SB 527

Bill Subjects

Abstract

Existing law requires the State Energy Resources Conservation and Development Commission to establish the Equitable Building Decarbonization Program, which includes establishing the direct install program to fund certain projects and remediation and safety measures to facilitate the installation of new technologies, and a statewide incentive program for low-carbon building technologies, as specified. This bill would, until January 1, 2030, require the Public Utilities Commission, in consultation with gas corporations, to develop and supervise the administration of the Neighborhood Decarbonization Program to facilitate the cost-effective decarbonization of targeted natural gas zones with the intent to provide benefits that include, but are not limited to, reduced emissions of greenhouse gases and air pollution, the maintenance of reliable, safe, and resilient energy service, and the maintenance of rate affordability for California gas customers, and with the intent to decommission gas assets in zones with the highest community burdens and those that would result in the highest projected ratepayer cost savings. The bill would require the commission, in consultation with each gas corporation, to adopt guidelines and regulations for the program, as specified. The bill would require the commission, in a new or existing proceeding, to develop the roles, responsibilities, timelines, and processes for determining whether gas service may be discontinued to one or more gas customers as a part of the program, as specified. The bill would limit the scope of the program to no more than 15 pilot projects across the state that affect no more than 1% of each gas corporation's customers. The bill would require the commission, beginning March 1, 2025, and by March 1 of each year thereafter, to submit to the relevant policy committees of the Legislature a progress report summarizing the findings of the program. The bill would require the commission, beginning January 1, 2029, to conduct a review of the efficacy of the program in providing benefits to gas customers and in assisting the state in meeting the state's climate change goals and would require the commission, on or before March 1, 2030, to submit to the relevant policy committees of the Legislature a report on the review. This bill would authorize a gas corporation to cease providing service in an area within its service territory where a pilot project authorized under the program has been implemented if the commission determines that adequate substitute energy service is reasonably available to support the energy end use of affected gas customers. The bill would require the commission to authorize a gas corporation to fully recover the undepreciated cost of a gas plant or asset if full cost recovery has not been achieved for the gas plant or asset that is decommissioned, as provided. The bill would require the commission, in determining what constitutes adequate substitute energy service and when the substitute energy service is reasonably available, to adopt guidelines necessary to ensure that the rates for substitution of service for low-income customers and renters are just and reasonable. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order or decision of the commission implementing the requirements of this bill would be a crime, the bill would impose a state-mandated local program by creating a new crime. 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.