Staff Report Item 12
Staff Report Item 12
TO: Ava Community Energy Board of Directors
FROM: Alec Ward, Principal Legislative Manager
Feby Boediarto, Policy Analyst
SUBJECT: Approval of Legislative Positions (Action Item) DATE: May 15, 2024
__________________________________________________________________ Recommendation
• Receive an update on Ava’s Legislative Program document. • Take a “support” position on Assembly Bill (“AB”) 817 (Pacheco), AB 2329 (Muratsuchi), AB 2672 (Petrie-Norris), Senate Bill (“SB”) 1130 (Bradford), SB 1095 (Becker), SB 1210 (Skinner), SB 1221 (Min), AB 2779 (Petrie-Norris), SB 1006 (Padilla), SB 1165 (Padilla), and AB 1834 (Garcia).
Background and Discussion
Ava’s Legislative Program Document
In July 2018, Ava’s Board approved a Legislative Program document. It outlined general legislative principles alongside more specific public policy positions. It also gave guidance for legislative policy coordination. The Legislative Program document was last updated in 2023. It has again been updated with clarifications and edits to names/addresses. Principles and positions remain unchanged.
Ava’s updated Legislative Program document is provided for reference as an attachment to this item.
Staff Report Item 12
Recommended Ava Bill Positions:
• Brown Act/ Remote meeting flexibility - SUPPORT: AB 817 (Pacheco) permits a member of a subsidiary body to call in remotely and not disclose their location to the public. This particularly impacts Ava’s Community Advisory Committee (CAC) as an advisory-only body, allowing them to access teleconferencing flexibility while ensuring safety of members. AB 817 implements these teleconferencing provisions until January 1, 2026. The intent of this bill is to create greater participation in Ava’s CAC meetings while retaining and attracting members, especially those with economic and physical limitations, helping stabilize community choice.
• Affordability/ Promoting affordable electric rates - SUPPORT: AB 2329 (Muratsuchi) establishes a Climate Equity Trust Fund (Fund) that could receive state and federal funds for programs to address electrical bill affordability, decarbonization, and clean energy programs. The Fund could receive funding from Cap and Trade as well as penalty revenue from the California Public Utilities Commission, California Energy Commission, and California Air Resources Board. The Fund sets up a general framework to promote affordable electric rates and has the ability to give direct credit to ratepayers, accelerating affordable decarbonization.
• Affordability/ Expanding the CARE program - SUPPORT: AB 2672 (Petrie-Norris) expands eligibility of the low-income assistance program, California Alternate Rates for Energy (CARE) to public housing authority owned or administered by Project Homekey housing facilities that are master-metered. The investor-owned utilities (IOUs) must establish a process to ensure that the discount is directly benefiting the residents of these facilities. Cities such as Hayward, Union City, Oakland, and Stockton benefit from the State’s initiative to house people experiencing homelessness through Project Homekey. This bill further protects these vulnerable residents by ensuring that the IOUs directly apply the CARE discount (30% - 35%) to them, accelerating decarbonization by making it more affordable.
• Affordability/ Expanding the FERA program - SUPPORT: SB 1130 (Bradford) expands the low-income assistance program, Family Electric Rate Assistance (FERA) eligibility by allowing households of one or two people to also qualify, allowing more residents to benefit from the 18% discount on their electricity bill.
To combat low enrollment, this bill would require the IOUs, beginning in 2025, to share an annual report on their efforts to increase FERA enrollment. This bill will Staff Report Item 12
alleviate affordability concerns, especially for those customers who are living in higher cost-of-living areas and are making barely above the 200% federal poverty guidelines (i.e. CARE thresholds). This bill would accelerate decarbonization by making it more affordable.
• Building Decarbonization/ Mobile and manufactured homes electrification - SUPPORT: SB 1095 (Becker) reduces barriers for residents living in mobile and manufactured homes under a Homeowners Association (HOA) interested in transitioning to all-electric. The bill prevents HOAs from implementing provisions that prevent switching from gas to electric appliances including water heaters and furnaces. By July 2026, the Department of Housing and Community Development must issue regulations that facilitate the use of electric appliances in mobile and manufactured homes. This bill would accelerate decarbonization by making it more accessible.
• Building Decarbonization/ New housing development interconnection - SUPPORT: SB 1210 (Skinner) requires IOUs to publicly post on their website fees for service connections of different housing types, as well as estimated timeframes for completing service connections. The bill’s data on service connection fees and timelines can speed up connections and help build a strong case for urgent reinvestment in our infrastructure, accelerating decarbonization by making it more accessible and promoting local development. • Building Decarbonization/ Zonal electrification pilot projects- SUPPORT: SB 1221 (Min) facilitates responsible planning by identifying potential gas distribution line replacement projects and evaluating the cost-effectiveness to replace them with all-electric options. The bill would propose at most 30 pilot projects for priority neighborhood decarbonization zones. Cost-effective alternatives would save ratepayers money by avoiding more costly new investments in gas pipelines and promote cleaner options such as panel upgrades for heat pumps.
There is bill intent language to prioritize low-income communities. This bill would accelerate decarbonization by making it more accessible. • Transmission/ CAISO planning for new grid enhancing technology - SUPPORT:
AB 2779 (Petrie-Norris) directs the California Independent System Operator (CAISO) to report to the Legislature and the CPUC on the use of new grid enhancing technology (GETs) that are deemed reasonable for approved transmission plan. CAISO’s 20-year transmission outlook predicts a total estimated costs of $30.5 billion for transmission development to meet our state decarbonization goals. GETs can be a cheaper alternative to reducing Staff Report Item 12
transmission congestion thereby increasing capacity and accelerating decarbonization by making it more affordable.
• Transmission/ Planning for new grid enhancing technology - SUPPORT: SB 1006 (Padilla) requires IOUs to prepare a GETs strategic plan to increase transmission capacity, while reducing grid congestion. Every four years, the IOUs must also complete an evaluation to identify which transmission lines can be reconductored to increase grid reliability. SB 1006 could help IOUs better plan and deliver reliable energy at a lower cost than traditional grid enhancements, which accelerates decarbonization by making it more accessible and promotes local growth.
• Transmission/ Speeding up transmission projects - SUPPORT: SB 1165 (Padilla) would speed up transmission projects by allowing IOUs to submit an application with the CPUC to authorize new construction, while simultaneously submitting to the CEC an authorization request as an Environmental Leadership Development Project, a designation which could further streamline project review. SB 1165 can maintain important agency review while helping expedite the development of the transmission lines needed to reach California’s 100% energy goals, which accelerates decarbonization by making it more accessible and promotes local growth.
• Renewables/ Flexible capacity payment mechanism - SUPPORT: AB 1834 (Garcia) requires the CPUC and CEC to consider mitigating factors including resource scarcity and above-market costs when determining capacity payment penalties for missed Resource Adequacy standards. AB 1834 could help CCAs work alongside the agencies to ensure that if they face capacity payment penalties, that are not too burdensome or harmful, especially during tight, expensive markets. This bill would accelerate decarbonization by making it more affordable.
Fiscal Impact
AB 817 is unlikely to have a fiscal impact on Ava.
AB 2329 is unlikely to have a fiscal impact on Ava in the near-term, but may eventually result in lower costs for Ava customers who could qualify for future bill credits.
AB 2672 may result in lower costs for Ava customers benefitting in public housing facilities.
SB 1130 may result in lower costs for Ava customers who qualify for the expanded FERA requirements, but slightly increase costs for other customers paying for the program.
Staff Report Item 12
SB 1095 may supplement funding for our electrification and direct-install programs.
SB 1210 is unlikely to have a fiscal impact on Ava.
SB 1221 may supplement funding for our electrification and building decarbonization programs.
AB 2779 is unlikely to have a fiscal impact on Ava in the near-term, but may eventually lower costs as Ava project delays are avoided and transmission bills are lowered.
AB 1006 is unlikely to have a fiscal impact on Ava in the near-term, but may eventually lower costs as Ava project delays are avoided and transmission bills are lowered.
SB 1165 may lower costs for Ava as project delays are avoided due to interconnection.
AB 1834 may result in lower procurement costs for Ava due to greater flexibility of the capacity payment mechanism.
Attachments:
A. May 15, 2024 Legislative Update (Slideshow)
B. Ava’s Legislative Program
C. Author Fact Sheets
Ava 2024 Legislative
Update
Attachment Staff Report Item 12A
Agenda
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Attachment Staff Report Item 12A
Key Deadlines for the 2024 Legislative
Year
Attachment Staff Report Item 12A
Legislature –State of Play
▪
▪
▪
▪
▪
▪
▪
▪
Attachment Staff Report Item 12A
2024 Legislative Themes
•
•
•
•
•
Attachment Staff Report Item 12A
Ava’s Legislative Platform
•
•
•
•
•
•
Attachment Staff Report Item 12A
Attachment Staff Report Item 12A
Attachment Staff Report Item 12A
Attachment Staff Report Item 12A
+1 833.699.3223 [email protected]
AvaEnergy.org
Legislative
Program
State and Federal Policy Priorities
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 2
Contents
Introduction .....................................................................................................................3 Ava Board of Directors.....................................................................................................4 Contact Information.........................................................................................................5 Mailing Address........................................................................................................................................................ 5 Program Staff ........................................................................................................................................................... 5 Legislative Advocates.......................................................................................................6 State Legislative Advocate........................................................................................................................................ 6 Federal Legislative Advocate.................................................................................................................................... 6 General Legislative Principles..........................................................................................7 Accelerating Decarbonization .................................................................................................................................. 7 Promoting Local Development................................................................................................................................. 7 Stabilizing Community Choice.................................................................................................................................. 7 Ava Public Policy Positions...............................................................................................8
1.1 Nonbypassable Charges ..................................................................................................................................... 8
1.2 Disadvantaged Communities.............................................................................................................................. 8
1.3 Environmental Sustainability.............................................................................................................................. 8
1.4 Finance ............................................................................................................................................................... 8
1.5 Educational, Neighborhood, and Social Services................................................................................................ 9 Legislative Program Coordination..................................................................................10 Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 3
Introduction
The Ava Community Energy Legislative Program outlines the legislative priorities and stances of Ava Community Energy (“Ava”) with the intent to inform customers, representatives, and policymakers of Ava’s stances on the myriad of public policies that intersect with Ava’s priorities, programs, and services. These priorities are applicable to legislation, statewide referenda, grant funding opportunities, and local ballot initiatives.
Ava has three major legislative priorities: Accelerating Decarbonization, Promoting Local Development, and Stabilizing Community Choice. Ava support of legislation will be contingent upon that legislation adhering to these priorities as well as Ava’s priorities.
Moreover, Ava supports any and all policies that will preserve or enhance the ability of Ava to promote these priorities at the local level.
This document provides direction to Ava’s legislative advocates in Sacramento and Washington, DC. Additionally, this document serves as the foundation for any Ava Board action regarding Federal or State legislation or funding opportunity. Staff may draft letters, direct our legislative advocates, or speak on behalf of Ava regarding the legislative priorities this document outlines.
Any correspondence signifying Ava’s support or opposition of a given bill must be approved by the Ava 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 Alec Ward, Principal Legislative Manager, at 510.250.3094 or [email protected].
Sincerely,
Nick Chaset
Chief Executive Officer, Ava
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 4
Ava Board of Directors
Alameda County
Supervisor Elisa Márquez
Albany
Councilmember Aaron Tiedemann (Vice Chair)
Berkeley
Vice Mayor Ben Bartlett
Dublin
Vice Mayor Sherry Hu
Emeryville
Councilmember Sukhdeep Kaur
Fremont
Councilmember Teresa Cox
Hayward
Councilmember Julie Roche
Lathrop
Vice Mayor Minnie Diallo
Livermore
Councilmember Ben Barrientos
Newark
Councilmember Matthew Jorgens
Oakland
Councilmember Dan Kalb
Piedmont
Vice Mayor Betsy Anderson
Pleasanton
Councilmember Jack Balch (Chair)
San Leandro
Mayor Juan González III
Stockton
Councilmember Dan Wright
Tracy
Councilmember Mateo Bedolla
Union City
Councilmember Jaime Patiño
Community Advisory Committee (non-voting)
Ed Hernandez, Chair
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 5
Contact Information
Mailing Address
1999 Harrison Street, Suite 2300
Oakland, CA 94612
Program Staff
Chief Executive Officer
Nick Chaset
510.809.7440
[email protected]
Principal Legislative Manager
Alec Ward
510.250.3094
[email protected]
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 6
Legislative Advocates
State Legislative Advocate
Omni Government Relations
Dan Chia
1121 L Street, Suite 408
Sacramento, CA 95814
916.425.8481
[email protected]
Federal Legislative Advocate
Townsend Public Affairs
Joseph Melo
600 Pennsylvania Avenue SE, Suite 207
Washington, DC, 20003
202.546.8696
[email protected]
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 7
General Legislative Principles
Ava has three general legislative principles. These priorities serve as the foundation for all actions Ava 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 Ava revenues, programs, and/or administrative discretion and control. Ava 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, Ava will oppose, support with amendments, or in some cases take no stance on that policy or legislation.
The General Legislative Principles for Ava are:
Accelerating Decarbonization
• Support the creation or expansion of federal, state, and local policies and programs that enable Ava 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 Ava’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 Ava’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 Ava 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 12B
LEGISLATIVE PROGRAM—updated May 2024 8
Ava Public Policy Positions
The General Legislative Priorities help identify which public policy positions Ava will take.
The list of policy positions below is by no means exhaustive. In addition to the general legislative priorities, Ava takes the following more specific public policy positions:
1.1 Nonbypassable Charges
A. Oppose legislation that restricts or limits Ava’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 Ava’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 Ava’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 Ava’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.
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.
Attachment Staff Report Item 12B
LEGISLATIVE PROGRAM—updated May 2024 9
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 Ava 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 12B
LEGISLATIVE PROGRAM—updated May 2024 10
Legislative Program Coordination
Legislation can be brought to the attention of Ava through a variety of channels:
• State Legislative Advocates
• Elected Representatives
• CalCCA
• Ava Board Members
• Ava Staff
• Ava Community Advisory Committee
• Ava Customers and Community Members
• Other Governmental Associations
All legislative requests for support or opposition will be directed toward Ava’s Public Policy department. Ava staff will then review the legislation in coordination with any relevant departments to analyze whether or not the legislation aligns with Ava’s general legislative priorities. Staff will then monitor and track the legislation, providing updates when necessary.
Concurrent with this evaluation, Ava’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 Principal Legislative Manager of Public Policy or their designee:
1. Direction to lobbyists to advocate in support, support with changes, oppose unless amended, or opposition to legislation
a. Pursuant to direction from the Ava 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, Ava staff will notify lobbyists of Ava’s stance on legislation and direct them to take appropriate action with legislators. Ava may remain neutral on a given piece of legislation.
2. Ava correspondence with relevant legislators
a. In conjunction with providing direction to lobbyists once Ava has determined its stance on legislation, Ava staff will send a support or opposition letter to the appropriate legislators.
3. Ava Board-approved resolution
a. Ava staff will draft a staff report and resolution for consideration by the full Ava 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. Ava Board outreach
a. Ava staff will draft talking points and other relevant information for individual Board Members to personally contact appropriate legislators to advocate on behalf of Ava.
5. Travel to Sacramento or Washington, D.C
a. Ava 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
a. Ava staff and legislative advocates will work with Ava’s legislative representatives to articulate Ava’s stance on a policy and to ensure said stance is codified in statute.
Attachment Staff Report Item 12B
December 6, 2023
BACKGROUND
Local governments across the state have
faced an ongoing challenge to recruit
and retain members of the public on
advisory bodies, boards, and
commissions. Challenges associated
with recruitment have been attributed to
participation time commitments; time
and location of meetings; physical
limitation, conflicts with childcare, and
work obligations.
The COVID-19 global pandemic has
driven both hyper-awareness and
concerns about the spread of infectious
diseases, as well as removed barriers to
local civic participation by allowing
remote participation. This enabled
individuals who could not otherwise
accommodate the time, distance, or
mandatory physical participation
requirements to engage locally.
Diversification in civic participation at all
levels requires careful consideration of
different protected characteristics as
well as socio-economic status. The in-person requirement to participate in local governance bodies presents a
disproportionate challenge for those
with physical or economic limitations,
including seniors, persons with disability,
economically marginalized groups, and
those who live in rural areas and face
prohibitive driving distances.
Participation in local advisory bodies and
appointed boards and commissions
often serves as a pipeline to local
elected office and opportunities for state
and federal leadership positions.
Existing law (Stats. 1991, Ch. 669) declares
“a vast and largely untapped reservoir of
talent exists among the citizenry of the
State of California, and that rich and
varied segments of this great human
resource are, all too frequently, not aware
of the many opportunities which exist to
participate in and serve on local
regulatory and advisory boards,
commissions, and committees.” Under the
Local Appointments List, also known as
Maddy’s Act, this information must be
publicly noticed and published. However,
merely informing the public of the
opportunity to engage is not enough:
addressing barriers to entry to achieve
diverse representation in leadership
furthers the L e g i s l a t u r e ’ s declared
goals of equal access and equal
opportunity.
AB 817- OPEN MEETINGS: TELECONFERENCING: NON-DECISION-MAKING BODIES Attachment Staff Report Item 12C
December 6, 2023
EXISTING LAW
Senate Bill 544 (Stats. 2023, Chapter 216)
until January 1, 2026, among other
provisions, authorizes State advisory
boards, commissions, committees and
subcommittees or similar multimember
advisory bodies to hold a meeting by
teleconference without posting of
location to promote equity and public
participation by removing barriers
while balancing the protection of them
and their families while preserving the
public's right to access.
Assembly Bill 557 (Stats. 2023, Chapter
534) eliminated the sunset date on
provisions of law allowing local
agencies to use teleconferencing
without complying with specified Ralph.
M Brown Act (Brown Act) requirements
during a proclaimed state of
emergency, indefinitely authorizing the
full legislative body to participate
remotely without posting physical
location when the Governor has issued a
specified state of emergency.
Assembly Bill 2449 (Stats. 2022, Chapter
285) until January 1, 2026, permits a full
Brown Act legislative body to permit
remote participation for a minority of
local government officials for just cause
or emergency circumstances.
AB 931 (Stats. 2019, Chapter 819) sought
to ensure equal gender representation
on local boards and commissions. While
provisions were invalidated by the court,
the legislative declarations recognize
these local bodies establish a pathway to
other governmental leadership positions
and that California must take affirmative
steps to remedy the injustices resulting
from underrepresentation in leadership
positions.
PROBLEM
Currently, there is no law that governs
Brown Act Bodies specific to legislative
subcommittees, boards, and
commissions.
SOLUTION
AB 817 would provide a narrow
exemption under the Ralph M. Brown
Act for non-decision- making
legislative bodies currently governed
by Act, such as advisory bodies and
commissions, to participate in two-way virtual teleconferencing without posting physical location of members,
aligning equal access to civic
participation with State advisory
bodies.
AB 817 would remove barriers to entry
for appointed and elected office by
allowing non-decision- making
legislative bodies to participate
virtually as long as they do not have
the ability to take final action on
legislation, regulations, contracts,
licenses, permits, or other
entitlements.
SUPPORT
California Association of Recreation
and Park Districts (CARPD), League
of California Cities (CalCities), Urban
Counties of California (UCC), Rural
County Representatives of California
(RCRC), California State Association
of Counties (CSAC), California
Association of Public Authorities for
In-Home Supportive Services (CAPA-IHSS) – Sponsors
Staff Contact
Kierra Paul
Email: [email protected] Phone:
916.319.2064
Attachment Staff Report Item 12C
Last Updated: 4/21/2024
A S S E M B L Y M E M B E R A L MU R A T S U C H I
66 TH A S S E M B L Y D I S T R I C T
1 0 2 1 O S TREET , S UITE 5 3 10 S ACRAMENTO , CA 9 5 8 1 4 3 4 2 4 W. C ARSON S T R E E T , SUITE 4 5 0 T ORRANCE , CA 9 0 5 0 5 WWW . A 66. ASMDC . ORG
AB 2329 (Muratsuchi) – Climate Equity Trust Fund
SUMMARY______________________________
California’s retail electricity rates have skyrocketed
in recent years, driving average customer bills
upwards and threatening the affordability of basic
service. Higher electricity bills could undermine
California’s climate goals—households are less
likely to adopt clean technologies such as zero-emission vehicles, electric heat pumps for space heating and hot water, and induction stoves if they
can’t afford the electricity needed to support them.
AB 2329 addresses electricity affordability by
creating two entities: The Climate Equity Trust Fund
(the Fund) and the California Affordable
Decarbonization Authority. The latter, a non-profit
public benefit corporation, would administer the
former, a trust fund supplied with monies outside of
ratepayer sources, with the explicit purpose of
promoting electricity affordability and incentivizing
electrification.
BACKGROUND__________________________
Electricity rates in California have increased in
tandem with increased utility spending on wildfire
mitigation, transmission and distribution costs, and
support for public purpose programs. Utilities cover
these increased costs by raising electricity rates.
Mitigation for these increased costs comes primarily
via the California Climate Credit (funded through the
Cap-and-Trade program) and the California
Alternate Rates for Energy (CARE) programs
(funded by ratepayers). The former shows up as
semi-annual credit on all Investor Owned Utility
(IOU) residential customer bills while the latter
directly reduces low-income electricity bills by
charging a small premium to all ratepayer customer
classes.
ISSUE___________________________________
The Climate Credit and CARE programs have not
kept up with higher electricity bills. Additionally,
electrification incentive programs to promote zero-emission vehicle purchases, rooftop solar installation, and electric heat pumps are subject to
boom-and-bust budget cycles.
SOLUTION_______________________________
To ensure that California’s electrification goals don’t come at the expense of affordability, AB 2329 seeks
to identify and channel funding from a variety of
non-ratepayer sources to offset costs otherwise
collected in electricity rates but unrelated to
providing basic service. This approach is consistent
with the Joint Recommendations identified in the SB
100 report to the Governor.
Creating the Climate Equity Trust Fund will give the
state the flexibility to promote affordability and
electrification through one standalone entity. The
Fund would recommend approaches to addressing
the most pressing electricity needs of the state,
including equity initiatives, rebates on bills, wildfire mitigation, and Public Purpose Programs.
The Fund would be overseen by the California Public
Utilities Commission and the California Energy
Commission to ensure that Fund priorities are
honored. Additionally, the Legislature may establish
priorities for the Trust as part of authorizing access
to specific funding sources.
STAFF CONTACT_________________________
Aaron Forburger; [email protected]
Attachment Staff Report Item 12C
Last Updated: 4/21/2024
SUPPORT________________________________
Citizen’s Climate Lobby—California (co-sponsor)
The Utility Reform Network (TURN) (co-sponsor)
350 Sacramento
California Environmental Voters
California Municipal Utilities Association
California State Association of Electrical Workers
Clean Power Alliance of Southern California
Climate Action California
The Climate Center
Coalition of California Utility Employees
Natural Resources Defense Council (NRDC)
QuitCarbon
Santa Cruz Climate Action Network
The Climate Reality Project: Silicon Valley
Union of Concerned Scientists
Attachment Staff Report Item 12C
Assembly Bill 2672
Lower Energy Bills for Affordable Housing
SUMMARY
AB 2672 expands the state’s energy bill discount
program (California Alternative Rates for Energy,
“CARE”) to housing owned or run by public
housing authorities.
BACKGROUND
The primary existing policy to help low-income
customers of the state’s investor-owned utilities1
pay their energy bills is the CARE program.2
Households enrolled in CARE receive a 30-35%
discount on their electric bill3 and a 20% discount
on their natural gas bill.
CARE discounts apply to individual customers, and
are applied at the customer meter. This decades-old
practice of applying the CARE discount at the
customer meter helps to ensure qualifying
customers directly receive the benefits of their
discount.4 However, the practice limits CARE
program eligibility to individual residences.
Generally, the CARE discount cannot be applied to
housing that is master-metered (i.e. one meter for
the entire facility, rather than metered at each unit).
Statute provides a few exceptions to this master-meter CARE prohibition, where applicable; specifically for nonprofit group living facilities such as women’s shelters, hospices, and homeless
shelters.
5 NEED FOR THE BILL
In March 2020, Project Roomkey was established as
part of the state response to the COVID-19
pandemic. The purpose of Roomkey was to provide
1 The largest: Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric
2 Public Utilities Code § 739.1
3 For IOUs with more than 100,000 service connections; for those with fewer, the CARE discount is ~20%.
4 Rather than risking unscrupulous landlords claiming the credit for themselves, and billing tenants a higher rate.
5 Public Utilities Code § 739.1(h)
single-unit shelter options – such as hotels and
motels – for people experiencing homelessness. By
December 2020, Roomkey had provided rooms to
more than 22,000 people.6 Though Roomkey was
conceived as a short-term health and safety
measure, the program evolved into Project
Homekey to address the more than 180,0007
individuals experiencing homelessness in the state.
Homekey provides grant funding to local public
entities, such as housing authorities, to develop a
broad range of housing types8 into permanent or
interim housing units. Over $700 million was
appropriated in 2022-2023 to fund Homekey.
Many Homekey participants, as formerly homeless
individuals, would be eligible for CARE discounts on
their electric and gas bills. However, Homekey sites
are routinely master-metered properties, such as
converted hotels and motels.9 As such, utilities are
unable to provide bill discounts to this target
population.
SOLUTION
AB 2672 expands the CARE program eligibility to
include housing owned or administered by a public
housing authority, enabling participants in Project
Homekey a needed reduction on their energy bills.
CONTACT
Laura Shybut | Chief Consultant
Assembly Utilities and Energy Committee
[email protected] | (916) 319-2083
6 Shannon McConville, “What Lessons Can Be Learned from Project Roomkey?” PPIC blog, Dec. 4, 2020; here
7 Pg. 16, U.S. Dept. of Housing and Urban Dev., 2023 Annual Homelessness Assessment Report to Congress, December 2023; here. 8 including hotels, motels, hostels, and multifamily apartments 9 Motel and hotel acquisitions include projects in Fresno, L.A., and San Diego; here.
Attachment Staff Report Item 12C
SB 1130 – Expanding Enrollment in FERA
SB 1130 would expand the eligibility criteria for the
Family Electric Rate Assistance (FERA) Program
and require the state’s three largest investor-owned
utilities to report on their efforts to enroll customers in the FERA program.
In 1989, the Public Utilities Commission (CPUC)
established the California Alternate Rates for
Energy program (CARE) to assist low-income
customers with their electric and gas bills.
Individuals and families whose annual household
incomes are at or below 200% of the Federal
Poverty Level are eligible.
In 2004, the CPUC ordered the state’s three largest
electrical corporations to provide relief for
customers in larger households who are not eligible
for the CARE program. By the following year, the
FERA program had been established and designed
to capture households with a yearly income level
between 200% and 250% of the Federal Poverty
Level. Eligible participants are given an 18%
discount on their monthly electric bill.
Currently, a family of four is eligible for the FERA
program if they have an annual income between
$60,001 and $75,000.
Unlike its sister program, FERA is historically
under-enrolled. In 2023, Pacific Gas & Electric
Company estimated enrollment in its service
territory at 23%. In the same year, San Diego Gas &
Electric and Southern California Edison reported
their enrollment rates at 24% and 14% respectively.
In contrast, enrollment in the CARE program in
2023 was over 100% for both PG&E and SDG&E
and 91% for SCE.
SB 1130 would expand the eligibility criteria for the
Family Electric Rate Assistance (FERA) Program
by eliminating the requirement that a household
consist of three or more persons.
The bill would also require the state’s three largest
investor-owned utilities to report to the CPUC on
their efforts to enroll customers in the FERA
program. The CPUC would then annually review
the reports to ensure they have sufficiently enrolled
eligible households in the FERA program.
If investor-owned utilities’ (IOU) efforts to increase
enrollment are determined to be insufficient, they
will be required to develop a strategy and plan to
remedy the gap.
AARP
CALIFORNIA SOLAR & STORAGE
ASSOCIATION
MARIN CLEAN ENERGY (MCE)
THE UTILITY REFORM NETWORK (TURN)
WESTERN CENTER ON LAW & POVERTY
Austin Panush, Policy Analyst
Office of Senator Steven Bradford
1021 O Street, Room 7210
(916) 651-4035
[email protected]
SUMMARY
BACKGROUND
SOLUTION
SUPPORT
CONTACT
Attachment Staff Report Item 12C
SB 1095 – The Cozy Homes Cleanup Act
SUMMARY
SB 1095 updates code ambiguities to ensure
individuals can switch from gas to electric
appliances, allowing Californians to opt for cozier
and healthier zero-emission homes.
BACKGROUND
Residential buildings compose 8% of greenhouse
gas emissions (GHG) in California.1 To achieve
the AB 1279 (Muratsuchi, 2022) goal of 85%
GHG reductions through 2045, California is
incentivizing and enabling the uptake of electric
appliances in homes.
California’s Scoping Plan, budget, and regulations
are all aiming to transition both the new and
existing residential housing stock to be fully
electric. The Scoping Plan calls for all electric
appliances installed in new residential buildings by
2026. For existing buildings, the Scoping Plan
establishes goals for the sales of new appliances to
be 80% electric for residential buildings by 2030
and 100% by 2035, targeting the conversions of
appliances at their end of life. In tandem with the
scoping plan, Governor Newsom has established a
target of 6 million heat pumps deployed in
buildings by 2030.2 The 2023-24 budget cycle
committed $423 million toward the direct
installation of electric appliances, particularly
targeted at low-income homes.3
Beyond increasing and improving the comfort of
homes, building electrification will prevent asthma
symptoms for over 300,000 Californaians and
prevent more than 1,000 deaths through 2045.4
THE PROBLEM
Despite California’s ambitious targets and
incentives, local agencies and non-profit
organizations at the forefront of electric appliance
installations have raised concerns about outdated
4 CARB, 2022. Scoping Plan. Table 3-7.
3 SB 102 (Budget Act of 2023).
2 Gov. Newsom, 2022. Letter to CARB.
1 CARB, 2021. GHG Emissions by Main Economic Sector
health and safety codes that could prevent or
discourage individuals from making the switch
from gas to electric appliances.
Issues such as legal ambiguities or delays in
approval of installation from a homeowner
association can potentially add time or costs to the
process of allowing residents to make the switch.
This is particularly burdensome in cases of
changes of appliances at the ‘end of life,’ where a
family cannot and will not wait 3-6 months for
their HOA to approve replacement water heater
installation.
These outdated regulations could preemptively
increase building electrification barriers and costs,
particularly for edge case installations of heat
pumps on the exteriors of homes, or for
replacements in mobile and multi-family homes.
SOLUTION
SB 1095 cleans up outdated building and safety
codes language inhibiting or delaying building and
home electrification. Specifically, this bill:
● Prevent HOAs from implementing provisions
which prevent the switch from gas to electric
appliances
● Clarifies the authority of individuals to replace gas with electric appliances in mobile and
manufactured homes
● Provides the Department of Housing and
Community Development authority to update its
regulations should further legal uncertainty inhibit
appliance replacement
This legal language clean up will preemptively
remove potential barriers that could frustrate
Californians trying or required to make the switch
to electric appliances.
SUPPORT
Bay Area Air Quality Management District (Sponsor)
Act Now Bay Area
Acterra: Action for a Healthy Planet
Status: Senate Judiciary. Last Updated: 03/20/2024
Attachment Staff Report Item 12C
Building Decarbonization Coalition
California Air Pollution Control Officers Association
California Environmental Voters
Carbon Free Palo Alto
Carbon Free Silicon Valley
Center for Biological Diversity
Earthjustice
Institute for Market Transformation
Natural Resources Defense Council
Physicians for Social Responsibility - San Francisco
Bay Area Chapter
Rewiring America
RMI
Sierra Club California
Silicon Valley Leadership Group
Sustainability and Resilience Policy Director
U.S. Green Building Council
FOR MORE INFORMATION
Tom Steel, Legislative Director
[email protected]
(916) 651-4013
Status: Senate Judiciary. Last Updated: 03/20/2024
Attachment Staff Report Item 12C
SB 1221
The Affordable Energy Transition and Workforce Protection Act Senator Dave Min, 37th District
Office of Senator Dave Min | SB 1221 Fact Sheet | Updated as of 3/26/24 1
SUMMARY
SB 1221 requires the California Public
Utilities Commission (CPUC) to adopt a
planning process for evaluating zero-emission alternatives (ZEAs) to gas pipeline replacement projects. The bill encourages
investor-owned-utilities (IOUs) to pursue
cost-effective ZEA pilot projects with strong
equity and labor benefits, while better
informing the CPUC’s Long-Term Gas
Planning Rulemaking.
BACKGROUND
Buildings account for 25 percent of all
emissions that contribute to climate change,
poor indoor air quality and adverse health
problems. The 2022-23 State Budget created
the Equitable Building Decarbonization
Program, which allocated $922 million for
the decarbonization of low- and moderate-income households.
While this was a big step in the right
direction, the state recognizes there is more
to be done to decarbonize the existing
building supply. In February 2024, the
CPUC released a gas transition white paper
outlining how the CPUC, California Air
Resources Board (CARB), and the
California Energy Commission (CEC) will
collaborate in a long-term plan to transition
California away from natural gas and move
toward ZEA sources for heating, cooling,
and other energy needs.
Currently, most decisions involving new gas
infrastructure investments occur in the short-term period of CPUC rate cases. This process does not allow for meaningful
consideration of alternatives to new long-term capital investments in the gas system.
Instead, dollar amounts are approved for
spending categories, such as pipeline
replacements that can cost over $3 million
per mile. These replacement and repair
projects commit California’s ratepayers to
decades of expensive investments to
delivery systems that may be obsolete before
they are paid off.
Cost-effective ZEA projects, like
neighborhood decarbonization projects,
would save ratepayers money by avoiding
more costly new investments in gas
pipelines. Instead, project beneficiaries
would receive energy-efficient electric
appliances such as heat pumps and electric
panel upgrades if necessary. Other examples
of ZEA projects include thermal energy
networks.
Over the next twenty years, PG&E forecasts
the need to replace approximately 12.5
percent of its gas distribution pipelines.
PG&E found ZEAs were both technically
feasible and cost-effective in approximately
40 percent of these cases, offering
significant potential for reducing gas system
costs while furthering California’s climate,
air quality and public health objectives.
Attachment Staff Report Item 12C
SB 1221
The Affordable Energy Transition and Workforce Protection Act Senator Dave Min, 37th District
Office of Senator Dave Min | SB 1221 Fact Sheet | Updated as of 3/26/24 2 By piloting cost-effective ZEA projects,
California has the opportunity to better
inform the CPUC’s Long-Term Gas
Planning Rulemaking and ensure a
transparent process, while saving ratepayers
money, providing worker protections, and
reducing emissions from buildings.
THIS BILL
SB 1221 will facilitate responsible utility
planning and will create greater alignment
between energy investments and the state's
climate and air quality goals. The public
process set up by SB 1221 will include an
opportunity for community input, and ensure
that historically disadvantaged communities
are not left behind. This bill allows for the
piloting of cost-effective ZEA projects in
place of gas pipeline replacement projects to
inform long-term gas system planning at the
CPUC.
Through its evaluation process, the CPUC
will identify disadvantaged, low-income
communities and environmental justice
communities as Priority Neighborhood
Decarbonization Zones.
To help ensure the energy transition benefits
all Californians and workers, this bill also
provides worker protections, including high
road jobs, skilled and trained workforce
provisions, and a prohibition of the
involuntary layoff of gas corporation
employees as a result of these projects.
SUPPORT
Building Decarbonization Coalition (Co-Sponsor)
Earthjustice (Co-Sponsor)
Natural Resources Defense Council (NRDC)
(Co-Sponsor)
OPPOSITION
None on file
STAFF CONTACT
Brett Hailey
[email protected]
Office of Senator Dave Min
(916)651-4037
Attachment Staff Report Item 12C
Assembly Bill 2779
Grid Enhancing Technologies Report
SUMMARY
AB 2779 requires the California Independent
System Operator (CAISO), to report any new use
and cost savings of the deployment of grid
enhancing technologies (GETs) deemed reasonable
in the Transmission Planning Process (TPP).
BACKGROUND
The SB 100 report has found that California will
need to roughly triple its current electricity power
capacity if it is to meet its 2045 clean energy goals.
Transitioning to a carbon-free economy requires a
rapid and costly expansion of the transmission
system. For instance, in the 2022-2023 TPP, CAISO
found 45 new transmission projects – roughly
costing $7.3 billion – would be needed to support
resource needs over the next decade.
Unfortunately, California’s transmission
development process can be complicated and
delayed, taking over a decade from concept to
construction. Permitting and siting may require
approvals from a wide range of stakeholders that
include federal, state and local agencies, and
landowners.
NEED FOR THE BILL
Given the urgency for the state to meet its clean
energy goals, a shorter-term solution is needed to
maximize transmission capacity. Grid-enhancing
technologies (GETs) encompass a suite of
technologies that increase the capacity and
efficiency of the existing transmission system. In
other words, GETs will allow California to better
utilize its existing infrastructure. Some examples of
GETs technologies include dynamic line rating,
1 power flow control devices,2 and analytical tools.
1 Dynamic Line Rating (and Ambient Adjusted Ratings) adjust thermal line ratings based on actual weather conditions including, ambient air temperature, wind speed/direction, and in conjunction with real-time monitoring
Given that GETs can be deployed faster than
building new transmission infrastructure, they
provide short-term solutions to temporary
operational challenges, such as during outages or
when new lines are under construction. GETs may
also serve an important role of bridging a gap until a
permanent transmission expansion is completed. As
such, the need for these technologies will only
increase as the pace of the energy transition
accelerates.
SOLUTION
AB 2779 will provide transparency on the frequency
and best use of GETs under consideration in the
CAISO TPP, by having the CAISO report on their
usage.
CONTACT
Lina V. Malova | Consultant
Assembly Utilities and Energy Committee
[email protected] | (916) 319-2083
2 Power-Flow Controllers allow grid operators to push or shift power away from overloaded lines and onto underutilized lines/corridors within the existing transmission network.
Attachment Staff Report Item 12C
SB 1006 – Energy Transmission and Efficiency Goals
California has enacted some of the world’s most aggressive climate goals. In 2018, the State adopted SB 100, committing to power the state with 100% clean energy by 2045. California’s bold green energy goals put it at the forefront of the nation’s climate efforts, however, meeting those goals will require a far larger, more reliable and resilient electrical grid that uses the best available technology. Making existing lines more efficient is critical to meeting California’s clean energy goals, and modernizing the grid will enhance reliability and avoid costly blackouts.
Last year, the California Independent System Operator (CAISO) determined California needs to more than double the capacity of the grid by 2035 to meet our SB 100 goals. While CAISO had previously estimated the need for an additional 1,000 megawatts of new clean energy every year for the next decade, their updated analysis estimates California will require 7,000-8,000 megawatts of new capacity every year over that same period. Meeting this unprecedented demand will require California to use cost effective methods to increase grid capacity such as reconductoring which replaces existing transmission lines with wires with greater capacity or grid enhancing technologies (GETs) which can increase capacity, decrease congestion, and improve reliability. A study conducted by Berkeley states reconductoring can help meet over 80% of the new interzonal transmission needed to reach over 90% clean energy by 20351. Despite their use in other countries and states, many California utility executives, regulators, and stakeholders are unfamiliar with advanced transmission technologies and their benefits.
Absent substantial changes to the state’s energy grid, California will not meet its visionary climate goals and the state’s fragile energy grid will be overextended as we transition to clean energy to power our homes, cars and economy. While new transmission lines will absolutely be necessary, upgrading existing lines can increase capacity by 30% quicker and at a fraction of the cost of new lines. California must take advantage of new technologies to maximize our grid efficiency, such as dynamic line ratings, which measure the true capacity of transmission lines based on actual conditions instead of worst case assumptions, improve capacity and reliability up to 48 hours ahead. Other GETs such as advanced power flow control and advanced topology control direct power away from overloaded lines and onto underutilized corridors which can greatly enhance the existing grid at lower costs and more flexibility.
Aligning with the California Energy Commission’s Integrated Energy Policy Report (IEPR) recommendations to maximize usage and expansion of transmission capacity through emerging technologies, SB 1006 bill would require utilities to prepare a GETs strategic plan to increase transmission capacity and reduce congestion and risk of wildfire in a cost effective way. At least every 4 years, utilities must complete an evaluation of what transmission lines can be reconductored in a cost effective manner while also increasing reliability and reducing the risk of wildfire among other things. The utilities are required to include a timeline and report the progress in implementing the plan. SB 1006 would prepare California’s transmission grid for the future and deliver reliable energy at lower costs than traditional grid enhancements.
1 Chojkiewicz, E., Paliwal, U., Abhyankar, N., Baker, C., O’Connell, R., Callaway, D., & Phadke, A. (n.d.). Accelerating Transmission Expansion by Using Advanced Conductors in Existing Right-of-Way. Energy Institute at Haas. https://haas.berkeley.edu/wp-content/uploads/WP343.pdf Attachment Staff Report Item 12C
Staff Contact
Name: Emily Zhou
Title: Legislative Aide
Email: [email protected]
Capitol Office: (916) 651 – 4018
Support
Attachment Staff Report Item 12C
SB 1165 – Transmission Acceleration
California has enacted some of the world’s most aggressive climate goals. Governor Newsom has announced that internal combustion engines (ICE) will no longer be sold in California after 2035, and in 2018, the State adopted SB 100, committing to power the state with 100% clean energy by 2045. California’s bold green energy goals put it at the forefront of the nation’s climate efforts, however, meeting those goals will require a far larger and more resilient electrical grid. New high-voltage cables, modernized existing cable networks, and new infrastructure connecting a grid with a far larger capacity to carry clean electrons to power our homes and economy are all necessary to meet all those ambitious climate goals.
Despite the overwhelming need to expand our electrical grid, until last year, the California Public Utilities Commission (CPUC) had not approved a new transmission line in years. The current process requires multiple agencies, duplicative analyses, and permitting processes that take years to complete and create unnecessary cost overruns and substantial delays.
In an analysis produced by the California Independent System Operator (CAISO) last year, California needs over $30 billion in new transmission investments in the next two decades to meet our existing targets. While CAISO had previously estimated the need for an additional 1,000 megawatts of new clean energy every year for the next decade their updated analysis estimates California will require 7,000 megawatts of new capacity every year.
Meeting this unprecedented demand will require California to simultaneously accelerate planning, siting, permitting, and construction of a new, modern electrical grid, while carefully managing its costs.
Current transmission projects are delayed by almost 5 years and have run up tens of millions of dollars in extra costs. In the best of circumstances, the CPUC requires five to six years to process a major transmission projects from concept to completion. Yet, that process is almost always substantially delayed and can take twice as long to complete. Absent substantial changes to the state’s current planning and permitting processes, California will not meet its visionary climate goals and the state’s fragile energy grid be overextended as climate pressures increase. Moreover, it will miss out on federal grant programs currently available for transmission modernization projects. That federal funding is critical to helping defray costs and lower long-term energy bills for consumers.
SB 1165 would help expedite the permitting and siting process by doing two things. First, it would expand last year’s AB 205 program by authorizing the California Energy Commission (CEC) to certify transmission projects.
Second, it would authorize the CEC to recover administrative costs from evaluating and application and authorize the CPUC regulated energy providers such as investor owned utilities (IOU’s) to opt-in to have the CEC do the CEQA analysis on their project applications while the CPUC, its central regulator focuses on its costs and necessity analysis. Bifurcating the process for IOU’s will enable the CPUC to focus on its core functions and accelerate its permitting while the CEC has a proven track record of completing CEQA processes in less than a year. Expanding permitting authority to the CEC will enable energy developers to upgrade our grid faster and for less money, while not compromising environmental reviews or protections. This bill is a reintroduction of SB 619 (2023) which the Governor vetoed last year. Discussions with the administration on expediting siting and permitting of new transmission capacity are underway with the goal of addressing this issue in 2024.
Attachment Staff Report Item 12C
Staff Contact
Name: Emily Zhou
Title: Legislative Aide
Email: [email protected]
Capitol Office: (916) 651 – 4018
Support
California State Association of Electrical Workers
Coalition of California Utility Employees
Large Scale Solar Association
Natural Resources Defense Council
San Diego Community Power
Sonoma Clean Power
Attachment Staff Report Item 12C
Assemblymember Eduardo Garcia, 36
th Assembly District
BACKGROUND
AB 1373 (Garcia, 2023) allows the
Department of Water Resources to act as a
central procurement entity and to require the
California Public Utilities Commission and
the California Energy Commission to ensure
load serving entities are making sufficient
progress towards their integrated resource
portfolio goals and determine capacity
payments for those who are deficient in
reliability.
This bill created a mechanism to facilitate the
procurement of diverse clean energy such as
offshore wind and geothermal energy.
Furthermore, it helps support grid reliability
and ensure an adequate supply of resources.
ISSUE
California has made vast strides in leading
the clean energy transition, and to meet its
long-term decarbonization and electrification
goals. AB 1373 provided the State with a tool
to enhance renewable electricity
development that helps meet California’s
increasing electricity demands. Clarifications
to AB 1373 are needed to ensure it is
implemented fairly and without increasing
administrative burdens for publicly owned
utilities.
BILL SUMMARY
AB 1834 adds important clarifications to the
implementation of AB 1373. Specifically,
that a local publicly owned electric utility
(POU) will not be assessed a capacity
payment for the reliability needs of others
and provides the state agencies with tools to
account for mitigating factors when
calculating a utility’s fair share of reliability
costs.
These provisions provide certainty that
capacity payments will be enforced only
when needed and in an equitable manner that
accurately reflects the status of the energy
market. The bill also seeks to reduce
administrative burden for POU staff which
will help public agencies optimize
deployment of resources.
Furthermore, this bill includes POU
financing mechanisms when paying for
voluntary participation in central
procurements. This provision creates
flexibility that allows a POU to utilize the
financing mechanisms that best serve its
customers in a manner that also ensures that
the Department of Water Resources is
compensated for a POU’s share of a
procurement.
SUPPORT
California Municipal Utilities Association
Northern California Power Agency
Southern California Public Power Authority
For More Information:
Erika Valle | Legislative Aide
Office of Assemblymember Eduardo Garcia
[email protected] | (916) 319-2036
AB 1834 – Resource Adequacy: Electricity Supply Strategic Reliability Reserve Program Updated 4/26/24
Attachment Staff Report Item 12C