Bill Text: CA AB2329 | 2023-2024 | Regular Session | Amended

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Bill Title: Energy: California Affordable Decarbonization Authority.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-08 - In committee: Set, first hearing. Referred to suspense file. [AB2329 Detail]

Download: California-2023-AB2329-Amended.html

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Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2329

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Introduced by Assembly Member Muratsuchi

February 12, 2024

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An act to amend Section 382 of add Division 8 (commencing with Section 19000) to the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL'S DIGEST

AB 2329, as amended, Muratsuchi. Low-income energy assistance programs. Energy: California Affordable Decarbonization Authority.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to establish the Equitable Building Decarbonization Program to, among other things, include a statewide incentive program for low-carbon building technologies.

This bill would require the PUC and Energy Commission to jointly authorize the establishment of the California Affordable Decarbonization Authority as a nonprofit public benefit corporation and to take all necessary measures to create the authority. The bill would require the authority to be governed by an independent board of directors appointed by the Governor, Speaker of the Assembly, and Senate Committee on Rules, as specified. The bill would require the authority to maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act and the California Public Records Act. The bill would establish the Climate Equity Trust Fund as a trust fund, separate and apart from all public moneys or funds of the state, and would, upon appropriation by the Legislature, require that the moneys in the trust fund be expended by the authority for the benefit of electricity customers and to promote affordable electricity rates, as specified. The bill would authorize disbursements from the trust fund to be made through direct credits on ratepayer bills, direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers, and reimbursement of eligible costs, including costs for building electrification programs and incentives, incurred by an electrical corporation, electric service provider, community choice aggregator, or local publicly owned electric utility in the form of matching funds. The bill would require the authority to submit annual and multiyear spending plans for review and approval to the PUC and the Energy Commission before disbursing trust fund moneys.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Under existing law, the commission supervises certain rate assistance and energy efficiency programs administered by electrical corporations and gas corporations, or administered by third-party administrators on their behalf. Existing law requires the commission, with the assistance of the Low-Income Oversight Board, not less often than every 3rd year, to conduct an assessment of the needs of low-income electricity and gas ratepayers. Existing law requires the assessment to evaluate low-income program implementation and the effectiveness of weatherization services and energy efficiency measures in low-income households and to consider whether existing programs adequately address low-income electricity and gas customers’ energy expenditures, hardship, language needs, and economic burdens.

This bill would make nonsubstantive changes to the requirement that the commission conduct assessments of the needs of low-income electricity and gas ratepayers and related provisions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read:

DIVISION 8. Decarbonization

PART 1. General Provisions

19000.

 In enacting this division, it is the intent of the Legislature to do all of the following:

(a) Establish the Climate Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.

(b) Establish the California Affordable Decarbonization Authority to administer the Climate Equity Trust Fund.

(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.

(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.

(e) Authorize the disbursement of funds from the Climate Equity Trust Fund to support all of the following:

(1) Stable and affordable electricity rates.

(2) Decarbonization and clean energy initiatives.

(3) Transportation and building electrification initiatives.

(4) Distributed energy resource programs.

(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.

(6) Equity initiatives to assist electricity customers in disadvantaged communities.

(7) Wildfire mitigation activities.

(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).

19001.

 For purposes of this division, the following definitions apply:

(a) “Authority” means the California Affordable Decarbonization Authority established pursuant to Section 19010.

(b) “Eligible renewable energy resources” has the same meaning as defined in Section 399.12.

(c) “Load-serving entity” has the same meaning as defined in Section 380.

(d) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3.

(e) “Retail seller” has the same meaning as defined in Section 399.12.

(f) “Trust” means the Climate Equity Trust Fund established pursuant to Section 19020.

PART 2. The California Affordable Decarbonization Authority

19010.

 (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.

(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).

(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:

(1) Three members shall be appointed by the Governor subject to Senate confirmation.

(2) Two members shall be appointed by the Speaker of the Assembly.

(3) Two members shall be appointed by the Senate Committee on Rules.

(d) (1) Each member shall be appointed to a three-year term.

(2) The initial appointment of the board shall be as follows:

(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.

(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.

(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.

(e) The appointing authority may reappoint a member upon the expiration of that member’s term.

19011.

 (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).

(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.

19012.

 The authority shall operate consistent with applicable state laws and in the interests of the people of the state.

PART 3. The Climate Equity Trust Fund

19020.

 (a) The Climate Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.

(b) The trust shall consist of all of the following moneys:

(1) Moneys received from the federal government that are transferred to the trust.

(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust.

(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust.

(4) Interest earned on any moneys in the trust.

(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.

(6) All other moneys received by the trust from any other source.

(c) Moneys in the trust, and in any accounts in that fund, upon appropriation by the Legislature, shall be expended by the authority for purposes of this division.

19021.

 The authority shall administer the trust exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust.

19022.

 Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.

PART 4. Responsibilities of the Authority

19030.

 (a) The authority shall administer the trust for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.

(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:

(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.

(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.

(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authority’s operation.

19031.

 Disbursements from the trust may be provided through any of the following methods:

(a) Direct credits on ratepayer bills.

(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.

(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.

19032.

 (a) Eligible costs that may be reimbursed by the trust include, but are not limited to, all of the following:

(1) Transportation electrification programs and incentives.

(2) Building electrification programs and incentives.

(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.

(4) Programs to promote equity and affordability for low-income customers.

(5) Wildfire mitigation activities.

(6) Distributed energy resource incentives.

(7) Administrative and overhead costs associated with the authority’s operation.

(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.

(b) Moneys in the trust shall not be used for either of the following costs:

(1) Shareholder incentives or return on shareholder equity for an electrical corporation.

(2) Administrative or overhead costs incurred by a state agency.

PART 5. Responsibilities of the Public Utilities Commission and Energy Commission

19040.

 (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.

(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.

(c) The commission and Energy Commission shall jointly approve the authority’s annual administrative and overhead costs if those costs are reasonable.

(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust is operated efficiently for the purposes authorized pursuant to this division.

SECTION 1.Section 382 of the Public Utilities Code is amended to read:

382.

(a)Programs provided to low-income electricity customers, including, but not limited to, targeted energy-efficiency services and the California Alternate Rates for Energy program shall be funded at not less than 1996 authorized levels based on an assessment of customer need.

(b)In order to meet legitimate needs of electricity and gas customers who are unable to pay their electricity and gas bills and who satisfy eligibility criteria for assistance, recognizing that electricity is a basic necessity, and that all residents of the state should be able to afford essential electricity and gas supplies, the commission shall ensure that low-income ratepayers are not jeopardized or overburdened by monthly energy expenditures. Energy expenditure may be reduced through the establishment of different rates for low-income ratepayers, different levels of rate assistance, and energy efficiency programs.

(c)This section does not prohibit electricity and gas providers from offering any special rate or program for low-income ratepayers that is not specifically required in this section.

(d)An assessment of the needs of low-income electricity and gas ratepayers shall be conducted periodically by the commission with the assistance of the Low-Income Oversight Board. A periodic assessment shall be made not less often than every third year. The assessment shall evaluate low-income program implementation and the effectiveness of weatherization services and energy efficiency measures in low-income households. The assessment shall consider whether existing programs adequately address low-income electricity and gas customers’ energy expenditures, hardship, language needs, and economic burdens.

(e)(1)The commission shall, by not later than December 31, 2020, ensure that all eligible low-income electricity and gas customers are given the opportunity to participate in low-income energy efficiency programs, including customers occupying apartments or similar multiunit residential structures. The commission and electrical corporations and gas corporations shall make all reasonable efforts to coordinate ratepayer-funded programs with other energy conservation and efficiency programs and to obtain additional federal funding to support actions undertaken pursuant to this subdivision.

(2)These programs shall be designed to provide long-term reductions in energy consumption at the dwelling unit based on an audit or assessment of the dwelling unit, and may include improved insulation, energy efficient appliances, measures that use solar energy, and other improvements to the physical structure.

(f)The commission shall allocate funds necessary to meet the low-income objectives in this section.