An act to amend Section 748.5 of the Public Utilities Code, relating to electricity. An act to amend Section 913.9 of the Public Utilities Code, relating to public utilities.
Summary
AB 1342 makes two changes to Public Utilities Commission reporting and California Climate Credit rules. First, it changes an existing PUC reporting requirement from every two years to every year for ratepayer-funded energy efficiency programs that are similar to programs run by the Energy Commission, the Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority. Second, it revises the electric California Climate Credit provisions so that revenues from the direct allocation of greenhouse gas allowances must be credited to customers in June, July, August, and September, rather than under the prior general framework.
The bill also directs the PUC to ensure that a larger share of those climate-credit revenues goes to residential customers in hotter regions of the state, if the referenced climate-law extension occurs beyond January 1, 2031. It preserves the existing ability of the commission to allocate up to 15 percent of allowance revenues to clean energy and energy efficiency projects, and it keeps the customer outreach requirement for informing the public about the credit. The bill states that no state reimbursement is required for local agencies or school districts.
Impact
AB 1342 would amend Public Utilities Code Sections 913.9 and 748.5. Its practical effect is to require more frequent legislative reporting on utility energy-efficiency programs and to change the timing and targeting of electric California Climate Credit distributions. Electrical corporations and the Public Utilities Commission would need to adjust crediting practices so residential, small business, and emissions-intensive trade-exposed customers receive credits in the summer months, with a future requirement to direct a larger share to hotter regions under specified conditions. The bill also maintains the existing framework for using a portion of greenhouse-gas allowance revenues for clean energy and energy efficiency projects.
Sentiment
The available voting history suggests the bill was received favorably in committee, with a 18-0 do-pass vote and recommendation to the consent calendar. No committee transcript is available, so there is no recorded debate to indicate opposition or support beyond the unanimous committee action. Overall, the bill appears to have been treated as a relatively noncontroversial utility and climate-credit administrative measure.
Contention
The main policy issues embedded in the bill are the redistribution of climate-credit revenues and the geographic targeting of benefits to hotter regions, which could raise questions about fairness among customer classes and regions. Another possible point of discussion is the shift from biennial to annual reporting, which increases oversight but also adds administrative burden for the PUC. However, no recorded committee testimony is available, and the unanimous committee vote indicates no visible contention at the committee stage.