California 2019 2019-2020 Regular Session

California Assembly Bill AB961 Amended / Bill

Filed 04/23/2019

                    Amended IN  Assembly  April 23, 2019 Amended IN  Assembly  March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 961Introduced by Assembly Member ReyesFebruary 21, 2019 An act to add Section 383 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 961, as amended, Reyes. Energy programs and projects: nonenergy benefits.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Pursuant to existing law, the commission supervises various energy efficiency, renewable energy resource, self- and distributed-generation, and demand response programs.This bill would require the commission to (1) establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs, (2) meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects, (3) give preference to producing incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities, as defined, and (4) track the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs and report those benefits during program evaluations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Unrecognized nonenergy benefits in cost-effectiveness tests employed by the Public Utilities Commission devalue important community benefits of clean energy and energy efficiency distributed energy resource projects and discourage beneficial investments in environmental and social justice communities.(b) Nonenergy benefits represent the array of diverse impacts of energy programs and projects beyond the generation, conservation, and transportation of energy. Nonenergy benefits exist in three overarching categories: participant nonenergy benefits, utility nonenergy benefits, and societal nonenergy benefits.(c) Participant nonenergy benefits accrue to the program participants, including, but not limited to, reduced building or home operating costs, lower energy burden, increased property value, improved health, safety, and comfort, educational opportunities, increased energy reliability and household resilience, asset ownership, and beneficial fuel switching.(d) Utility nonenergy benefits accrue as indirect costs or savings to the utility, including, but not limited to, bill payment improvements and reduced arrearages, reduced bad debt, infrastructure savings, improved fire safety, system resilience, and increased reliability for customers.(e) Societal nonenergy benefits represent indirect program effects beyond those realized by ratepayers, the utility, or participants, and they accrue to society at large, including, but not limited to, quality local job creation, economic development, growth of tax receipts, increased community resilience, increased labor productivity, lower energy costs, increased property values, neighborhood stability, reduced emissions of greenhouse gases, improved air quality and other environmental benefits, avoided short- and long-term displacement, improved fire safety, development of and access to new technologies, improved public health and reduced health care costs, meaningful community engagement, community pride, ratepayer satisfaction through thoughtful equity and inclusion, reduced water use, and reduced reliance on fossil fuels.(f) Prioritizing Incorporating nonenergy benefits produces greater benefits to all ratepayers by increasing the societal benefits produced by public funds. Recognizing, tracking, and promoting Incorporating and tracking these benefits supports investments essential to Californias transition to a clean energy economy.SEC. 2. Section 383 is added to the Public Utilities Code, to read:383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.

 Amended IN  Assembly  April 23, 2019 Amended IN  Assembly  March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 961Introduced by Assembly Member ReyesFebruary 21, 2019 An act to add Section 383 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 961, as amended, Reyes. Energy programs and projects: nonenergy benefits.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Pursuant to existing law, the commission supervises various energy efficiency, renewable energy resource, self- and distributed-generation, and demand response programs.This bill would require the commission to (1) establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs, (2) meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects, (3) give preference to producing incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities, as defined, and (4) track the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs and report those benefits during program evaluations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Assembly  April 23, 2019 Amended IN  Assembly  March 25, 2019

Amended IN  Assembly  April 23, 2019
Amended IN  Assembly  March 25, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 961

Introduced by Assembly Member ReyesFebruary 21, 2019

Introduced by Assembly Member Reyes
February 21, 2019

 An act to add Section 383 to the Public Utilities Code, relating to energy. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 961, as amended, Reyes. Energy programs and projects: nonenergy benefits.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Pursuant to existing law, the commission supervises various energy efficiency, renewable energy resource, self- and distributed-generation, and demand response programs.This bill would require the commission to (1) establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs, (2) meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects, (3) give preference to producing incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities, as defined, and (4) track the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs and report those benefits during program evaluations.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Pursuant to existing law, the commission supervises various energy efficiency, renewable energy resource, self- and distributed-generation, and demand response programs.

This bill would require the commission to (1) establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs, (2) meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects, (3) give preference to producing incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities, as defined, and (4) track the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs and report those benefits during program evaluations.

## Digest Key

## 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) Unrecognized nonenergy benefits in cost-effectiveness tests employed by the Public Utilities Commission devalue important community benefits of clean energy and energy efficiency distributed energy resource projects and discourage beneficial investments in environmental and social justice communities.(b) Nonenergy benefits represent the array of diverse impacts of energy programs and projects beyond the generation, conservation, and transportation of energy. Nonenergy benefits exist in three overarching categories: participant nonenergy benefits, utility nonenergy benefits, and societal nonenergy benefits.(c) Participant nonenergy benefits accrue to the program participants, including, but not limited to, reduced building or home operating costs, lower energy burden, increased property value, improved health, safety, and comfort, educational opportunities, increased energy reliability and household resilience, asset ownership, and beneficial fuel switching.(d) Utility nonenergy benefits accrue as indirect costs or savings to the utility, including, but not limited to, bill payment improvements and reduced arrearages, reduced bad debt, infrastructure savings, improved fire safety, system resilience, and increased reliability for customers.(e) Societal nonenergy benefits represent indirect program effects beyond those realized by ratepayers, the utility, or participants, and they accrue to society at large, including, but not limited to, quality local job creation, economic development, growth of tax receipts, increased community resilience, increased labor productivity, lower energy costs, increased property values, neighborhood stability, reduced emissions of greenhouse gases, improved air quality and other environmental benefits, avoided short- and long-term displacement, improved fire safety, development of and access to new technologies, improved public health and reduced health care costs, meaningful community engagement, community pride, ratepayer satisfaction through thoughtful equity and inclusion, reduced water use, and reduced reliance on fossil fuels.(f) Prioritizing Incorporating nonenergy benefits produces greater benefits to all ratepayers by increasing the societal benefits produced by public funds. Recognizing, tracking, and promoting Incorporating and tracking these benefits supports investments essential to Californias transition to a clean energy economy.SEC. 2. Section 383 is added to the Public Utilities Code, to read:383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.

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

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

SECTION 1. The Legislature finds and declares all of the following:(a) Unrecognized nonenergy benefits in cost-effectiveness tests employed by the Public Utilities Commission devalue important community benefits of clean energy and energy efficiency distributed energy resource projects and discourage beneficial investments in environmental and social justice communities.(b) Nonenergy benefits represent the array of diverse impacts of energy programs and projects beyond the generation, conservation, and transportation of energy. Nonenergy benefits exist in three overarching categories: participant nonenergy benefits, utility nonenergy benefits, and societal nonenergy benefits.(c) Participant nonenergy benefits accrue to the program participants, including, but not limited to, reduced building or home operating costs, lower energy burden, increased property value, improved health, safety, and comfort, educational opportunities, increased energy reliability and household resilience, asset ownership, and beneficial fuel switching.(d) Utility nonenergy benefits accrue as indirect costs or savings to the utility, including, but not limited to, bill payment improvements and reduced arrearages, reduced bad debt, infrastructure savings, improved fire safety, system resilience, and increased reliability for customers.(e) Societal nonenergy benefits represent indirect program effects beyond those realized by ratepayers, the utility, or participants, and they accrue to society at large, including, but not limited to, quality local job creation, economic development, growth of tax receipts, increased community resilience, increased labor productivity, lower energy costs, increased property values, neighborhood stability, reduced emissions of greenhouse gases, improved air quality and other environmental benefits, avoided short- and long-term displacement, improved fire safety, development of and access to new technologies, improved public health and reduced health care costs, meaningful community engagement, community pride, ratepayer satisfaction through thoughtful equity and inclusion, reduced water use, and reduced reliance on fossil fuels.(f) Prioritizing Incorporating nonenergy benefits produces greater benefits to all ratepayers by increasing the societal benefits produced by public funds. Recognizing, tracking, and promoting Incorporating and tracking these benefits supports investments essential to Californias transition to a clean energy economy.

SECTION 1. The Legislature finds and declares all of the following:(a) Unrecognized nonenergy benefits in cost-effectiveness tests employed by the Public Utilities Commission devalue important community benefits of clean energy and energy efficiency distributed energy resource projects and discourage beneficial investments in environmental and social justice communities.(b) Nonenergy benefits represent the array of diverse impacts of energy programs and projects beyond the generation, conservation, and transportation of energy. Nonenergy benefits exist in three overarching categories: participant nonenergy benefits, utility nonenergy benefits, and societal nonenergy benefits.(c) Participant nonenergy benefits accrue to the program participants, including, but not limited to, reduced building or home operating costs, lower energy burden, increased property value, improved health, safety, and comfort, educational opportunities, increased energy reliability and household resilience, asset ownership, and beneficial fuel switching.(d) Utility nonenergy benefits accrue as indirect costs or savings to the utility, including, but not limited to, bill payment improvements and reduced arrearages, reduced bad debt, infrastructure savings, improved fire safety, system resilience, and increased reliability for customers.(e) Societal nonenergy benefits represent indirect program effects beyond those realized by ratepayers, the utility, or participants, and they accrue to society at large, including, but not limited to, quality local job creation, economic development, growth of tax receipts, increased community resilience, increased labor productivity, lower energy costs, increased property values, neighborhood stability, reduced emissions of greenhouse gases, improved air quality and other environmental benefits, avoided short- and long-term displacement, improved fire safety, development of and access to new technologies, improved public health and reduced health care costs, meaningful community engagement, community pride, ratepayer satisfaction through thoughtful equity and inclusion, reduced water use, and reduced reliance on fossil fuels.(f) Prioritizing Incorporating nonenergy benefits produces greater benefits to all ratepayers by increasing the societal benefits produced by public funds. Recognizing, tracking, and promoting Incorporating and tracking these benefits supports investments essential to Californias transition to a clean energy economy.

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) Unrecognized nonenergy benefits in cost-effectiveness tests employed by the Public Utilities Commission devalue important community benefits of clean energy and energy efficiency distributed energy resource projects and discourage beneficial investments in environmental and social justice communities.

(b) Nonenergy benefits represent the array of diverse impacts of energy programs and projects beyond the generation, conservation, and transportation of energy. Nonenergy benefits exist in three overarching categories: participant nonenergy benefits, utility nonenergy benefits, and societal nonenergy benefits.

(c) Participant nonenergy benefits accrue to the program participants, including, but not limited to, reduced building or home operating costs, lower energy burden, increased property value, improved health, safety, and comfort, educational opportunities, increased energy reliability and household resilience, asset ownership, and beneficial fuel switching.

(d) Utility nonenergy benefits accrue as indirect costs or savings to the utility, including, but not limited to, bill payment improvements and reduced arrearages, reduced bad debt, infrastructure savings, improved fire safety, system resilience, and increased reliability for customers.

(e) Societal nonenergy benefits represent indirect program effects beyond those realized by ratepayers, the utility, or participants, and they accrue to society at large, including, but not limited to, quality local job creation, economic development, growth of tax receipts, increased community resilience, increased labor productivity, lower energy costs, increased property values, neighborhood stability, reduced emissions of greenhouse gases, improved air quality and other environmental benefits, avoided short- and long-term displacement, improved fire safety, development of and access to new technologies, improved public health and reduced health care costs, meaningful community engagement, community pride, ratepayer satisfaction through thoughtful equity and inclusion, reduced water use, and reduced reliance on fossil fuels.

(f) Prioritizing Incorporating nonenergy benefits produces greater benefits to all ratepayers by increasing the societal benefits produced by public funds. Recognizing, tracking, and promoting Incorporating and tracking these benefits supports investments essential to Californias transition to a clean energy economy.

SEC. 2. Section 383 is added to the Public Utilities Code, to read:383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.

SEC. 2. Section 383 is added to the Public Utilities Code, to read:

### SEC. 2.

383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.

383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.

383. (a) For purposes of this section, environmental section, the following terms have the following meanings:(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.(b) The commission shall do all of the following:(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.



383. (a) For purposes of this section, environmental section, the following terms have the following meanings:

(1) Distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.

(2) Environmental and social justice communities means communities identified as disadvantaged communities pursuant to Section 39711 of the Health and Safety Code, tribal lands, census tracts or equivalent geographic areas defined by the United States Census Bureau in which median household incomes are below 80 percent of area median income, and households with median household income less than 80 percent of area median income. Code.

(b) The commission shall do all of the following:

(1) Establish common definitions of nonenergy benefits and attempt to determine consistent values for use in all clean energy and energy efficiency distributed energy resource programs.

(2) Meaningfully consider and prioritize producing nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects.

(3) Give preference to producing Incorporate nonenergy benefits in clean energy and energy efficiency distributed energy resource programs and projects in environmental and social justice communities.

(4) Track those benefits the nonenergy benefits produced in clean energy and energy efficiency distributed energy resource programs during program evaluations.