Energy: building decarbonization: notice and recordation of a decarbonization charge.

(1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake various actions in furtherance of meeting the state's clean energy and pollution reduction objectives. Existing law requires the Energy Commission to assess the potential for the state to reduce the emissions of greenhouse gases from the state's residential and commercial building stock by at least 40% below 1990 levels by January 1, 2030. This bill would require the Energy Commission, on or before December 31, 2023, to identify state and federal financing or investment solutions, as defined, that will enable electrical corporations, community choice aggregators, or other eligible entities to provide zero-emission, clean energy, or decarbonizing building upgrades. The bill would also require the Energy Commission to apply for federal financing or investment solutions, where applicable, and provide technical assistance to certain entities to apply for state and federal financing or investment solutions. The bill would require the Energy Commission, on or before December 31, 2023, to prepare and submit a report to the relevant committees of the Legislature that describes any statutory changes necessary to improve access to federal funding for financing or investment solutions. The bill would repeal these provisions on January 1, 2028. (2) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities and electrical cooperatives are under the direction of their governing boards. Existing law requires the commission, in consultation with the Independent System Operator, to establish resource adequacy requirements for all load-serving entities, defined to include electrical corporations, community choice aggregators, and electric service providers. The California Renewables Portfolio Standard Program requires the commission to establish a renewables portfolio standard requiring all retail suppliers, defined as including electrical corporations, community choice aggregators, and electric service providers, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 33% of retail sales by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. This bill would require the commission, or the governing board of a local publicly owned electric utility or electrical cooperative, to require an energy supplier, defined as an electrical corporation, local publicly owned electric utility, electric service provider, community choice aggregator, or electrical cooperative, administering a decarbonization upgrade program or initiative, to record, no later than 30 days after funding a decarbonization upgrade, a notice of decarbonization charge, as defined, with the county recorder of the county where the property subject to the decarbonization charge is located. The bill would require an energy supplier, within 30 days of full cost recovery of the outstanding charges related to the recorded notice of decarbonization charge, to record a notice of the full cost recovery and removal of the decarbonization charge with the county recorder of the county where the property subject to the decarbonization charge is located. The bill also would require an energy supplier, within 30 days of a decision by the energy supplier to cease collection of the charge, to record a notice of removal of the decarbonization charge with the county recorder of the county where the property subject to the decarbonization charge is located. If the subscriber's property is not owner-occupied, the bill would require the energy supplier to incorporate in a written agreement between the energy supplier and the property owner related to installation of a decarbonization upgrade, a requirement that the property owner shall cause the obligation to pay the decarbonization charge to appear in the terms through which the property owner leases or licenses the property for occupancy. (3) Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order by the commission implementing the above provisions would be a crime, this bill would impose a state-mandated local program. 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 specified reasons.