Electrical rates: credits: hot climate zones.

The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to adopt regulations for greenhouse gas emissions limits and emissions reduction measures to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, as defined. The act authorizes the state board to revise regulations or adopt additional regulations to further the act. The act authorizes that state board to include in those regulations the use of a market-based compliance mechanism to comply with those regulations.

Existing law requires the PUC to require revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical corporations pursuant to the regulations that implement the market-based compliance mechanism to be credited directly to the residential customers of the electrical corporation, as provided.

This bill would require the PUC to determine, and to require an electrical corporation to provide, an additional credit to the residential customers of the electrical corporation in hot climate zones, including, but not limited to, specified building climate zones as determined by the State Energy Resources Conservation and Development Commission (Energy Commission), as provided. The bill would require the PUC to calculate the credit with the intent to mitigate the impact of tiered rates during extremely hot days, as defined.

Existing law requires a local publicly owned electric utility that receives a direct allocation of greenhouse gas allowances in addition to the greenhouse gas allowance totals specified in the regulations that implement the market-based compliance mechanism to provide a credit, as provided.

This bill would require the PUC to determine, and a local publicly owned electric utility to provide, an additional credit to ratepayers in hot climate zones, including, but not limited to, specified building climate zones as determined by the Energy Commission, as provided. By imposing additional duties on a local publicly owned electric utility, the bill would impose a state-mandated local program. The bill would require the PUC to calculate the credit with the intent to mitigate the impact of tiered rates during extremely hot days, as defined.

Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of a commission action implementing this bill's requirements would be a crime, the 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.