Bill Text: CA SB998 | 2011-2012 | Regular Session | Amended
Bill Title: Energy efficiency, renewable energy, and distributed
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2012-05-24 - Held in committee and under submission. [SB998 Detail]
Download: California-2011-SB998-Amended.html
BILL NUMBER: SB 998 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 2, 2012
AMENDED IN SENATE APRIL 17, 2012
INTRODUCED BY Senator De León
(Coauthors: Senators Blakeslee and Correa)
(Coauthor: Assembly Member Solorio)
FEBRUARY 6, 2012
An act to add Section 2079.10b to the Civil Code,
to amend Section 25402.9 of the Public Resources Code, and
to amend Sections 777.1 and 779.2 of, and to add Chapter 7.6
(commencing with Section 2833) to Part 2 of Division 1 of, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 998, as amended, De León. Energy efficiency, renewable energy,
and distributed generation on-bill repayment programs.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations, as defined. Existing law authorizes the
commission to fix the rates and charges for every public utility, and
requires that those rates and charges be just and reasonable.
This bill would require the commission to require an electrical
corporation and gas corporation with 100,000 or more service
connections in the state to develop and implement an on-bill
repayment program, as defined, for eligible energy efficiency,
renewable energy, and distributed generation investments, financed
pursuant to an agreement with an OBR partner, as defined, on terms
that the commission approves and ensures that the terms are just and
reasonable. The bill would require the commission ensure that any
on-bill repayment program approved by the commission include certain
elements. The bill would authorize the commission to require an
electrical corporation or gas corporation to treat any resulting
shortfall in payment for electric or gas service consistent with the
rules established by the commission for a customer's failure to pay
for electric or gas service. The bill would authorize the commission
to order an electrical corporation or gas corporation with less than
100,000 service connections in the state to establish on-bill
repayment programs based upon each utility's individual
circumstances.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill would require action by the
commission to implement its requirements, a violation of the
commission's orders would impose a state-mandated local program by
creating a new crime.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2079.10b is added to the
Civil Code, to read:
2079.10b. (a) On or after July 1, 2013, every seller of real
property subject to an on-bill repayment obligation, pursuant to
Chapter 7.6 (commencing with Section 2833) of Part 2 of Division 1 of
the Public Utilities Code, shall deliver to the buyer an on-bill
repayment notice and disclosure as adopted by the Public Utilities
Commission pursuant to subparagraph (B) of paragraph (2) of
subdivision (b) of Section 2835 of the Public Utilities Code.
(b) Upon delivery of the completed notice and disclosure form to
the buyer of real property, the seller or agent is not required to
provide additional information relative to the on-bill repayment
contract and the information in the notice and disclosure form is
adequate to inform the buyer about the existence of the energy
efficiency, renewable energy, or distributed generation improvement,
the on-bill repayment program contract, and the repayment obligation
that will be assigned to and assumed by the buyer upon beginning
electric or gas service pursuant to Section 2835 of the Public
Utilities Code.
SEC. 2. SECTION 1. Section 25402.9
of the Public Resources Code is amended to read:
25402.9. (a) On or before July 1, 1996, the commission shall
develop, adopt, and publish an informational booklet to educate and
inform homeowners, rental property owners, renters, sellers, brokers,
and the general public about the statewide home energy rating
program adopted pursuant to Section 25942.
(b) In the development of the booklet, the commission shall
consult with representatives of the Department of Real Estate, the
Department of Housing and Community Development, the Public Utilities
Commission, investor-owned and municipal utilities, cities and
counties, real estate licensees, home builders, mortgage lenders,
home appraisers and inspectors, home energy rating organizations,
contractors who provide home energy services, consumer groups, and
environmental groups.
(c) It is the intent of the Legislature that when the
informational booklet is next updated, as existing resources permit
or as private resources are made available, that the booklet include
information about home energy conservation and about on-bill
repayment programs developed and implemented pursuant to Chapter 7.6
(commencing with Section 2833) of Part 2 of Division 1 of the Public
Utilities Code. The commission may charge a fee for the informational
booklet to recover its costs under this section.
SEC. 3. SEC. 2. Section 777.1 of the
Public Utilities Code is amended to read:
777.1. (a) If an electrical, gas, heat, or water corporation
furnishes residential service to residential occupants through a
master meter in a multiunit residential structure, mobilehome park,
or permanent residential structure in a labor camp, as defined in
Section 17008 of the Health and Safety Code, and the owner, manager,
or operator of the structure or park is listed by the corporation as
the customer of record, the corporation shall make every good faith
effort to inform the residential occupants, by means of a written
notice posted on the door of each residential unit at least 15 days
prior to termination, when the account is in arrears, that service
will be terminated on a date specified in the notice. If it is not
reasonable or practicable to post the notice on the door of each
residential unit, the corporation shall post two copies of the notice
in each accessible common area and at each point of access to the
structure or structures. The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will then be billed, without being required to
pay any amount which may be due on the delinquent account. The notice
also shall specify, in plain language, what the residential
occupants are required to do in order to prevent the termination of,
or to reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
corporation who can assist the residential occupants in continuing
service; and the address and telephone number of a qualified legal
services project, as defined in Section 6213 of the Business and
Professions Code, which has been recommended by the local county bar
association. The notice shall be in English and the languages listed
in Section 1632 of the Civil Code.
(b) The corporation is not required to make service available to
the residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service and meets the requirements of law and the
corporation's rules and tariffs. However, if one or more of the
residential occupants or the representative of the residential
occupants are willing and able to assume responsibility for
subsequent charges to the account to the satisfaction of the
corporation, or if there is a physical means, legally available to
the corporation, of selectively terminating service to those
residential occupants who have not met the requirements of the
corporation's rules and tariffs or for whom the representative of the
residential occupants is not responsible, the corporation shall make
service available to those residential occupants who have met those
requirements or on whose behalf those requirements have been met.
(c) If prior service for a period of time or other demonstration
of credit worthiness is a condition for establishing credit with the
corporation, residence and proof of prompt payment of rent or other
credit obligation during that period of time acceptable to the
corporation is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the
corporation pursuant to this section whose periodic payments, such as
rental payments, include charges for residential electrical, gas,
heat, or water service, where those charges are not separately
stated, may deduct from the periodic payment each payment period all
reasonable charges paid to the corporation for those services during
the preceding payment period.
(e) If a corporation furnishes residential service subject to
subdivision (a), the corporation shall not terminate that service in
any of the following situations:
(1) During the pendency of an investigation by the corporation of
a customer dispute or complaint.
(2) If the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other person
or corporation or if the obligation represented by the delinquent
account or other indebtedness was incurred with a person or
corporation other than the electrical, gas, heat, or water
corporation demanding payment therefor. This paragraph does not apply
to an on-bill repayment obligation established pursuant to Chapter
7.6 (commencing with Section 2833) of Part 2.
(4) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) If a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the residential occupant or the
representative of the residential occupants may commence an action
for the recovery of all of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) of this section shall be recorded pursuant to Section
697.310 of the Code of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the corporation, the
corporation shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants made a good faith effort to have the service continued
without interruption.
(i) The commission shall adopt rules and orders necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the corporation has made every reasonable effort to continue service
to the residential occupants. The rules and orders shall include, but
are not limited to, reasonable penalties for a violation of this
section, guidelines for assistance to residents in the enforcement of
this section, and requirements for the notice prescribed by
subdivision (a), including, but not limited to, clear wording, large
and boldface type, and comprehensive instructions to ensure full
notice to the resident.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenants' association.
(l) For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.
SEC. 4. SEC. 3. Section 779.2 of the
Public Utilities Code is amended to read:
779.2. (a) No electrical, gas, heat, telephone, or water
corporation may terminate residential service for nonpayment of any
delinquent account or other indebtedness owed by the customer or
subscriber to any other person or corporation or when the obligation
represented by the delinquent account or other indebtedness was
incurred with a person or corporation other than the electrical, gas,
heat, telephone, or water corporation demanding payment therefor.
(b) (1) Subdivision (a) does not apply to a telephone corporation
operating within service areas which furnishes billing services to
the subscribers of a telephone corporation operating between service
areas pursuant to tariffs on file with the commission providing for
the furnishing of those billing services. The commission shall
require that these tariffs also provide for adequate subscriber
notice, review, and appeal procedures prior to any termination of
service for nonpayment of a delinquent account.
(2) Subdivision (a) does not apply to any privately owned or
publicly owned public utility which collects sanitation or sewerage
charges for a public agency pursuant to agreement under Section
54346.2 of the Government Code or Section 5472.5 of the Health and
Safety Code.
(3) Subdivision (a) does not apply to an on-bill repayment
obligation established pursuant to Chapter 7.6 (commencing with
Section 2833) of Part 2.
SEC. 5. SEC. 4. Chapter 7.6
(commencing with Section 2833) is added to Part 2 of Division 1 of
the Public Utilities Code, to read:
CHAPTER 7.6. ENERGY EFFICIENCY AND RENEWABLE ENERGY ON-BILL
REPAYMENT PROGRAMS
2833. The purpose of this chapter is to establish on-bill
repayment programs by electrical corporations and gas corporations,
subject to the direction and supervision of the commission, to enable
increased access to financing for clean energy improvements, to
incentivize private investors to invest in California clean energy
improvements, to stimulate the state economy by creating jobs for
contractors and other persons who complete new energy improvements,
and to reinforce the leadership role of the state in the new energy
economy, thereby attracting clean energy manufacturing facilities and
related jobs to the state.
2834. For purposes of this chapter, the following terms have the
following meanings:
(a) "OBR partner" means the person or entity owed payment for
eligible energy efficiency, renewable energy, or distributed
generation investments pursuant to an on-bill reimbursement program,
and may include, but is not limited to, a bank, savings and loan,
credit union, or independent solar energy producer, as defined in
Article 3 (commencing with Section 2868) of Chapter 9. Financing may
be provided in the form of a loan, lease, power purchase agreement,
energy service agreement, or other financing structure as approved by
the commission.
(b) "On-bill repayment program" means a program approved by the
commission that enables building owners or occupants, through their
regular utility billings for electric or gas service, to pay for the
costs to finance eligible energy efficiency, renewable energy, or
distributed generation investments pursuant to an agreement with an
OBR partner.
(c) "Runs with the meter," in reference to an on-bill repayment
program, means that the obligation to make on-bill repayment for
energy efficiency, renewable energy, or distributed generation
improvements is a condition precedent for receiving electric or gas
service for the property that receives the benefits of the
improvements.
2835. (a) The commission shall require each electrical
corporation and gas corporation with 100,000 or more service
connections in the state to develop and implement on-bill repayment
programs for eligible energy efficiency, renewable energy, and
distributed generation investments. The commission may order an
electrical corporation or gas corporation with fewer than 100,000
service connections in the state to establish on-bill repayment
programs based upon each utility's individual circumstances. Nothing
in this chapter requires that the on-bill repayment programs
established for each electrical corporation and gas corporation that
is subject to the requirements of this chapter be identical and the
commission may vary program elements for each utility based upon each
utility's individual circumstances. Nothing in this chapter limits
the authority of the commission to approve and supervise separate
on-bill repayment programs with different features for different
categories of properties, including single-family residential,
multifamily residential, commercial, industrial, public buildings,
and other categories of properties that the commission determines to
be appropriate. The commission shall approve the on-bill repayment
programs developed by each electrical corporation and gas corporation
to ensure that the terms of the program are just and reasonable and
shall supervise the programs to ensure that the programs are
administered in compliance with the terms approved by the commission.
(b) (1) The commission shall establish requirements to be included
by each electrical corporation or gas corporation in the utility's
on-bill repayment programs that are submitted to the commission for
approval, including, but not limited to, project eligibility
criteria, the establishment of energy and cost savings evaluation
standards and requirements, prepayment options, and project
inspection services or requirements.
(2) (A) The commission shall
adopt rules for an electrical corporation, gas corporation, or agent
of the utility, to provide adequate notice and disclosure to a new
customer that applies to the utility for electric or gas service for
a property that is subject to an on-bill repayment program contract.
(B) The commission shall adopt a standard notice and disclosure
form for a seller of real property subject to an on-bill repayment
contract to supply to a buyer of the property pursuant to Section
2079.10b of the Civil Code.
(3) The commission shall ensure that any on-bill repayment program
for residential customers approved by the commission includes both
of the following program elements:
(A) Protections and program access for middle- and low-income
customers.
(B) Adequate disclosure that allows customers to knowingly weigh
the benefits of investment and determine whether the investment is in
the customer's best interest.
(c) (1) Investments for energy efficiency, renewable energy, and
distributed generation pursuant to a commission approved on-bill
repayment program are eligible for on-bill repayment, with the
repayment obligation running with the meter pursuant to paragraph
(5).
(2) Each electrical corporation and gas corporation shall require
that the utility be provided with a copy of financing documents as a
condition for providing on-bill repayment services.
(3) The on-bill repayment amount shall be listed by the electrical
corporation or gas corporation as a separate line item on the
utility's billing to the customer.
(4) (A) The commission shall require that on-bill repayment
amounts collected by an electrical corporation, gas corporation, or
the utility's agents be promptly remitted to the OBR partner.
(B) The commission may require, if the amount paid by the customer
is less than the amount billed to the customer, that the amount paid
by the customer be prorated in proportion to the respective charges
of the electrical corporation or gas corporation and the OBR partner
and require that the portion owed to the OBR partner be promptly
remitted to the OBR partner. If the commission requires that payment
be prorated, any shortfall in payment by the customer is a failure to
pay for electric or gas service and shall be treated consistent with
the rules established by the commission for a customer's failure to
pay for service.
(C) For purposes of Sections 777.1 and 779.2, the on-bill
repayment obligation is a payment obligation owed by the customer to
the electrical corporation or gas corporation and payment by the
customer to the electrical corporation or gas corporation
extinguishes that portion of the debt owed by the customer
irrespective of whether the electrical corporation or gas corporation
pays the OBR partner pursuant to the on-bill repayment program. The
obligation of the electrical corporation or gas corporation to pay
the OBR partner pursuant to the on-bill repayment program does not
make the obligation owed by the consumer a debt owed to a third party
pursuant to paragraph (3) of subdivision (e) of Section 777.1 or
subdivision (a) of Section 779.2.
(D) If a dispute arises between the customer and the OBR partner
over the customer's obligation to pay the on-bill repayment amount,
the electrical corporation, gas corporation, or the utility's agent
shall hold the amounts collected on behalf of the OBR partner in an
interest-bearing account, if instructed to do so by a court having
jurisdiction over the dispute, or by an arbitrator appointed to
resolve the dispute.
(5) The obligation to pay pursuant to an on-bill repayment program
contract runs with the meter. Acceptance of electric or gas service,
following submission of an application for that service and receipt
of the notice and disclosure pursuant to rules adopted by the
commission pursuant to paragraph (2) of subdivision (b), operates as
an assignment of the contract and assumption of the contractual
rights and obligations of the on-bill repayment contract for the
duration of service and the going forward obligation to pay on-bill
reimbursement is an obligation for the receipt of electric or gas
service. Acceptance of electric or gas service does not operate as an
assumption of any past due amounts owed prior to the beginning of
that service by the person or entity that acquires the property.
SEC. 6. SEC. 5. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
