BILL NUMBER: AB 1511 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 18, 2015
INTRODUCED BY Committee on Insurance
Assembly Members Perea, Daly,
and Salas
( Coauthors: Assembly Members
Cooley, Cooper, Frazier,
Gipson, and O'Donnell )
MARCH 5, 2015
An act to amend Sections 985.5, 1067.13, 1858.35,
11629.81 of, and to repeal Section 11759.2 of, the Insurance Code,
relating to insurance. An act to add Section 399.33
to, and to repeal and add Sections 381.2 and 740.2 of, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1511, as amended, Committee on Insurance
Perea . Insurance: reports.
Energy.
(1) Existing law requires the State Energy Resources Conservation
and Development Commission (Energy Commission), by March 1, 2010, to
establish a regulatory proceeding to develop and implement a
comprehensive program to achieve greater energy savings in California'
s existing residential and nonresidential building stock.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations. Existing law authorizes the PUC to fix the rates and
charges for every public utility and requires that those rates and
charges be just and reasonable. Existing law requires the PUC, in
consultation with the Energy Commission, to identify all potentially
achievable cost-effective electricity efficiency savings and to
establish efficiency targets for electrical corporations to achieve
pursuant to their procurement plan. Existing law requires the PUC, in
consultation with the Energy Commission, to identify all potentially
achievable cost-effective natural gas efficiency savings and to
establish efficiency targets for gas corporations to achieve, and
requires that a gas corporation first meet its unmet resource needs
through all available gas efficiency and demand reduction resources
that are cost effective, reliable, and feasible. Existing law
requires the PUC, by March 1, 2010, to investigate the ability of
electrical corporations and gas corporations to provide various
energy efficiency financing options to their customers for the
purposes of implementing the comprehensive program developed by the
Energy Commission described above.
This bill would require the PUC to authorize electrical
corporations and gas corporations to recover in rates the reasonable
costs of a program that provides financial incentives or rebates to
customers of the utility to increase energy efficiency in existing
buildings based on all estimated energy savings and energy usage
reductions, taking into consideration overall reduction in normalized
metered energy consumption as a measure of energy savings. The bill
would require the program to include energy usage reductions
resulting from the installation of a measure or equipment required
for modifications to existing buildings to bring them into conformity
with, or exceed, existing energy efficiency building standards.
(2) The California Renewables Portfolio Standard Program requires
the PUC to implement annual procurement targets for the procurement
of eligible renewable energy resources for all retail sellers to
achieve the targets and goals of the program. Existing law requires
each electrical corporation to submit to the PUC a distribution
resources plan proposal to identify optimal locations for the
deployment of distributed resources.
This bill would authorize a retail seller of electricity or a
local publicly owned electric utility to include electricity
generated by, or saved as a result of the use of, distributed
resources in meeting its renewables portfolio standard procurement
obligations.
(3) Existing law requires the PUC, in consultation with the Energy
Commission, the State Air Resources Board, electrical corporations,
and the motor vehicle industry, to evaluate policies to develop
infrastructure sufficient to overcome any barriers to the widespread
deployment and use of plug-in hybrid and electric vehicles and, by
July 1, 2011, to adopt rules that address specified matters.
This bill would delete the requirement that the PUC evaluate
policies to develop infrastructure sufficient to overcome any
barriers to the widespread deployment and use of plug-in hybrid and
electric vehicles and, by July 1, 2011, to adopt rules that address
specified matters. The bill would require the PUC to require each
electrical corporation to file an electric vehicle infrastructure
plan to develop, own, and operate electric vehicle charging stations
and service equipment to support the widespread deployment and use of
plug-in hybrid and electric vehicles. The bill would require that
the plans encourage and support the widespread deployment of electric
vehicles, protect competitive markets for electric vehicle charging
equipment, and support consumer choice in electric vehicle charging
equipment. The bill would require the PUC, by March 1, 2016, after
notice and an opportunity to comment, to approve, or modify and
approve, the electric vehicle infrastructure plan filed by each
electrical corporation and the rate changes to implement the plan, if
the PUC determines that the plan reasonably assists in achieving the
state's electric vehicle deployment goals necessary to reduce
emissions of greenhouse gases and reduce the use of petroleum.
(4) The Public Utilities Act makes any public utility that
violates the act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the PUC, guilty
of a crime.
Because the provisions of this bill are within the act and require
action by the PUC to implement its requirements, a violation of
these provisions would impose a state-mandated local program by
creating a new crime.
(5) 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.
Existing law requires the Insurance Commissioner to submit
specified reports, including reports on the insolvency of admitted
insurers and the number of complaints by persons aggrieved by a rate
charged, to the Governor and the Legislature. Existing law requires
the California Life and Health Insurance Guarantee Association to
submit a financial report on its activities to the Governor and the
Legislature.
This bill would require those reports to be submitted to the
Senate Committee on Insurance and the Assembly Committee on Insurance
instead of to the Legislature.
Existing law requires the California Automobile Assigned Risk Plan
to submit a report regarding the status of the low-cost automobile
insurance program administered by the plan to the commissioner
annually and as the plan deems prudent.
This bill would require the plan to submit the report to the
Senate Committee on Insurance and the Assembly Committee on
Insurance, in addition to the commissioner.
Existing law requires a licensed rating organization designated as
the commissioner's statistical agent to prepare a report on the
potential underreporting of workers' compensation exposure in the
taxicab industry, and to submit that report to the commissioner by
April 1, 2003, and to the Governor and the Legislature by May 1,
2003.
This bill would repeal that provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) In January of 2013, Governor Brown issued a zero-emission
vehicle action plan calling for one and one-half million
zero-emission vehicles in California by 2025 and the infrastructure
to support one million zero-emission vehicles by 2020.
(b) In Decision 14-12-079 (December 18, 2014), Phase 1 Decision
Establishing Policy to Expand the Utilities' Role in Development of
Electric Vehicle Infrastructure, the Public Utilities Commission set
aside that part of Decision 11-07-029 that had required electrical
corporations to demonstrate a "market failure" or "underserved market"
as part of any request for authority to own plug-in electric vehicle
charging infrastructure.
(c) In January of 2015, Governor Brown proposed a plan to reduce
petroleum use in cars and trucks by 50 percent by 2030.
(d) A significant barrier still exists relative to the
availability of electric vehicle charging stations and service
equipment to support electric vehicle charging needed in public
locations, multifamily dwellings, workplaces, and fleet locations to
support California's goals for reducing the use of petroleum.
(e) It is estimated that in order to support the need for electric
vehicle charging stations and service equipment, at least one
electric vehicle charging station and related service equipment is
needed for every four electric vehicles, compared to the current
ratio of twenty to one.
(f) If California is to achieve its aggressive goals for reducing
emissions of greenhouse gases, as well as its goals for reducing the
use of petroleum, significant electric vehicle and service equipment
infrastructure investments will need to be made by electrical
corporations.
SEC. 2. Section 381.2 of the Public
Utilities Code is repealed.
381.2. (a) By March 1, 2010, the commission, by opening a new
proceeding or amending an existing proceeding, shall investigate the
ability of electrical corporations and gas corporations to provide
various energy efficiency financing options to their customers for
the purposes of implementing the program developed pursuant to
Section 25943 of the Public Resources Code.
(b) In the report prepared pursuant to Section 384.2, the
commission shall include an assessment of each electrical corporation'
s and each gas corporation's implementation of the program developed
pursuant to Section 25943 of the Public Resources Code.
SEC. 3. Section 381.2 is added to the
Public Utilities Code , to read:
381.2. (a) (1) In coordination with the program approved pursuant
to Section 25943 of the Public Resources Code to achieve greater
energy savings in California's existing residential and
nonresidential building stock, the commission shall authorize
electrical corporations and gas corporations to recover in their
rates the reasonable costs of a program that provides financial
incentives or rebates to customers of those corporations to increase
energy efficiency in existing buildings based on all estimated energy
savings and energy usage reductions, taking into consideration
overall reduction in normalized metered energy consumption as a
measure of energy savings.
(2) The program shall include energy usage reductions resulting
from the installation of a measure or equipment required for
modifications to existing buildings to bring them into conformity
with, or exceed, the standards in Part 6 (commencing with Section
100.0) of Title 24 of the California Code of Regulations.
(3) The commission shall authorize electrical corporations and gas
corporations to count all energy savings achieved toward overall
energy efficiency goals or targets established by the commission.
(b) (1) By December 31, 2018, the commission shall, in compliance
with Section 9795 of the Government Code, report to the Legislature
summarizing the energy efficiency savings achieved pursuant to
subdivision (a).
(2) Pursuant to Section 10231.5 of the Government Code, paragraph
(1) is inoperative on December 31, 2022.
(c) It is the intent of the Legislature that, until January 1,
2020, the implementation of the program described in subdivision (a)
would not result in an increase in rates for the support of the
energy efficiency programs of electrical corporations or gas
corporations.
SEC. 4. Section 399.33 is added to the
Public Utilities Code , to read:
399.33. Notwithstanding any other provision of this article, a
retail seller or a local publicly owned electric utility may include
electricity generated by, or saved as a result of the use of,
distributed resources, as defined in Section 769, in meeting its
renewables portfolio standard procurement obligations.
SEC. 5. Section 740.2 of the Public
Utilities Code is repealed.
740.2. The commission, in consultation with the Energy
Commission, State Air Resources Board, electrical corporations, and
the motor vehicle industry, shall evaluate policies to develop
infrastructure sufficient to overcome any barriers to the widespread
deployment and use of plug-in hybrid and electric vehicles. By July
1, 2011, the commission shall adopt rules to address all of the
following:
(a) The impacts upon electrical infrastructure, including
infrastructure upgrades necessary for widespread use of plug-in
hybrid and electric vehicles and the role and development of public
charging infrastructure.
(b) The impact of plug-in hybrid and electric vehicles on grid
stability and the integration of renewable energy resources.
(c) The technological advances that are needed to ensure the
widespread use of plug-in hybrid and electric vehicles and what role
the state should take to support the development of this technology.
(d) The existing code and permit requirements that will impact the
widespread use of plug-in hybrid and electric vehicles and any
recommended changes to existing legal impediments to the widespread
use of plug-in hybrid and electric vehicles.
(e) The role the state should take to ensure that technologies
employed in plug-in hybrid and electric vehicles work in a harmonious
manner and across service territories.
(f) The impact of widespread use of plug-in hybrid and electric
vehicles on achieving the state's goals pursuant to the California
Global Warming Solutions Act of 2006 and renewables portfolio
standard program and what steps should be taken to address possibly
shifting emissions reductions responsibilities from the
transportation sector to the electrical industry.
SEC. 6. Section 740.2 is added to the
Public Utilities Code , to read:
740.2. (a) The commission shall require each electrical
corporation to file an electric vehicle infrastructure plan to
develop, own, and operate electric vehicle charging stations and
service equipment to support the widespread deployment and use of
plug-in hybrid and electric vehicles. The plan shall encourage and
support the widespread deployment of electric vehicles, protect
competitive markets for electric vehicle charging equipment, and
support consumer choice in electric vehicle charging equipment.
Applications filed by an electrical corporation prior to January 1,
2016, for approval of electric vehicle infrastructure investments
shall be considered as having been filed pursuant to this section.
(b) By March 1, 2016, after notice and an opportunity to comment,
the commission shall approve, or modify and approve, the electric
vehicle infrastructure plan filed by each electrical corporation and
the rate changes to implement the plan, if the commission determines
that the plan reasonably assists in achieving the state's electric
vehicle deployment goals necessary to reduce emissions of greenhouse
gases and reduce the use of petroleum. The commission shall not
require individual electrical corporation plans to be consistent, but
shall encourage flexibility and innovation by each electrical
corporation in seeking to achieve California's overall electric
vehicle deployment goals.
SEC. 7. 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.
SECTION 1. Section 985.5 of the Insurance Code
is amended to read:
985.5. In the case of the insolvency of an admitted insurer, the
commissioner shall prepare a report, which shall be a public record,
with respect to the causes and factors which contributed to that
insolvency. The report shall be submitted to the Governor, the Senate
Committee on Insurance, and the Assembly Committee on Insurance no
later than one year from the date of the insolvency.
SEC. 2. Section 1067.13 of the Insurance Code
is amended to read:
1067.13. The association shall be subject to examination and
regulation by the commissioner. The board of directors shall submit
to the commissioner, the Governor, the Senate Committee on Insurance,
and the Assembly Committee on Insurance each year, not later than
120 days after the association's fiscal year, a financial report in a
form approved by the commissioner and a report of its activities
during the preceding fiscal year. Upon the request of a member
insurer, the association shall provide the member insurer with a copy
of the report.
SEC. 3. Section 1858.35 of the Insurance Code
is amended to read:
1858.35. On or before May 1 of each year, the commissioner shall
submit a report to the Senate Committee on Insurance, the Assembly
Committee on Insurance, and the Governor stating the number and type
of complaints received under this article and the status and
disposition of these complaints. The commissioner may make any
recommendations for improving the efficiency and effectiveness of
complaint handling under this article.
No information shall be provided under this section pertaining to
a specified complaint against a specific insurer or rating
organization. However, the commissioner may report that information
in the aggregate.
SEC. 4. Section 11629.81 of the Insurance Code
is amended to read:
11629.81. (a) The California Automobile Assigned Risk Plan shall
report to the commissioner, the Senate Committee on Insurance, and
the Assembly Committee on Insurance on an annual basis, and at those
additional times as it deems prudent, on the status of the program.
The report shall include data regarding new policies, renewed
policies, and policy cancellations or nonrenewals.
(b) The department shall combine the report pursuant to
subdivision (a) with the report required by Section 11629.85 and
submit the combined report to the Legislature on or before March 15
of each year.
(c) A report submitted pursuant to subdivision (b) shall be
submitted in compliance with Section 9795 of the Government Code.
SEC. 5. Section 11759.2 of the Insurance Code
is repealed.