Bill Text: CA SB998 | 2011-2012 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
BILL NUMBER: SB 998 INTRODUCED BILL TEXT INTRODUCED BY Senator De León (Coauthor: Senator Correa) FEBRUARY 6, 2012 An act 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 introduced, De León. Energy efficiency and renewable energy on-bill repayment programs. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical 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 to develop and implement an on-bill repayment program, as defined, for eligible energy efficiency and renewable energy investments, as defined, on terms that the commission determines 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 require the electrical corporation to treat any resulting shortfall in payment for electrical or gas service consistent with the rules established by the commission for a customer's failure to pay for electrical or gas service. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. 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. For purposes of this chapter, the following terms have the following meanings: (a) "Eligible energy efficiency investment" means an expenditure for energy efficiency retrofits or improvements that would be expected to result in an annual reduction in electricity and gas billings that equals or exceeds the sum of the annual payments for the investment and meet the requirements as established by the commission in consultation with the energy commission. (b) "Eligible renewable energy or distributed generation investment" means an expenditure for an eligible renewable energy resource or distributed generation system that meet the requirements as established by the commission in consultation with the energy commission. For these purposes, "eligible renewable energy resource" means an eligible renewable energy resource pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a solar water heating system, or a solar heating collector as defined in Section 2861. (c) "Fixed" includes, but is not limited to, systems attached to a residential, commercial, industrial, agricultural, or other real property pursuant to a power purchase agreement or lease between the owner of the improvement and the owner of the real property if the power purchase agreement or lease contains all of the following: (1) The term of the power purchase agreement or lease is at least the same as the term of the on-bill repayment program. (2) The owner of the attached improvement agrees to install, maintain, and monitor the improvement for the entire term of the power purchase agreement or lease. (3) The owner of the attached improvement is not permitted to remove the system prior to completion of the term of the on-bill repayment program provided the payment obligations of the homeowner are met. (4) The right to receive electricity from the system, through a power purchase agreement or lease or the right to the system itself, is tied to the ownership of the real property and is required to be automatically transferred with the title to the real property whether the title is transferred by voluntary sale, judicial or nonjudicial foreclosure, or by any other means. (5) To ensure the property owner is guaranteed the electric power from the system for the length of the on-bill repayment program, the improvement cannot be removed if the owner of the real property or the utility is performing its obligations under the contract. (d) "On-bill repayment program" means a system approved by the commission that enables building owners or occupants to pay the costs for financing eligible energy efficiency, renewable energy, or distributed generation investments through their regular utility billings for electric service, with the financing provided by third parties, including banks, credit unions, solar service providers, or other entities as approved by the commission. 2834. (a) The commission shall require an electrical corporation to develop and implement on-bill repayment programs for eligible energy efficiency and renewable energy investments on terms that the commission determines are just and reasonable. An electrical corporation may include marketing, contractor qualification, and project inspection services in conjunction with an on-bill repayment program, to be performed either by itself or third parties designated by the electrical corporation and approved by the commission. The commission, in consultation with the Energy Commission, may establish marketing, contractor qualification, project inspection, or other program requirements for on-bill repayment programs. (b) The commission shall ensure that any on-bill repayment program approved by the commission includes all the following program elements: (1) Repayment shall be pursuant to an agreed-upon schedule or formula that is acceptable to the electrical corporation or its agent, as approved by the commission, that provides the billing and transfer services, the customer of the electrical corporation, and the third party that provides financing for the eligible energy efficiency and renewable energy investment. The payment shall be listed as a separate line item on the electrical corporation's billings. While it is the expectation that the finance charge included in the electrical corporations's billings will be less than the monetary savings that results from the eligible energy efficiency and renewable energy investment, so that customers can knowingly weigh the benefits of investments against anticipated savings, this is not an absolute requirement and customers shall have the option to pay more than the amount of savings, if offered by the third party, and the customer determines that paying off the investment over a shorter period of time is in the customer's best interest. The payment schedule may be varied by season to correspond with the anticipated seasonal savings. (2) The obligation to pay the costs of financing the energy efficiency and renewable energy investments eligible for on-bill repayment shall run with the real property upon which the improvement is fixed and shall be part of the tariff rate for the property. The commission shall require an electrical corporation or its agent, as approved by the commission, to provide notice to the new customer, of the estimated savings, the amount that remains owed, and the amount of the charge included in the monthly or other periodic billing, whenever a request is made to change the holder of the account to a new customer. A realtor or real estate agent shall disclose the amount that remains owed and the amount of the charge included in the monthly or other periodic billing the buyer of a transaction involving the property. (3) An electrical corporation or its agent, as approved by the commission, may require that it be provided with a copy of loan documents as a condition for providing on-bill repayment services. (4) Amounts collected by the electrical corporation or its agent, as approved by the commission, on behalf of a third party that provides financing for an eligible energy efficiency and renewable energy investment shall be promptly remitted to the third party. If the amount paid by the customer is less than the amount the customer was billed, the amount paid by the customer shall be prorated in proportion to the respective charges of the electrical corporation and third-party billing schedule and the portion owed to the third party shall be promptly remitted to the third party. The electrical corporation may treat any shortfall in payment by the customer as a failure to pay for electric service, consistent with the rules established by the commission for a customer's failure to pay for electrical service. (5) If a dispute arises between the customer and the third party over the customer's obligation to pay the third party, the electrical corporation may hold the moneys collected on behalf of the third party 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. (c) The electrical corporation shall treat any resulting shortfall in payment for electrical or gas service consistent with the rules established by the commission for a customer's failure to pay for electrical or gas service.