Bill Text: CA SB1054 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Natural gas: customer credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-24 - In Assembly. Read first time. Held at Desk. [SB1054 Detail]
Download: California-2023-SB1054-Amended.html
NOYES
Bill Title: Natural gas: customer credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-24 - In Assembly. Read first time. Held at Desk. [SB1054 Detail]
Download: California-2023-SB1054-Amended.html
|
Amended
IN
Senate
March 20, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1054
| Introduced by Senator Rubio |
February 08, 2024 |
An act to add Chapter 8.65 (commencing with Section 25760) to Division 15 of the Public Resources Code, and to add Section 748.7 to the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1054, as amended, Rubio.
Climate Pollution Reduction in Homes Initiative: grants. natural gas: customer credit.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to prescribe, by regulation, among other things, lighting, insulation, climate control system, and other building design and construction standards, energy and water conservation design standards, and appliance efficiency standards to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy and to manage energy loads to help maintain electrical grid reliability, as specified.
Upon appropriation by the Legislature, this
This bill would establish the Climate Pollution Reduction in Homes Initiative, which would require the commission,
Energy Commission, in consultation with the Department of Community Services and Development, to develop and supervise the Climate Pollution Reduction in Homes Initiative to require gas corporations to jointly award grants for local service providers, as defined, nonprofit organizations, and regional collections of local governments to provide financial assistance to low-income households for the purchase of zero-carbon-emitting appliances. The initiative bill would require the commission Energy Commission, as part
of developing and administering the initiative, to develop guidelines for implementation, guidelines, as specified, and authorize local service providers, nonprofit organizations, and regional collections of local governments to use those grant moneys for outreach and technical assistance, rebates, loans, installation, educational information, and other support services to assist low-income households.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and
regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism.
This bill would authorize the PUC to require gas corporations to annually use up to 15% of the revenues received as a result of that allocation of allowances to fund the Climate Pollution Reduction in Homes Initiative, and would require the PUC to direct the balance of those revenues, including any accrued interest, received by a gas corporation to be credited directly to the residential customers of the gas corporation. The bill would require the PUC to annually direct gas corporations to distribute the credit, as specified.
Under
existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because certain of the above-described provisions would be part of the act and a violation of a PUC action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) The state is a global leader in greenhouse gas emissions reduction targets, including establishing state policies to return to 1990 greenhouse gas emissions levels by 2020, to reduce greenhouse gas emissions levels to 40 percent below 1990 levels by 2030, and to achieve carbon neutrality by 2045.
(b) Energy use in buildings is responsible for 25 percent of all emissions of greenhouse gases in the state and contributes to indoor and outdoor air pollution.
(c) Low-income communities across the state have disproportionately shouldered high energy costs and the burdens of poor air quality.
(d) Reducing home energy use through energy efficiency measures and retrofitting appliances simultaneously reduces residential energy expenses and harmful emissions, thereby improving economic security and indoor air quality, particularly in low-income communities.
SEC. 2.
Chapter 8.65 (commencing with Section 25760) is added to Division 15 of the Public Resources Code, to read:CHAPTER 8.65. Climate Pollution Reduction in Homes Initiative
25760.
(a) For purposes of this chapter, the following definitions apply:(1) “Department” means the Department of Community Services and Development.
(2) “Initiative” means the Climate Pollution Reduction in Homes Initiative.
(3) “Local service provider” has the same meaning as defined in Section 16367.5 of the Government Code.
(4) “Low-income household” means a person or family with a household income at or below 60 percent of the area median income, including such a person or family
in a multiunit dwelling.
(b) (1) The commission, in consultation with the department, shall develop and supervise the Climate Pollution Reduction in Homes Initiative is hereby established. The initiative shall be administered by the commission, in consultation with the department, to require gas corporations to
jointly award grants for local service providers, nonprofit organizations, and regional collections of local governments to provide financial assistance to low-income households for the purchase of zero-carbon-emitting appliances.
(2) For purposes of supervising the initiative, the commission shall act as third-party administrator.
(3) Moneys allocated pursuant to Section 748.7 of the Public Utilities Code shall be available to the commission, as the third-party administrator, for allocation consistent with this section.
(c) For purposes of implementing As
part of developing and administering the initiative, the commission shall develop guidelines that do all of the following:
(1) Provide for the expenditure of grant funds to ensure expeditious delivery of financial assistance to low-income households.
(2) Specify criteria for which appliances, which may include water heaters, stoves and cooking appliances, home heating and
cooling systems, refrigerators and freezers, and washers and dryers, are eligible for financial assistance.
(3) Ensure the initiative provides safe and reliable appliances that stabilize the utility bills of low-income households.
(4) Provide funding for single-family and multifamily residential buildings.
(5) Provide preference to projects that are receiving or combining funding from other sources, including, but not limited to, the Energy Efficiency Low-Income Weatherization Program established pursuant to Section 12087.5 of the Government Code.
(6) Provide tenant protections for rental properties, where appropriate.
(7) Maximize community-based outreach and education for the initiative through collaboration with local service providers, nonprofit organizations, or regional collections of local governments that have demonstrated ties to the local community at the neighborhood, city, or county level and have experience delivering energy incentives.
(8) Ensure that moneys from each gas corporation for the initiative are used for grants located in the service territory of the gas corporation from which the moneys are received.
(d) (1) A local service provider, nonprofit organization, or regional collection of local governments may use grant
moneys for outreach and technical assistance, rebates, loans, installation, educational information, and other support services to assist low-income households.
(2) A local service provider, nonprofit organization, or regional collection of local governments may authorize up to 20 percent of the financial assistance provided to a low-income household to be used on electrical upgrades to the low-income household’s property to support the installation of a zero-carbon-emitting appliance.
(e)This section shall be implemented upon an appropriation for its purposes by the Legislature.
SEC. 3.
Section 748.7 is added to the Public Utilities Code, to read:748.7.
(a) Except as provided in subdivision (c), the commission shall require revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas allowances to gas utilities pursuant to subdivision (a) and paragraphs (2) and (3) of subdivision (d) of Section 95893 of Title 17 of the California Code of Regulations to be credited directly to the residential customers of the gas corporation.(b) Each year, the commission shall direct each gas corporation to distribute the credit described in subdivision (a) during the February utility billing cycle, so as to coincide with the highest usage gas utility bill during the year.
(c) The commission may consider a gas corporation’s billing system’s ability to distribute the credit described in subdivision (a) in February and may authorize the gas corporation to provide the credit as close to the February utility billing cycle as feasible.
(d) The commission may require gas corporations to annually use up to 15 percent of the revenues, including any accrued interest, received as a result of the direct allocation of greenhouse gas emissions allowances provided to gas corporations as part of a market-based compliance mechanism adopted pursuant to subdivision (c) of Section 38562 of the Health and Safety Code to fund the Climate Pollution Reduction in Homes Initiative established pursuant to Chapter 8.65 (commencing with Section 25760) of Division 15 of the Public Resources Code.
