill # Author Description Sponsor Status
Recommended
EBCE Position
AB 1960 Villapudua
Encourages the Senate and the Governor to consider permanent residents of northern, southern and the central valley regions of the state to provide more regional diversity among CPUC commissioners.
Asm Consent
Calendar SUPPORT
AB 2070 Bauer-Kahan
Requires an electrical corporation to notify the fire protection district 24+ hours before deenergization or else face penalties.
Asm U&E
Cmte 4/20 SUPPORT
AB 2667 Friedman
Establishes and requires CEC to administer state IDER Fund to incentivize eligible resources to support consumer adoption of clean DERs, creates a system to equitably award incentives, and establishes a process to allow an LSE to apply for incentives on behalf of a customer as part of that LSE's program to reduce its RA obligations.
NRG / EDF Asm U&E
Cmte 4/6
SUPPORT
AB 2765 Santiago
Creates a new fund to cover the costs of CPUC Public Purpose Programs including energy efficiency, conservation, CARE, and FERA, instead of continuing to rely on customer delivery rates.
Asm U&E
Cmte 4/20 SUPPORT
SB 1112 Becker
Requires energy suppliers (including CCAs) offering decarb programs to record a decarb charge notice, then notice of full cost recovery, then notice of charge removal with the project's county.
Sen EUC
Cmte SUPPORT
SB 1393 Archuleta Requires local jurisdictions to apply for CEC approval before mandating that retrofits to a bldg. must upgrade fossil appliances to electric.
Sen Gov & F
Cmte 4/21 OPPOSE
Attachment Staff Report Item 15A
Bill Tracker - Assembly
Bill # Author Description Sponsor Status
EBCE
Position
AB 1814 Grayson Authorizes CCAs to file applications for PUC programs and investments to accelerate widespread transportation electrification. CalCCA Author withdrawn SUPPORT
AB 2061 Ting Requires data disclosure on EV charging station availability for stations using public or ratepayer money and requires the CEC to assess reliability and equitable access issues.
Asm Transp
Cmte 3/28
AB 2587 E.Garcia
Requires the CPUC to open a proceeding related to procurement of firm zero-carbon resources, based on the findings of the CEC’s report to the Legislature on CA policy that customers are served by 100% renewable and zero-carbon resources by 2045.
Asm U&E
Cmte 4/6
AB 2700 McCarty
Requires IOUs and POUs to ensure that their distribution systems are upgraded to support the state’s anticipated level of EV charging; requires the CPUC to develop an expedited process to ensure that IOUs can meet the requirements to upgrade, and to direct IOUs to expedite interconnection; requires CARB to share fleet data to inform electrical grid planning and requires CEC to forecast distribution needs for DERs.
Asm U&E
Cmte
AB 2703 Muratsuchi Establishes reliability standards for ZEV refueling/charging stations. Asm Transp Cmte 4/18
Attachment Staff Report Item 15A
Bill Tracker - Senate
Bill # Author Description Sponsor Status
EBCE
Position
SB 45 Portantino Requires Dept of Res Recycling and Recovery to analyze progress in achieving organic waste reduction goals and assist local jurisdictions with funding to comply.
Asm pending
cmte referral
SB 833 Dodd
Community Energy Resiliency Act of 2022: requires the CEC to develop and implement a grant program for local govts to develop community energy resilience plans and expedite permit review of DERs.
The Climate
Center
Sen Approps
suspense file
SB 881 Min Gives CPUC authority to monitor compliance with LSE's IRP GHG emission reductions and penalties/CPUC-ordered procurement for non-compliance. UCS Sen Approps Cmte 4/18
SB 1158 Becker
Changes the Power Source Disclosure rules to require utilities and CCAs to report comparisons of their energy and capacity purchases with their electricity demand on an hourly basis including the associated GHG emissions.
Sen EUC
Cmte 4/18
SB 1287 Bradford
Requires the CPUC to update the financial security requirements for ESPs and CCAs to include costs for no less than 12 months of incremental procurement incurred by the provider of last resort, upon the customers’ involuntary return.
Sen EUC
Cmte
SB 1482 Allen Requires mandatory building standards for installation of EV charging infrastructure for parking spaces in new multifamily units. Acterra Sen Transp Cmte 4/26
Attachment Staff Report Item 15A
Next Steps
• Review and analyze new amendments
• Monitor bills on our watch list; determine when EBCE should formally take a position
• Send position letters for bills once EBCE formally takes a position
• Monitor Governor’s Budget request, which includes $6.1B over 5 years for Zero Emission Vehicles (ZEV)
• Engage with CalCCA on legislative efforts
Attachment Staff Report Item 15A
LEGISLATIVE PROGRAM – July 2018
E: [email protected]
ebce.org
Legislative
Program
State and Federal Policy Priorities
Attachment Staff Report Item 15B
2 LEGISLATIVE PROGRAM – updated April 2022
Contents
I. Introduction .................................................................................................. 3 II. EBCE Board of Directors................................................................................. 4 III. Contact Information ...................................................................................... 5 Mailing Address........................................................................................................................................ 5 Program Staff ........................................................................................................................................... 5 IV. Legislative Advocates .................................................................................... 6 State Legislative Advocate ....................................................................................................................... 6 V. General Legislative Principles ........................................................................ 7 Accelerating Decarbonization .................................................................................................................. 7 Promoting Local Development................................................................................................................. 7 Stabilizing Community Choice.................................................................................................................. 7 VI. EBCE Public Policy Positions........................................................................... 8
1.1 Nonbypassable Charges..................................................................................................................... 8
1.2 Disadvantaged Communities.............................................................................................................. 8
1.3 Environmental Sustainability.............................................................................................................. 8
1.4 Finance ............................................................................................................................................... 9
1.5 Educational, Neighborhood and Social Services ................................................................................ 9 VII. Legislative Program Coordination................................................................10 Attachment Staff Report Item 15B
3 LEGISLATIVE PROGRAM – updated April 2022
Introduction
The East Bay Community Energy Legislative Program outlines the legislative priorities and stances of East Bay Community Energy (“EBCE”) with the intent to inform customers, representatives, and policymakers of EBCE’s stances on the myriad of public policies that intersect with EBCE’s priorities, programs, and services. These priorities are applicable to legislation, statewide referenda, grant funding opportunities, and local ballot initiatives.
EBCE has three major legislative priorities: Accelerating Decarbonization, Promoting Local Development, and Stabilizing Community Choice. EBCE support of legislation will be contingent upon that legislation adhering to these priorities as well as EBCE’s priorities.
Moreover, EBCE supports any and all policies that will preserve or enhance the ability of EBCE to promote these priorities at the local level.
This document provides direction to EBCE’s legislative advocates in Sacramento. Additionally, this document serves as the foundation for any EBCE Board action regarding Federal or State legislation or funding opportunity. Staff may draft letters, direct our legislative advocates, or speak on behalf of EBCE regarding the legislative priorities this document outlines.
Any correspondence signifying EBCE’s support or opposition of a given bill must be approved by the EBCE Board of Directors, the Board’s Executive Committee, or the CEO in accordance with the delegation of authority provided by the Board to the CEO on time-sensitive matters.
Any questions regarding this Legislative Program can be directed to Melissa Brandt, Vice President of Public Policy and Deputy General Counsel, at 510-570-5110 or [email protected].
Sincerely,
Nick Chaset
Chief Executive Officer, EBCE
Attachment Staff Report Item 15B
4 LEGISLATIVE PROGRAM– updated April 2022
EBCE Board of Directors
Alameda County
Supervisor Richard Valle
Albany
Council Member Aaron Tiedmann
Berkeley
Vice Mayor Kate Harrison
Dublin
Council Member Shawn Kumagai
Emeryville
Mayor Dianne Martinez, Chair
Fremont
Mayor Lily Mei
Hayward
Council Member Elisa Marquez
Livermore
Vice Mayor Patricia Munro
Newark
Council Member Mike Hannon
Oakland
Council Member Dan Kalb
Piedmont
Council Member Conna McCarthy
Pleasanton
Council Member Kathy Narum
San Leandro
Council Member Corina Lopez, Vice Chair
Tracy
Council Member Dan Arriola
Union City
Council Member Jaime Patino
Community Advisory Committee (non-voting)
Anne Olivia Eldred, Chair
Attachment Staff Report Item 15B
5 LEGISLATIVE PROGRAM – updated April 2022
Contact Information
Mailing Address
1999 Harrison Street, Suite 800
Oakland, CA 94612
Program Staff
Chief Executive Officer
Nick Chaset
510-809-7440
[email protected]
Vice President of Public Policy and Deputy General Counsel Melissa Brandt
510-570-5110
[email protected]
Associate Policy Manager
Alec Ward
510-250-3094
[email protected]
Attachment Staff Report Item 15B
6 LEGISLATIVE PROGRAM – updated April 2022
Legislative Advocates
State Legislative Advocate
Weideman Group
Mark Weideman
1215 K Street, Suite 2290
Sacramento, CA 95814
(916) 600-2288
[email protected]
Attachment Staff Report Item 15B
7 LEGISLATIVE PROGRAM – updated April 2022
General Legislative Principles
EBCE has three general legislative principles. These priorities serve as the foundation for all actions EBCE will take, including the lobbying for policies that promote those same guiding priorities.
Public policy encompasses a myriad of subject and topic areas. However, as these policies intersect at the local level, they have the ability to impact EBCE revenues, programs, and/or administrative discretion and control. EBCE will support policies that accelerate decarbonatization, promote local development, stabilize community choice, or any combination thereof. If a given policy does not meet these criteria, EBCE will oppose, support with amendments, or in some cases take no stance on that policy or legislation.
The General Legislative Principles for EBCE are:
Accelerating Decarbonization
• Support the creation or expansion of federal, state, and local policies and programs that enable EBCE to contribute to the State’s efforts to reduce greenhouse gas emissions. • Oppose any legislation, policies, programs, referenda, unfunded mandates and budgets that would have an adverse impact on EBCE’s ability to advance decarbonization through its procurement, programs, projects, and services.
Promoting Local Development
• Support any legislation, policy, referenda, and budgets that enhance community choice energy providers’ ability to invest in local clean energy, distributed energy resources, and zero-emission transportation, and promote equity in the communities that it serves. • Oppose any legislation, policy, referenda, and budgets that limit or undermine EBCE’s ability to invest in local clean energy, distributed energy resources, and zero-emission transportation, and promote equity in the communities that it serves.
Stabilizing Community Choice
• Support any legislation, policies, referenda, and budgets that maintain or improve the stability of community choice energy providers by ensuring regulatory structure is equitable and enables CCE to meet its mission and goals. • Oppose any legislation, policies, referenda, and budgets that undermine or circumvent community choice energy and impede the ability of the agency to achieve its mission and goals or its value proposition.
Attachment Staff Report Item 15B
8 LEGISLATIVE PROGRAM – updated April 2022
EBCE Public Policy Positions
The General Legislative Priorities help identify which public policy positions EBCE will take.
The list of policy positions below is by no means exhaustive. In addition to the general legislative priorities, EBCE takes the following more specific public policy positions:
1.1 Nonbypassable Charges
A. Oppose legislation that restricts or limits EBCE’s ability to procure its own energy products to meet state policy goals.
B. Oppose legislation that increases or is likely to lead to an increase in nonbypassable charges.
C. Support legislation that promotes a level playing field between community choice aggregators and other market participants.
D. Support legislation that enhances the flexibility of community choice energy providers to support statewide procurement policy and develop and expand programs, local options, and rate design to support EBCE’s community and customers.
1.2 Disadvantaged Communities
A. Support legislation and initiatives that boost funding for new energy projects that support disadvantaged communities and low-income customers within EBCE’s service territory.
B. Support legislation and initiatives that increase access and funding for energy-related programs serving disadvantaged communities.
C. Support legislation and initiatives that would reduce local air pollution, reduce other negative local impacts associated with energy production, and boost adoption of distributed energy resources within disadvantaged communities.
D. Oppose legislation and initiatives that have the potential to disproportionately and negatively impact EBCE’s disadvantaged communities and/or low-income customers.
1.3 Environmental Sustainability
A. Support legislation and initiatives that increase funding for the creation of sustainable and stable energy supply infrastructure.
B. Support legislation and initiatives that encourage the conservation of energy resources as well as the development of dynamic load-shifting capabilities.
C. Support legislation and funding for renewable and advanced energy technology that increase efficient consumption.
D. Support legislation and funding for pilot energy and resource efficiency programs.
E. Support legislation and initiatives with the goal of reducing and mitigating the effects of climate change and building local resiliency.
Attachment Staff Report Item 15B
9 LEGISLATIVE PROGRAM – updated April 2022
1.4 Finance
A. Support legislation that enhances the financial standing of community choice aggregators and their ability to receive a positive credit rating.
B. Oppose legislation that reduces or removes the tax-exempt status of municipal bonds.
C. Oppose any legislation that would divert community choice energy revenues to the State or other governmental entities.
1.5 Educational, Neighborhood and Social Services
A. Support legislation that aids or helps to fund EBCE to provide energy support services, education, and opportunities for reducing energy costs to people who are low-income, seniors, veterans, and/or people with disabilities.
B. Support legislation and initiatives that increase funding for energy efficiency, demand response, solar plus storage, and transportation electrification programs, and energy literacy services.
Attachment Staff Report Item 15B
10 LEGISLATIVE PROGRAM – updated April 2022
Legislative Program Coordination
Legislation can be brought to the attention of EBCE through a variety of channels:
• State Legislative Advocates
• Elected Representatives
• CalCCA
• EBCE Board Members
• EBCE Staff
• EBCE Community Advisory Committee
• EBCE Customers and Community Members
• Other Governmental Associations
All legislative requests for support or opposition will be directed toward EBCE’s Public Policy department. EBCE staff will then review the legislation in coordination with any relevant departments to analyze whether or not the legislation aligns with EBCE’s general legislative priorities. Staff will then monitor and track the legislation, providing updates when necessary.
Concurrent with this evaluation, EBCE’s Public Policy department will recommend a position and course of action. There are six main levels of action, which may be taken independently or in combination, but all of which are coordinated by the Vice President of Public Policy or their designee:
1. Direction to lobbyists to advocate in support, support with changes, or opposition to legislation
• Pursuant to direction from the EBCE Board of Directors, the Board’s Executive Committee, or the CEO in accordance with the delegation of authority provided by the Board to the CEO on time-sensitive matters, EBCE staff will notify lobbyists of EBCE’s stance on legislation and direct them to take appropriate action with legislators. EBCE may remain neutral on a given piece of legislation.
2. EBCE correspondence with relevant legislators
• In conjunction with providing direction to lobbyists once EBCE has determined its stance on legislation, EBCE staff will send a support or opposition letter to the appropriate legislators.
3. EBCE Board-approved resolution
• EBCE staff will draft a staff report and resolution for consideration by the full EBCE Board of Directors. Approved resolutions will be forwarded along with a letter signed by the Chief Executive Officer or his/her designee to the appropriate legislators.
4. EBCE Board outreach
• EBCE staff will draft talking points and other relevant information for individual Board Members to personally contact appropriate legislators to advocate on behalf of EBCE.
5. Travel to Sacramento or Washington, D.C
• EBCE staff and/or Board Members may decide to advocate in person. Staff will coordinate with the appropriate lobbyists to organize meetings or attendance at other lobbying events.
6. Draft or Sponsor Specific Legislation
• EBCE staff and legislative advocates will work with EBCE’s legislative representatives to articulate EBCE’s stance on a policy and to ensure said stance is codified in statute.
Attachment Staff Report Item 15B
Office of Assemblymember Carlos Villapudua, Updated 03.15.22
CARLOS VILLAPUDUA
CA Public Utilies Reform (Divesrity of Thought)
AB 1960
ASSEMBLYMEMBER, DISTRICT 13
SUMMARY
Assembly Bill 1960 will advance a more geographically diverse perspective at the California Public Utilities Commission (CPUC) to guarantee that proper energy infrastructure investments meet the needs of every community across the state.
BACKGROUND
The decisions the CPUC makes has an impact on
every Californian. Contrary to other regulatory
commissions, the CPUC is the only one that lacks the
requirement for the Governor to appoint
commissioners based on specific background
experience or regional perspective leading to a true
lack of diversity of thought.
An estimated 68% of commissioners spanning
almost two decades have not been representative of
regions like the Central Valley or any other
underrepresented communities. While three of the
commissioners currently reside in Sacramento,
Sacramento’s municipal electric utility is not
overseen by the CPUC. This means that without a
variety of regional diverse thoughts, the
commission’s decisions often only reflect a one-size
fits all view leading to higher energy costs.
Similarly, the CPUC’s actions often do not align with
legislative and gubernatorial direction. Often, the
CPUC has either been slow to act on or acted
contrary to legislative requirements intended by the
State Legislature. These decisions have far-reaching
consequences for the majority of Californians and
without the perspective of different regions with
varied climate zones, the Commission remains blind
to the needs and impacts of millions of ratepayers in
hotter climate zones that are often the state’s most
vulnerable populations.
To Illustrate, AB 2672 (Perea; Chapter 616, Statutes
of 2014) was created with the motive to make gas
extensions in San Joaquin Valley more affordable.
After years of consideration, the CPUC interpreted
“ other alternatives” and “deemed it appropriate by
the CPUC” to take away choice from propane
consumers to switch to natural gas energy and
instead promoted electrical service which resulted
in higher electric bills and increased greenhouse gas
(GHG) emissions in disenfranchised communities.
PROBLEM
The California Public Utilities Commission (CPUC)
is a constitutionally created entity that promulgaltes
rules and regulates transportation, communications,
and utility industires, but in the last 17 years, there has not been a single Commissioner appointed from
the San Joaquin or Central Valley, a rural town, or
low-income or disadvantaged community.
We are living in a time of significant innovation and
transition in the energy industry as the state
urgently seeks to mitigate the impact of climate
change. In this context, now more than ever, it is
imperative that the CPUC reflect every Californian
so that a deeper awareness is central as they set
energy policy.
SOLUTION
Similar to current background and regional
requirements for the California Energy
Commission, State Water Resources Control Board,
Board Of Equalization and California Air Resources
Board, AB 1960 will increase perspectives among the
CPUC commissioners by requiring future Governor
Attachment Staff Report Item 15C
Office of Assemblymember Carlos Villapudua, Updated 03.15.22
CARLOS VILLAPUDUA
CA Public Utilies Reform (Divesrity of Thought)
AB 1960
ASSEMBLYMEMBER, DISTRICT 13
Appointees to reside in each of the following areas:
Northern California, Central Valley, and Southern
California. By doing so, California can achieve
better regional representation, provide diversity of
thought, a more expansive knowledge of utility and
energy experiences, and ultimately make better
informed decisions about the different energy needs
of every community across the state.
SUPPORT
Sempra Energy Utilities
San Diego Gas and Electric (SDG&E)
Southern California Gas (SoCal Gas)
STAFF CONTACT
Breanne Lavell, [email protected]
Israel Landa [email protected]
(916) 319-2013
Attachment Staff Report Item 15C
AB 2070 – Utility Notification
Summary
AB 2070 will require all electrical utilities to notify local fire districts at least 24 hours before conducting mitigation or planned burns in a high fire risk area.
Background
2020 was California’s worst fire season in modern
history1. By the end of the year, over 10,000 wildfires had burned more than 4.2 million acres of land in
California. Additionally, an exceeding 4 percent of
all land in the state was burned by wildfires2. Climate change has made our fire season much less
predictable, and has contributed to both the intensity
and duration of wildfires that our state faces. Over
2.7 million people in California live in a Fire Hazard
Severity Zone. The Camp Fire of 2018, killed 85
people and was the most damaging fire in our state's
history as well as the most expensive natural disaster
in the world of that year. It is clear that wildfires and other related natural disasters are a way of life in
California and only growing in intensity.
Utility companies manage vegetation and repair
infrastructure in order to help prevent future fires.
However, much of this work is done in high fire areas
next to and around businesses and family homes, and
the work risks causing fires itself. A common method
of fire prevention is a “controlled burn”. This is when a team will set a fire intentionally, in order to make
that area less susceptible to wildfires in the future.
1 https://www.theguardian.com/us-news/2020/dec/30/california-wildfires-north-complex-record Problem
Currently, controlled burns and dangerous work is
being conducted in areas with a designated high fire
risk without the collaboration of the local fire district to protect the local area.
Solution
Utilities must provide clear communication and
collaboration with fire districts locally. Cities of San Ramon and Orinda have passed local ordinances
which require electrical utilities to notify the fire
district during maintenance in a fire risk zone. This
bill would take that model statewide for high-risk fire zones.
What this bill does
AB 2070 requires that electrical utilities notify local fire districts 24 hours before any fire safety or
mitigation services within a high fire risk area.
To prevent fires, collaboration and coordination of
resources is paramount, and this is a commonsense
practical measure to ensure that occurs.
Support:
San Ramon Valley Fire Protection District
Contact
Estefani Avila
Senior Legislative Aide
[email protected]
916-319-2016
2https://www.fire.ca.gov/incidents/2020/#:~:text=As%20of%20the%20end%2 0of,gigafire%22%20as%20the%20area%20burned
Attachment Staff Report Item 15C
AB 2667 – Integrated Distributed Energy Resources Fund
Summary
AB 2667 would create an Integrated Distributed Energy
Resources incentive program at the California Energy
Commission to support statewide customer adoption of
clean distributed energy resources with a technology-neutral approach to further the State’s collective goals on reliability, resiliency, decarbonization, and equity. The bill would allow all customers to deploy more clean
distributed energy resources options to meet the
customer’s needs and better align customer value with
collective policy goals.
Background
Distributed Energy Resources (DER) refer to a class of
decentralized customer energy products, services, and
technologies. DERs can provide a superior quality of
energy service when compared to the electric grid. DERs include customer demand management, small-scale
renewable generation, energy storage, smart charging of electric vehicles, clean backup power, and even mobile
power stations to meet emergency management needs.
California supports the deployment of clean distributed energy resources. Customers buy these resources for a
variety of reasons, including to have greater electric
reliability and to achieve their clean energy objectives, the resources are cost-effective over the life of the asset, but incentives are needed to overcome the upfront
purchasing costs. Access and availability of incentive
support for customer adoption can vary across different parts of the state, depending on the retail provider, the need of the customer segment, and technology-based
eligibility guidelines.
Certain distributed generation and storage technologies are designed to be interconnected to the grid and can
feed power back onto the grid. Still others are designed to support solely on-site needs or provide backup power as needed. With a wider variety of options, customers
and their retail providers can customize different
solutions, including product content, reliability, and
other services.
As the state moves to electrify more of its economy,
including its zero emission vehicles, integrating DER
deployment to meet the increased electric vehicle
charging needs will enhance our ability to reduce
greenhouse gas emissions and mobile-source pollutants
in environmentally impacted communities.
Furthermore, as California faces an increased frequency of extreme weather events, wildfire-triggered outages,
and global geopolitical instability with cyber intrusion risks of critical sectors, it is time innovate the adoption of clean DERs across all customer segments.
AB 2667_________ (as amended on March 15, 2022):
● Creates an Integrated Distributed Energy incentive
program at California Energy Commission with a set of
prioritized functional attributes to support reliability, decarbonization, resiliency, and equity goals.
● Allows retail providers to directly apply for funding on behalf of customers and use DER resources in an
integrative manner to support both customer and grid
needs.
Support______________________________________
Environmental Defense Fund
Mainspring Energy
NRG Energy
Contact
Jim Metropulos
Office of Assemblymember Laura Friedman
916.319.2043
[email protected]
Attachment Staff Report Item 15C
Status: Assembly Utilities and Energy Committee | Last updated: 4.14.22 Bill Summary
AB 2765 would sunset the Public Purpose
Program (PPP) surcharge on utility customers
and continue the programs with funding from
the State’s General Fund to continue helping
low-income consumers and help meet
California’s climate goals.
Existing Law
Establishes energy efficiency, cost saving, and
rate assistance programs to help reduce energy
costs for consumers (Public Utilities Code
Section 381, 399.4, 739.1, 739.3; Public
Resources Code Section 25710).
Background
Electric rates continue to increase dramatically
in California. Inflation is hitting goods across
the board, and the economic impacts of the
pandemic and the Russian invasion of Ukraine
are causing financial challenges for many
Californians, especially at the gas pump and on
their utility bills.
California’s PPP includes cost-effective energy
efficiency, conservation, and rate assistance
programs to help meet the state’s climate goals
and subsidize energy costs for low-income
consumers. Electric customers in investor-owned utility (IOU) territories pay for these state-mandated public benefits programs
through a surcharge on their utility bill.
Although the PPP is meant to provide discounts
on utility bills for low-income households, these
same low-income beneficiaries effectively have
to pay into the programs through a monthly
surcharge on their utility bill. For example, the
California Alternate Rates for Energy (CARE)
program provides a monthly discount of up to
35% on electricity for low-income folks and
public assistance recipients. A recipient with an
electric utility bill of $121 would receive about
$42 in CARE assistance, a total savings of 35%
on their utility bill. However, that same
ratepayer forgoes 3% of their 35% CARE savings
by paying a utility surcharge into the PPP. This
surcharge takes away savings from the
population the CARE program is meant to
serve.
Need for AB 2765
In California, high electric bills are hitting low-income households hard. Their utility bills are saturated with various add-on costs that don’t
actually reflect the cost of supplying electricity.
These add-ons include low-income support
programs, subsidies for clean energy and EV
charging stations, climate change adaptation
costs, and more.
One of the best ways to help the working poor
is by reducing their utility bills and taking some
of these costs out of electricity prices to make
them more closely reflect their true social cost.
Attachment Staff Report Item 15C
Status: Assembly Utilities and Energy Committee | Last updated: 4.14.22 Since the PPP benefits accrue to everyone in
California, it is more appropriate for all
taxpayers to fund these programs, not just a
subset of electrical and gas customers.
Furthermore, if all taxpayers paid for the PPP,
then electric customers would pay lower utility
bills, especially low-income households. For
example, as of January 1, 2022, if public
purpose program costs were removed from San
Diego Gas & Electric’s electric rates, system
average rates would be 6% lower. Removing
just the low-income portion of the PPP costs
would lower system average rates by 3.5%.
To ensure that the cost of the PPP is equitably
distributed, AB 2765 would sunset the PPP
surcharge on utility customers and continue the
programs with funding from the State’s General
Fund, thus reducing the cost of utility bills for
low-income utility customers experiencing
rising energy costs and equitably distributing
the costs of achieving California’s climate goals.
Support
Coalition of California Utility Employees
California State Association of Electrical
Workers
San Diego Gas & Electric Company
Opposition
The Utility Reform Network (Unless Amended)
For More Information
Tom Steel, Legislative Aide
Office of Assembly Member Santiago
(916) 319-2053 | [email protected]
Attachment Staff Report Item 15C
Fact sheet for SB 1112 (Becker): Tariffed On-Bill Investment Enablement 3/25/2022 ‘
SB 1112 – Tariffed On-Bill Investment Enablement
IN BRIEF
SB 1112 encourages the creation of Tariffed On-Bill (TOB) investment programs as a way to make low-cost capital for climate-beneficial building upgrades widely available so that upfront costs or lack of access to credit do not get in the way of improving our buildings and advancing our climate goals. It does this by addressing a technical fix that might impede the creation of TOB programs (ensuring proper
notification for renters and home buyers) and by directing the CEC to explore how the state and its utilities can
leverage existing and future federal funds and existing state programs to make low-cost financing available to TOB
investment programs.
THE PROBLEM
According to a report by the Building Decarbonization
Coalition, approximately 6 million households, 4 million of which are low-income, lack ready access to private capital for upgrading their homes with climate-beneficial
appliances.
1 While financial incentives are helpful in lowering upfront investment costs, customers still need access to capital to fund the balance, and they can often be disqualified due to high debt-to-income ratios, poor credit, low home equity, or renter status. Utility TOB investment is a proven, scalable model that is currently being used to accelerate customer adoption of energy and water efficiency measures in utility programs operating across the county. This model allows ratepayers to make upgrades in their homes, not through a loan, but through utility investment, for which cost recovery is tied to the utility meter, according to terms set forth in a utility tariff. The tariff charge remains attached to the meter at the improved home, regardless of who occupies the
property, until utility cost recovery is complete. This investment model thus enables the sponsoring utility to offer nearly universal access to capital to its customers.
Currently, utilities in California do not offer TOB
investment programs to customers, but there are
proceedings underway to establish creative solutions to financing clean energy investments in California
households. The Public Utility Commission has begun an
open proceeding (R 20-08-022), related to Clean Energy
Finance, which may allow for customers to have access to TOB investment for climate-beneficial building upgrades.
This proceeding will likely lead to establishing a program that benefits utility and CCA customers by providing clear guidance on decarbonization installations and authority to 1https://www.buildingdecarb.org/uploads/3/0/7/3/30734489/bdc_whitepa per_final_small.pdf
attach payback to the meter and allowing payback to occur over a longer period of time than is currently offered in the private market.
If the proceeding concludes expeditiously, California could deploy TOB programs to access billions of dollars from the federal government for decarbonization projects throughout the state.
However, for the PUC to be successful, there needs be
authority in the law to address the issue of ensuring proper notification to successor customers about bill charges when there is a change in home ownership or tenancy.
Specifically, decarbonization upgrades must be added to the list of authorized home improvements that may be recorded on the title documentation for a residence by the county recorder. The same requirement exists for a similar TOB program that was enacted by SB 564 (McGuire, 2017) to
fund water conservation improvements.
THE SOLUTION
SB 1112 will address the issue of notifying successor
customers of TOB investment by requiring that utilities and CCAs give a notice of a decarbonization charge, associated with a decarbonization upgrade, to their county recorder within 10 days of funding the upgrade. This bill also
requires that when a property is not owner-occupied, the property owner must disclose the terms of the
decarbonization charge to new tenants as part of the
information provided prior to leasing or licensing the
property.
SB 1112 also directs the CEC to identify federal funding and existing state programs that could be used to provide low-cost financing via TOB programs, such as loan
guarantees offered by the U.S. Department of Energy under the Infrastructure Investment and Jobs Act. It also directs the CEC to provide technical assistance to utilities to apply for available low-cost financing.
Senator Josh Becker, 13th Senate District
Attachment Staff Report Item 15C
SUPPORT
350 Sacramento
Acterra
Benisol LLC
Carbon Free Palo Alto
Carbon Free Silicon Valley
CEDMC
Foundation for Climate Restoration
Menlo Spark
Project Green Home
Silicon Valley Clean Energy
Silicon Valley Youth Climate Action Team
Sonoma Clean Power
FOR MORE INFORMATION
Ken Branson
(650) 823-6177
[email protected]
Attachment Staff Report Item 15C