2010 California Energy Legislation
Bills Signed Into Law
RENEWABLES/DISTRIBUTED GENERATION
AB 44 Blakesleee Expand the use of voluntary contractual assessments to include financing electricity purchase agreements by expanding the definition of "permanently fixed to real property" to include systems attached to a residential, commercial, industrial, agricultural, or other real property pursuant to an electricity purchase agreement between the owner of the system and the owner of the assessed property. Signed into law 9-30-10
AB 2514 Skinner Energy storage systems. Requires the Public Utilities Commission to determine appropriate targets, if any, for load serving entities to procure energy storage systems. It requires load serving entities to meet any targets adopted by the Commission by 2015 and 2020. It requires publicly owned utilities to set their own targets for the procurement of energy storage and then meet those targets by 2016 and 2021. Signed into law 9-29-10
AB 2724 Blumenfield Governmental renewable energy self-generation. Authorizes state agencies to receive subsidies under the California Solar Initiative for solar systems up to 5 MW. The bill limits the payment of subsidies to state agencies for these larger systems to an aggregate amount of 26 MW. Signed into law 9-29-10
SBX8 34 Padilla Energy: Solar Thermal and photovoltaic powerplants: siting: California Endangered Species Act: mitigation measures. Requires the CEC to establish an expedited process so that final decisions on permits for ARRA-eligible Solar Thermalpowerplants can be issued prior to December 31, 2010, including allowing in lieu fees that would then be used by the Department of Fish and Game (DFG) to acquire and restore habitat lands for species impacted by the projects. Signed into law 3-22-10.
SB 77 Pavley Energy: CAEATFA: PACE. Creates a state PACE Reserve program to assist local jurisdictions in financing the installation of distributed generation of renewable energy sources or energy or water efficiency improvements. Signed into Law 4-21-10
CLIMATE CHANGE/GREENHOUSE GASES
AJR 26 Chesbro Climate change. This resolution would request the Congress of the United States to establish a comprehensive framework, including dedicated funding, for adapting our nation's wildlife, habitats, coasts, watersheds, rivers, and other natural resources and ecosystems to the impacts of climate change. Signed into law 8-30-10
AB 231 Huber AB 32: Environment: California Environmental Quality Act: overriding consideration. Authorizes a lead agency for a project to rely on a finding of overriding consideration involving a prior Environmental Impact Report (EIR) prepared for a prior project if the lead agency determines that the significant environmental effects for a later project that uses a tiered EIR are no greater than those identified in the prior EIR. Signed into law 9-28-10
AB 1504 Skinner Forest resources: carbon sequestration. Requires the California Department of Forestry and Fire Protection (CDF, or CALFIRE), in consultation with the Air Resources Board ( ARB), by March 1, 2011, to assess the capacity of its forest and rangeland regulations to meet or exceed the state's greenhouse gas ( GHG) reduction goals, pursuant to the California Global Warming Solutions Act of 2006 ( AB 32). Signed into law 9-28-10
AB 1846 V. Manuel Perez Environment: expedited environmental review: climate change regulations. Amends the California Environmental Quality Act ( CEQA) to expand the authorized use of a "focused" environmental impact report (EIR) for installation of mandated pollution control equipment also to include a pollution control project that reduce greenhouse gas ( GHG) emissions to comply with the California Global Warming Solutions Act ( AB 32). Additionally authorizes the use of a focused EIR for projects consisting solely of GHG pollution control equipment or component installation pursuant to AB 32. Signed into law 8-27-10
AB 2037 V. Manuel Perez Electricity: air pollution. Prohibits a load-serving entity or local publicly-owned electric utility from entering into, and the California Public Utilities Commission ( PUC) from approving, a long-term financial commitment for a new electrical generating facility constructed in California or in a shared pollution area if that facility does not meet Best Available Control Technology (BACT) standards and air pollution emission requirements. Signed 9-28-10
SJR 17 Leno and Pavley Climate change: ocean acidification: Arctic. Resolves that the California Legislature remain committed to reducing GHG to 1990 levels by 2020, and urges federal entities including the U.S. Environmental Protection Agency, the President, and Congress to become leaders in addressing global climate change, ocean acidification, and the reduction of global carbon dioxide concentration. Signed into law 4-26-2010
SB 1006 Pavley Natural resources: climate change. Adds climate adaptation strategies to the types of information to be provided by the Strategic Growth Council* and makes other related changes. It adds climate change adaptation to the types of information the council is to provide to local governments and regional agencies. It adds special districts and qualifying joint powers associations (JPAs) to the list of entities to which the council provides financial assistance. It defines "financial assistance" that current law directs the council to provide to specified entities to mean a revolving loan, a grant if the awardee cannot carry out the project without the grant, and certain planning incentives. *The council is made up of the secretaries or directors of several state agencies and one public member. Signed into law 9-29-10
SB 1224 Wright Air discharges. Authorizes, until January 1, 2014, a local air pollution control district or air quality management district to adopt a rule or regulation, consistent with protecting the public's comfort, health, and safety, that ensures district staff and resources are not used to investigate repeated and unsubstantiated complaints, alleging a nuisance odor violation concerning the discharge of current prohibited air contaminants. Signed into law 9-28-10
GREEN JOBS
AB 2696 Bass California Workforce Investment Board: Green Collar Jobs Council. Authorizes the California Workforce Investment Board (CWIB) to accept any revenues, moneys, grants,goods, or services from federal and state entities, philanthropic organizations, and other sources, to be used for purposes relating to the administration and implementation of the strategic initiative. The bill would authorize the Employment Development Department, upon appropriation by the Legislature, to expend those moneys and revenues for purposes of the strategic initiative and the award of grants. The bill would require the Green Collar Jobs Council (GCJC) to consult with appropriate state and local agencies to identify opportunities to coordinate the award of grant and green workforce training funds received by the state under the federal American Recovery and Reinvestment Act or any other funding sources. The bill would require the CWIB, on or before April 1, 2011, and annually each April 1 thereafter, to report to the Legislature on the status of GCJC activities, grants awarded, and the development and implementation of a green workforce strategic initiative. Signed into law 9-30-10
ENERGY/WATER EFFICIENCY
AB 1809 Smyth Home inspections: energy audits. Provides that a home inspector may perform a home inspection that includes a Home Energy Rating System ( HERS) California home energy audit, as defined in current regulations of the California Energy Commission which implement the California HERS Program. This bill requires the HERS report which accompanies any home inspection report to comply with the standards and requirements established by the CEC pursuant to regulations adopted to implement the HERS Program. Signed into law 9-29-10
SB 1198 Huff Energy. Delays implementation of the California Energy Commission's ( CEC) television energy use labeling requirement until July 1, 2011,to allow the Federal Trade Commission (FTC) time to develop and adopt its own national energy efficiency labeling rule for televisions. After that time, if FTC acts, FTC rules suspend CEC rules. If FTC does not act, CEC rules prevail. Signed 9-29-10
RATES/UTILITIES/REGULATORS
AB 510 Skinner Net energy metering. Increases a cap on the amount of solar or wind generated electricity that can be generated under the net-energy metering program from 2.5% to 5% of each utility's aggregate peak demand. It requires a licensed contractor to inspect existing solar or wind generating facilities when a customer generator wants to enter the facility into a new net-energy metered tariff. Signed into law 2-26-10
AB 1947 Fong Solar energy. Permits a POU to implement a solar program that allows customers to offset part or all of their electricity demand, with a solar energy system not located on the premises of the consumer. Signed into law 9-29-10
AB 1954 Skinner Electrical transmission: renewable energy resources. Authorizes the Public Utilities Commission to approve in advance the recovery through electricity rates of the costs of a transmission proposed to meet the state's Renewable Portfolio Standard goals. The bill sets the "de minimus" amount of non-renewable energy that may be used by a renewable energy facility at two percent, and authorizes the Energy Commission to adjust that level up to five percent on a case by case basis. This bill becomes operative if SB722 (Simitian) is enacted. Signed into law 9-29-10. Note: SB 722 was not passed.
SB 1247 Dutton Public utilities.Provides that hydroelectric facilities qualify toward meeting renewable portfolio standard ( RPS) compliance regardless of whether the facilities cause a change in the volume or timing of streamflow pursuant to a Federal Energy Regulatory Commission (FERC) license condition for licenses issued after January 1, 2010. It provides that efficiency improvements, and the resulting increased generating capacity at the Rock Creek hydroelectric facility, qualify toward meeting RPS compliance pursuant to a settlement agreement with the FERC. Signed into law 9-29-10
SB 1476 Padilla Electricity. Smart meters. Requires an electrical or gas investor-owned utility or a publicly owned electrical utility using advanced metering ("smart meters") to protect customers' energy usage data from unauthorized access or disclosure. Signed into law 9-29-10
TRANSPORTATION/GREEN BUILDING
AB 584 Huber Neighborhood electric vehicles. Allows the County of Amador and the cities of Jackson,Sutter Creek and Amador to establish a neighborhood electric vehicle (NEV) transportation plan. Signed into law 9-29-10.
AB 1781 Villines Neighborhood electric vehicles. Authorizes the City of Fresno to establish a neighborhood electrical vehicle plan. It requires a report to the Legislature by November 1, 2014, if the city adopts a plan. Signed into law 9-29-10.
SB 71 Padilla Economic development: sales and use tax exclusions: environmental technology project. Authorizes the CAEATFA to approve a sales and use tax exemption on tangible personal property utilized for the design, manufacture, production, or assembly of advanced transportation technologies or alternative energy source products, components or system. The sales and use tax exemption sunsets on January 1, 2021. It creates a sales tax exemption for the purchase of green tech manufacturing equipment in California. This tax exemption is a part of the Governor’s California Jobs Initiative, a legislative package that will create or retain at least 100,000 jobs. Signed into law 3-24-10
Bills Vetoed by Governor
RENEWABLES/DISTRIBUTED GENERATION
AB 1923 Evans Energy: photovoltaic panels. Authorizes moneys allocated by the CPUC for research, development, and demonstration pursuant to the CSI to be used for research, development, and demonstration for antitheft technology to protect investments in solar energy systems. Vetoed
GREEN JOBS
SB 675 Steinberg Green Jobs. Establishes the Clean Technology and Renewable Energy Job Training, Career Technical Education (CTE), and Dropout Prevention Fund Act, which awards grants for construction and enhancement projects associated with educating and training individuals for jobs in clean technology industries. This measure further establishes the funding source for this Act as the proceeds from the sale of bonds (in an unspecified amount). Vetoed.
ENERGY/WATER EFFICIENCY
SB 730 Wiggins Sonoma County Energy Efficiency Pilot Project Act of 2010.Requires local participation in the development of electrical utility energy efficiency programs. Vetoed.
RATES/UTILITIES/REGULATORS
SB 1414 Kehoe Public Utilities Commission: procedures: rehearings. Effective July 1, 2011, establishes deadlines for the Public Utilities Commission to act on any application for a rehearing regarding a commission action. Vetoed.
TRANSPORTATION/GREEN BUILDING
SB 1437 Kehoe Electricity: ISO. This bill would require the independent governing board of directors to annually select a representative of the ISO to appear before the appropriate policy committees of the Senate and Assemblyto report on the activities of the ISO.
No Action
RENEWABLES/DISTRIBUTED GENERATION
AB 2296 Saldana Energy: solar energy systems. Expands the eligibility criteria for solar energy systems receiving ratepayer funded incentives to include a solar energy system that is located on a near-site location to the end-use consumer.
AB 2378 Tran Energy: Renewable energy program. Adds "Dual renewable energy device" to the Public Resources Code and allows RPS credit for them. Dual renewable energy devices utilize two renewable energy generating technologies in the same device where neither renewable generating technology produces less than 20 percent of the total energy production by the device. Examples are wind turbines atop wave generators; photovoltaic panels and/or wind turbines affixed to wave machines; wind turbines affixed to exhaust vents from biomass generators; or, any other combination of renewable energy devices that increases net energy generation. Passed from committee June 16. This bill includes any combination of the renewable resources to qualify as an eligible renewable energy device under the California Energy Commission Renewables Program and for the Renewable Portfolio Standard compliance.
AB 2519 Arambula Energy: net energy metering. Requires, for the purposes of determining whether an agricultural customer-generator using wind or solar electric generation is a net consumer or a net surplus customer-generator during a 12-month period, the electric utility to aggregate the electrical load of the agricultural customer under the same ownership located on property adjacent or contiguous to the generation facility.
SB 722 Simitian, Kehoe, Steinberg Modifies the state's Renewables Portfolio Standard ( RPS) to increase, from 20% by 2010 to 33% by 2020, the proportion of electricity that electric utilities must receive from renewable resources.
SB 805 Wright Energy: renewable energy resources: procurement. Revises the California RPS Program as follows: Require investor owned utilities (IOUs) to increase total procurement of electricity generated by eligible renewable energy resources by at least an additional one percent of retail sales annually so that 33 percent of its retail sales are procured from eligible renewable energy resources no later than December 31, 2020; requires that, beginning January 1, 2012, the cost limitation established by the CPUCbe three percent of the previous year's annual revenue requirement for all direct and indirect RPS costs; requires the CPUC to adopt flexible rules for compliance with the existing and proposed RPS procurement thresholds; requires that if, despite good faith efforts to procure renewable energy resources, the procurement options are insufficient to meet thresholds due to insufficient supply or uncompetitive prices, an IOU will not be deemed out of compliance by the CPUC; requires that the RPS program allow electricity from renewable energy resources and unbundled RECs from out-of-state renewable energy resources, as defined, provided that in-state renewable energy resources be preferred; authorizes IOUs to meet no more than 25 percent of its RPS requirements with unbundled RECs from renewable energy resources located out-of-state but within the Western Electricity Coordinating Council; requires publicly owned utilities (POUs) to meet similar RPS requirements and require POUs to annually report to the CEC on progress toward meeting the RPS requirements; requires that certified RECs must meet specified conditions set forth in this bill.
CLIMATE CHANGE/GREENHOUSE GASES
AB 2313 Buchanan Greenhouse gas: emissions: significant effects. Requires the Office of Planning and Research to prepare, and the Secretary of the Natural Resources Agency (NRA) to adopt, revisions to the California Environmental Quality Act Guidelines to establish standards for determining significant effects on the environment resulting from greenhouse gas emissions.
SB 1033 Wright AB 32: allowances. Requires CARB, if market-based compliance mechanisms are adopted that include the distribution of allowances, which are defined under existing law as authorizations to emit GHGs, to sell or otherwise distribute an allowance only to a regulated entity, subject to the GHG limit to which that allowance applies. It authorizes a regulated entity to sell or trade an allowance only to another regulated entity.
SB 1435 Padilla Requires the Public Utilities Commission to adopt rules applicable to charging facilities for electric vehicles (EVs) or plug-in hybrid vehicles ( PHEVs) located within the territories of the electrical investor-owned utilities.
ENERGY/WATER EFFICIENCY
AB 2014 Torrico Income taxes: credits: energy efficient homes. Allows an income tax credit of the lesser of 50% of the qualified costs incurred in the taxable year or $1,500 for taxable years beginning or after January 1, 2010, for the qualified costs incurred by an individual taxpayer in improving the energy efficiency of his/her qualified principal residence.
AB 2061 Carter Electric distribution: efficiency. Requires the development of electric transmission and distribution efficiency measures by California utilities with more than 100,000 customers.
AB 2614 Perez Energy: home retrofit: federal program. Directs the CEC, upon enactment of the federal Home Star Energy Retrofit Act of 2010, to develop programs required to complement the Act by establishing a quality assurance program, thus ensuring a qualified pool of home energy inspectors are available to perform energy audits, and that the requisite audits are performed and various financing options are developed.
RATES/UTILITIES/REGULATORS
AB 51 Blakeslee Energy: net energy metering. Requires the CPUC to limit the administrative costs of programs approved by theCPUC after 1/1/2012 to no more than 10% of the funds expended.
AB 413 Fuentes Energy: rates. Prohibits the CPUC, prior to January 1, 2014, from adopting time-variant residential rates. Allows time-variant rates if voluntary and including demand response programs. Requires establishment of the CARE program at 200% of the federal poverty level. Requires the CPUC to develop specified energy efficiency and solar programs. Lifts the existing residential rate freeze and limits annual increases.
AB 1348 Blakeslee Renewable Energy Resources: Electrical corporation procurement of electricity. Requires than an electrical corporation's proposed procurement plan include a showing that the electrical corporation will procure resources from eligible renewable energy resources in an amount sufficient to meet its RPS. Requires procuring in a manner that complies with ARBrequirements per AB 32 and filing a fossil fuel procurement plan that meets GHG reduction requirements adopted by ARB.
AB 1552 Utilities &Commerce Committee Electricity. Extends until January 1, 2012, the authorization for a nonprofit charitable organization, to acquire electric commodity service through a direct transaction with an electric service provider if electric commodity service is donated free of charge without compensation.
AB 2441 Berryhill Natural Gas Surcharge Requires the CPUC to open a ratemaking to reexamine the allocation among ratepayer classes of the surcharge Public Goods Charge on natural gas customers, and in doing so consider job creation, job retention and job training. If the CPUC revises the allocation for a gas utility that is not both an electrical and gas utility, two years after such a revision, the CPUC must report to the Legislature on whether the change affected job creation, job retention, and job training.
AB 2561 Villines and Fuentes Energy: commission and department. Abolishes the CEC and the Electricity Oversight Board. Creates the Department of Energy, headed by a Secretary of Energy, and would create the California Energy Board and the Office of Energy Market Oversight within the department.
SB 837 Florez Utility Service: Smart Meters. Requires the California Public Utilities Commission to ensure the investor owned utilities' smart meter technologies are properly tested prior to installation and deployment and specifies testing and technology standards.
SB 1097 Strickland Gas and electric utility service: master-meter customers. Requires electric and natural gas utilities to accept the transfer of electricity or natural gas systems serving master-metered mobile home parks, provided that certain criteria are met. Requires utilities to designate a representative to work with mobile home park owners on potential transfers. Requires the CPUC to monitor and facilitate proposed transfers. Allows mobile home park owners to bring complaints before the CPUC related to the transfer process.
TRANSPORTATION/GREEN BUILDING
AB 2132 Carter Renewable Energy Resources. Authorizes grants to pay for energy efficiency improvements in buildings built before January 1, 1978.
AB 2311 Mendoza AB 32: low-carbon fuel standard review. Requires the executive officer of the CARB to conduct three reviews of the Low Carbon Fuel Standard regulation.
AB 2679 Eng Public buildings: energy and water: consumption reductions. It requires specified reductions in energy and water use over time in state buildings whose operating costs are funded from the General Fund. Specifically, it requires that baseline measurements of energy and water use constituting consumption levels between January 1, 2006 and December 31, 2008-be established by January 1, 2013. It also requires such buildings to meet the following compliance schedule for reductions in energy and water use from baseline measurements: a) By January 1, 2015, energy by 15% and water by 10%; b) By January 1, 2020, energy by 30% and water by 20%; c) By January 1, 2025 and thereafter, energy by 60% and water by 30%.
