Building decarbonization.

Existing law establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the Energy Commission to implement various energy efficiency programs. Existing law, except as provided, requires the Energy Commission to administer federal funds allocated to, and received by, the state for energy-related projects under certain federal laws. Existing law requires the Energy Commission to develop and implement the Electric Program Investment Charge (EPIC) program to award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state's statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges. This bill would require the Energy Commission to identify and implement programs to promote existing and new building decarbonization, as defined. The bill would, to the extent clean energy or energy efficiency funds are made available from the federal government to address economic recovery and development due to the COVID-19 pandemic, authorize the Energy Commission to expend federal moneys, to the extent authorized by federal law, for projects for existing and new building decarbonization. The bill would expressly require the Energy Commission, under the EPIC program, to award funds for projects for the development and deployment of commercial and residential building decarbonization technologies and investments that reduce or eliminate greenhouse gas generation in those buildings, as specified. Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the PUC to require each electrical corporation to identify a separate rate component to collect revenues to fund various programs, including, programs for cost-effective energy efficiency and conservation activities and programs to provide low-income electricity customers targeted energy-efficiency services. Existing law requires each local publicly owned electric utility to establish a nonbypassable, usage-based charge on distribution service, as specified, to fund various programs, including programs for cost-effective, demand-side management services and programs to provide energy efficiency services to low-income electricity customers. This bill would authorize the expenditure of those revenues for existing and new building decarbonization. To receive this funding, the bill would require the entity implementing the decarbonization project and its subcontractors at every tier to pay prevailing wage. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because certain provisions of this bill would be a part of the Public Utilities Act, a violation of which would be a crime, and because a violation of a PUC action implementing the bill's requirements 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 a specified reason.