TO: East Bay Community Energy Board of Directors
FROM: Melissa Brandt, Vice President of Public Policy and Deputy General Counsel
SUBJECT: Approval of Legislative Positions (Action Item) DATE: June 24, 2022
__________________________________________________________________ Recommendation
Take a “support” position on Senate Bill (“SB”) 1063 (Skinner), take an “oppose unless amended” position on SB 1136 (Portantino), and move to an “oppose unless amended” position on Assembly Bill (“AB”) 2667.
Background and Discussion
At the May 18, 2022, EBCE Board Meeting, the Board approved taking a “support” position on AB 2765 (Santiago). AB 2765 did not pass out of the Assembly Appropriations Committee by the deadline and is no longer moving forward. SB 1020 (Laird), however, continues to move forward, and EBCE has submitted a position letter with its “support if amended” position along with proposed amendments.
Bills in the legislature continue to be amended at a rapid pace, and with policy committee hearings wrapping up by the end of June before the Legislature’s summer recess, there are a few more bills that warrant taking a position in an expedited manner.
Recommended EBCE bill positions:
• SUPPORT: SB 1063 (Skinner) would allow new appliance standards to be applied more quickly when the California Energy Commission (“CEC”) makes a “good cause” finding that accelerated adoption is warranted. New technology and appliance standards established by the CEC currently have a one-year delay before they can go into effect. Appliance manufacturers are now often able to bring new technologies to market sooner. SB 1063 could accelerate the availability of energy efficient appliances during times of stress on the electrical grid, helping both with reliability and to reduce greenhouse gas emissions.
SB 1063 aligns well with EBCE’s legislative principle of Accelerating Decarbonization and our policy position of Environmental Sustainability, as the legislation would accelerate adoption of new energy efficiency appliances which will conserve energy resources.
Senator Skinner is a member of EBCE’s legislative delegation. The California Energy Commission is supporting the bill.
• OPPOSE UNLESS AMENDED: SB 1136 (Portantino) would expand the California Environmental Quality Act (“CEQA”) such that among other things it would require public agencies such as the California Public Utilities Commission (“CPUC”), at the time of adoption of a rule or regulation requiring compliance with an energy efficiency standard, to perform an environmental analysis of the reasonably foreseeable methods of compliance. According to the CPUC, the bill would impact CPUC-regulated, voluntary energy efficiency (“EE”) programs. The CPUC estimates ongoing costs of about $23.4 million annually (ratepayer funds) for environmental review of EE. These programs provide incentives from utility ratepayer dollars for customers to install energy efficient equipment or adopt more energy efficient processes to achieve energy savings generally above what would otherwise be achieved through state-established building codes and appliance standards. EBCE customers are eligible to participate in PG&E’s EE programs, and EBCE has also applied to be an administrator of a portion of CPUC-regulated EE. In addition to the role CPUC would likely delegate out to EBCE and other EE program administrators to support its own CEQA obligations, EBCE would be a Responsible Agency for its programs, required to independently review and approve the CPUC’s CEQA document. Requiring environmental analyses of EE projects will increase customer rates and slow down EE programs.
EBCE staff recommends amending SB 1136 such that it no longer references EE.
This aligns with EBCE’s legislative principle of Accelerating Decarbonization by opposing legislation that would have an adverse impact on EBCE’s ability to advance decarbonization including through our programs. It also aligns with the Promoting Local Development principle by opposing legislation that limits or undermines EBCE’s ability to invest in distributed energy resources such as EE in this instance.
SB 1136 is sponsored by the California Building and Construction Trades Council.
• Move to OPPOSE UNLESS AMENDED: AB 2667 (Friedman; EBCE’s current adopted position is “support”) would create a new Integrated Distributed Energy Resources Fund and enable EBCE to apply for incentive dollars to reduce its peak load using distributed energy resources. The bill was recently amended to define an electrical corporation more broadly than current law to include any entity distributing electricity to the public. This could implicate EBCE in the context of its EV charging station projects, subjecting EBCE to much broader CPUC regulation (including rate regulation) as an electrical corporation, akin to the investor-owned utilities, instead of the limited regulatory oversight based on EBCE’s status as a community choice aggregator.
EBCE staff continues to support other aspects of the bill and recommends amending AB 2667 to remove the recent addition of language around defining an electrical corporation, which is not necessary to effectuate the bill’s objectives. This aligns with EBCE’s legislative principle of Stabilizing Community Choice by opposing legislation that undermines or circumvents community choice energy.
AB 2667 is sponsored by NRG Energy and Environmental Defense Fund.
Fiscal Impact
SB 1136 would increase customer costs – the CPUC estimates by $23.4 million annually; increases borne by EBCE customers would be our proportional share of the total.
Attachments:
A. SB 1063 Author’s Fact Sheet
B. June 24, 2022 Legislative Update
Office of Senator Skinner (D-09) SB 1063 Factsheet Last Updated: 04/19/2022
THIS BILL
California is a mecca for technological innovation –
home to global tech companies innovating the
newest devices. This includes state-of-the-art
efficient and “green” appliance technologies that
help California’s homeowners and business owners
use less energy and water and fight climate change.
Despite the fast pace of innovation, California’s
appliance standards process requires long waiting
periods before new technology standards are
adopted.
SB 1063 will help Californians access new
technologies faster by allowing new appliance
standards to be applied more quickly when the CA
Energy Commission makes a “good cause” finding
that accelerated adoption is warranted.
ISSUE
New technology and appliance standards
established by the CA Energy Commission (CEC)
have a one-year delay before they can go into
effect. This rule, established by the Warren-Alquist
Act of 1977, does not take into consideration the
fast pace of technological advancement and
nimbleness of manufacturing available today.
Appliance manufacturers are now often able to
bring new technologies to market before this
mandatory one-year delay.
Additionally, during statewide or regional
emergencies such as heatwaves, drought, or
increased electrical grid demand, the state may
have an interest in expediting the rollout of new
technologies. Removing the mandatory one-year
delay, would allow the Energy Commission to
respond to such emergencies and accelerate the
availability of water-use efficiency technologies
during a drought or of energy efficient appliances
during times of great stress on the electrical grid.
And with the looming climate crisis, the CEC may
wish to work with manufacturers to get climate-beneficial technology in the hands of consumers as soon as technologically feasible.
Other states do not have one-year delays, which
allows new technologies and appliances to become
available for purchase in neighboring states before
they are available in California, thereby risking the
in-state economic benefit from the sale of these
products as our residents look to purchase
elsewhere.
SOLUTION
SB 1063 authorizes the California Energy
Commission, upon a finding of good cause, to make
new technology standards effective sooner than
one year after the date of adoption or revision to
the standard, as long as the new standards are
deemed cost-effective by the manufacturer and the
Commission.
SUPPORT
California Energy Commission (Source)
CONTACT
Kapri Walker
Office of Senator Nancy Skinner
(916) 651-4009| [email protected]
Senate Bill 1063
Flexibility for Energy Innovation
Senator Skinner (SD 9)
Legislative
Update
JUNE 24, 2022
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
Recommended Bill Positions
Bill # Author Description Sponsor Status
Recommended
EBCE Position
SB 1063 Skinner
Authorizes the CEC to make standards for energy- and water-efficient appliances effective sooner than one year after adoption if there’s a finding of good cause.
CEC Asm U&E
Cmte 6/29 SUPPORT
SB 1136 Portantino
Requires specified public agencies to perform an environmental analysis at time of adoption of rule/reg for compliance with an energy efficiency standard; authorizes focused EIR for projects installing pollution control.
CA Bldg and
Construction
Trades Council
Asm Nat Res
Cmte 6/20 OPPOSE UNLESS
AMENDED
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 Energy &
EDF
Sen EUC Cmte
6/21 OPPOSE UNLESS
AMENDED
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 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.
Enrolled 6/10 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.
Flo Sen EUC
Cmte 6/21
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 Sen EUC
Cmte 6/21 SUPPORT
AB 2765 Santiago
Creates a new taxpayer-funded fund to cover the costs of CPUC Public Purpose Programs including energy efficiency and conservation, and arrearage management, instead of continuing to rely on customer delivery rates. Reverts to utility ratepayers if fund isn’t sufficiently funded by the legislature. Excludes CARE/FERA.
Sempra
HELD in Asm
Approps
Cmte SUPPORT
Bill Tracker - Senate
Bill # Author Description Sponsor Status
EBCE
Position
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
Asm U&E
Cmte 6/29
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 HELD in Sen Approps Cmte SB 1020 Laird
Sets interim targets for meeting renewable/zero-carbon goals: 90% by end-2035, 95% by end-2040; 100% for state agencies by 2030. State agencies can comply through their LSE, but LSE procurement for the state agency must meet certain criteria. Establishes new fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates. Establishes new nonprofit public benefit corporation to administer the fund.
Senate
Climate
Change
Working
Group
Asm U&E
Cmte 6/22
SUPPORT IF
AMENDED
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.
Asm U&E
Cmte 6/22 SUPPORT
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.
Asm U&E
Cmte 6/22
SB 1393 Archuleta Requires local jurisdictions to consider CEC guidance before mandating that retrofits to a bldg. must upgrade fossil appliances to electric and to file records with CEC.
Asm U&E
Cmte 6/22 OPPOSE