Bill Allowing Unlimited Direct Access Advances

Legislation lifting the cap on the ability of large businesses and industries to be served by non-utility energy service providers passed out of the Assembly Utilities & Energy Committee June 27 despite significant opposition, including from the panel chair.

SB 237 by Bob Hertzberg (D-Los Angeles), which would remove limits on direct access, was approved largely because of the surprising backing of the utility employees’ union.

Scott Wetch, representing the Coalition of California Utility Employees, acknowledged the shock by other stakeholders at his group’s support for removing restrictions on direct access, as it would mean less business for investor-owned utilities. CUE’s change of heart was because opening up direct access would undermine community energy, which is shrinking private utility turf.

California allows “fake competition” with the establishment of community choice aggregation, Wetch claimed. “If you’re going to do competition, let’s open it up and allow true completion.”

Direct access for large energy users is currently limited to 13 percent of the retail customer load, with 41,975 direct access customers.

Matt Friedman, The Utility Reform Network senior attorney, opposed uncapping direct access for large energy users because of the state of flux in the energy world.

“I don’t think it is appropriate to have unlimited direct access with so many unanswered questions at the Legislature and regulatory agencies” about energy policy and practice, he told the committee.

Assemblymember Bill Quirk (D-Hayward) raised concerns about the impacts of unfettered direct access, including that it would make more utility assets unrecoverable, that is, stranded.

Hertzberg rejected opponents’ arguments, labeling them “the sky is falling” claims. He insisted that California’s energy world has significantly changed since the 2000-01 energy crisis with the growth of sophisticated technologies and safety nets.

“The opportunities are so high and cost savings so great,” said the Los Angeles Democrat of direct access. He added, “We have won the war on sustainability and how customers buy power.”

SB 237 was sent on to the Assembly Appropriations Committee.

Another bill that had an uphill struggle to pass panel was SB 64 by Sen. Bob Wieckowski (D-Fremont.)

SB 64 would require air pollution control districts to make publicly available comprehensible information on hourly emission levels produced by fossil-fueled plants that ramp up to make up for the fall of intermittent renewable flows.

“The bill is intended to enhance our understanding of the more frequent increase of plant cycling and the potential negative impacts on air quality,” said Laura Wisland of the Union of Concerned Scientists.

Wieckowski said power plants that cycle on and off produce 38 times more pollution than baseload plants. He also warned that a power plant firing on and off can harm communities where the plant is located.

The bill passed on a 10-5 vote after Wieckowski agreed to work with local air districts on data access.

A watered down bill by Sen. Nancy Skinner (D-Berkeley), which was approved, would allow building owners to access energy use data to help them make informed decisions about energy efficiency retrofits.

Her SB 782 seeks to clean up a two-year old statute on access to whole building energy usage data for multi-family dwellings.

Two years ago, AB 802 directed the California Energy Commission to create a statewide building energy use benchmarking program for buildings larger than 50,000 square feet.

SB 782 was opposed by the California Municipal Utilities Association and Sacramento Municipal Utility District on claims it would add another layer on to the complex AB 802 process.

The committee also a bill to increase the installations of microgrids to ensure reliability and access to power after wildfires and other disasters.

“We need a more resiliency and microgrids are an important piece of that puzzle,” said Sen. Henry Stern (D-Canoga Park), author of SB 1339.

The measure was opposed by Pacific Gas & Electric and San Diego Gas & Electric because it could impose costs on non-benefiting ratepayers.

Another Stern bill that passed was SB 1347.It would provide incentives to add 2,000 MW of energy storage, funded by a non-bypassable charge on utility customers.

Stern removed a provision extending the bill’s mandate to community aggregators because of their objections it would infringe on their power procurement authority.

Assemblymember Quirk objected. “We can’t get economies of scale unless we have CCAs buy in” on energy storage, he said.

SB 1347 was supported by solar and clean air advocates.

The investor-owned utilities, The Utility Reform Network and Independent Energy Producers opposed the measure.

Also approved was SB 1477 by Stern. It seeks to promote electrification of new buildings, particularly with the installation of low emission space and water heating equipment, including electric heat pumps.

It would provide up to $50 million a year from 2019 to 2023, with 30 percent earmarked for struggling communities. Funds would come from the current climate dividend for utility gas customers.

Stern said he would consider other funding pots in response to objections raised by utilities.

SB 1477 would improve the health of people in disadvantaged communities, provide equitable deployment of emerging technologies and advance green sector job training and employment, said Ivan Jimenez, Brightline Defense attorney.

Other bills making the cut this week in the Utilities & Energy Committee included: SB 1090 by Sen. Bill Monning (D-San Luis Obispo). It would provide $85 million in community mitigation funding for the central coast community that is home to Pacific Gas & Electric’s Diablo nuclear plant, which is slated for closure. It also would fully fund PG&E’s employee retention fund. Lastly, it would require state energy regulators to ensure replacement power after the plan it closed that’s greenhouse gas emissions free. SB 1131 by Hertzberg. It seeks to increase energy efficiency in the industrial, agricultural and public sectors by making transparent the California Public Utilities Commission’s process for reviewing efficiency savings of large energy consumers. The bill sponsor, California Efficiency + Demand Management Council, said “60 percent of the energy efficiency potential in the state is locked in a black box at the CPUC.” SB 1135 by Sen. Steven Bradford (D-Gardena). It would codify a rate assistance program for low-income customers and raise the rate discount from 12 percent to 18 percent. — Elizabeth McCarthy

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Bill Allowing Unlimited Direct Access Advances

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