AB 755

This bill allows the Public Service Commission (PSC) to authorize an electric,

natural gas, or water public utility (utility) to administer, fund, or provide

administrative services for a program for investing in energy efficiency

improvements and renewable resource applications at any type of premises served

by the utility. The bill defines "energy efficiency improvement" as an improvement

that reduces the usage of energy or increases the efficiency of energy usage at

premises, and the bill defines "renewable resource application" as the application of

specified renewable energy resources, such as, for example, solar or wind power, at

premises. The bill allows the PSC to authorize a program only upon application by

a utility and prohibits the PSC from requiring that utilities participate in such a

program. In addition, if the utility is an investor-owned electric or natural gas utility

(energy utility), the PSC may authorize a program only if the PSC finds the program

is cost-effective. The bill requires a utility for which the PSC authorizes a program

to file a tariff with the PSC that specifies the terms and conditions of utility and

nonutility service provided to customers at premises where energy efficiency

improvements or renewable resource applications are made under the program. A

tariff has no effect until approved by the PSC.

In addition, the bill specifies that premises are not eligible for an investment

under an authorized program unless an audit is performed that demonstrates that

an energy efficiency improvement or renewable resource application is

cost-effective, as specified in rules promulgated by the PSC. The rules may specify

criteria that include comparing the cost of an improvement or application to the

value of the premises. In addition, for an energy efficiency improvement, the rules

may specify criteria that include the energy savings resulting from the improvement

and the period of time required for the energy savings to equal the cost of the

improvement. In addition, the PSC must promulgate rules requiring the

performance of audit after an energy efficiency improvement or renewable resource

application is made or installed. The purpose of such a postaudit is to verify that the

improvement or application was made or installed. The bill requires the PSC to

promulgate rules specifying the certification requirements that a person must

satisfy to perform either type of audit.

The bill also requires that all work involved in making or installing an energy

efficiency improvement or renewable resource application under an authorized

program must be performed by a contractor or subcontractor that the PSC has

included on a prequalification list of approved contractors and subcontractors. The

PSC may include a contractor or subcontractor on the list only if the PSC determines

that the contractor or subcontractor satisfies certain requirements, including the

following: 1) agrees to comply with prevailing wage and substance abuse prevention

requirements that apply to certain public works projects; 2) certifies that employees

are not improperly classified as independent contractors in violation of federal or