Section 399.4 Of Article 15. Reliable Electric Service Investments Act From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 15.
399.4
. (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
(2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
(b) (1) Any rebates or incentives offered by a public utility for
an energy efficiency improvement or installation of energy efficient
components, equipment, or appliances in buildings shall be provided
only if the recipient of the rebate or incentive certifies that the
improvement or installation has complied with any applicable
permitting requirements and, if a contractor performed the
installation or improvement, that the contractor holds the
appropriate license for the work performed.
(2) This subdivision does not imply or create authority or
responsibility, or expand existing authority or responsibility, of a
public utility for the enforcement of the building energy and water
efficiency standards adopted pursuant to subdivision (a) or (b) of
Section 25402 of the Public Resources Code, or appliance efficiency
standards and certification requirements adopted pursuant to
subdivision (c) of Section 25402 of the Public Resources Code.
(c) The commission, in evaluating energy efficiency investments
under its existing statutory authority, shall also ensure that local
and regional interests, multifamily dwellings, and energy service
industry capabilities are incorporated into program portfolio design
and that local governments, community-based organizations, and energy
efficiency service providers are encouraged to participate in
program implementation where appropriate.
(d) The commission, in a new or existing proceeding, shall review
and update its policies governing energy efficiency programs funded
by utility customers to facilitate achieving the targets established
pursuant to subdivision (c) of Section 25310 of the Public Resources
Code. In updating its policies, the commission shall, at a minimum,
do all of the following:
(1) Authorize market transformation programs with appropriate
levels of funding to achieve deeper energy efficiency savings.
(2) Authorize pay for performance programs that link incentives
directly to measured energy savings. As part of pay for performance
programs authorized by the commission, customers should be reasonably
compensated for developing and implementing an energy efficiency
plan, with a portion of their incentive reserved pending post project
measurement results.
(3) Authorize programs to achieve deeper savings through
operational, behavioral, and retrocommissioning activities.
(4) Ensure that customers have certainty in the values and
methodology used to determine energy efficiency incentives by basing
the amount of any incentives provided by gas and electrical
corporations on the values and methodology contained in the executed
customer agreement. Incentive payments shall be based on measured
results.