July 11, 2012
Cap and Trade Budget Trailer Bill Language: Up to 15% for Clean Energy & Efficiency Projects
SEC Members and Interested Potential Members:
The following Cap and Trade Budget Trailer bill language is moving forward toward a vote on the floor - probably tomorrow. From our initial read, this language is a mixed bag. This may be reflective of the split between the Senate - they wanted all revenue returned to ratepayers - and the Assembly that asked for a set aside for clean energy programs. Assembly Member Skinner led the charge on the clean energy program language, with the Senate none too happy about it. The language would allow the California Public Utilities Commission (CPUC) to allocate up to 15% allocation for clean energy and energy efficiency projects. This is presumed to be the language that would provide program funding that could be used under AB 1186 (Skinner). AB 1186 could take 10% of those revenues (that are to be administered by Investor Owned Utilities) and provide them in grants for energy efficiency projects to schools. BUT -- Utilities are lobbying schools to oppose the language in paragraph (a) saying that it is unfair to school districts because they are not listed as being credited directly for the Cap and Trade revenue. Your thoughts are welcomed while I am trying to find out more about this. I am talking with the Speaker’s Office, utilities, commercial energy customers and others. Ultimately, because these deals have been carefully put together and the Legislature does not want to make any further changes - it is doubtful that any change could be affected at this point. We may simply want to stay out of this one. I will keep you posted.
School Energy Coalition
AB 1478 and SB 1018 SEC. 110. Section 748.5 is added to the Public Utilities Code, to read: 748.5. (a) Except as provided in subdivision (c), the commission shall require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations to be credited directly to the residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation. (b) Not later than January 1, 2013, the commission shall require the adoption and implementation of a customer outreach plan for each electrical corporation, including, but not limited to, such measures as notices in bills and through media outlets, for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. Costs associated with the implementation of this plan are subject to recovery in rates pursuant to Section 454.
(c) The commission may allocate up to 15 percent of the revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations, for clean energy and energy efficiency projects established pursuant to statute that are administered by the electrical corporation and that are not otherwise funded by another funding source.