Legislators back AB 2182 to accelerate industrial energy-efficiency projects at CPUC

Assemblymember (author) accepted committee amendments and told the subcommittee AB 2182 is designed to speed industrial energy-efficiency upgrades by removing an extra review layer that has blocked projects and by ensuring only industrial customers fund the industrial program. "AB 2182 will reform the industrial energy efficiency program to move more quickly and effectively to support... upgrades to industrial facilities in California," the author said.

Dylan Finley and Audra Hartman of the California Large Energy Consumers Association and CLICA testified in support, saying the existing CPUC review process denies viable projects because of an ‘‘impossible industry standard’’ and that program funds should not be subsidized by other customer classes. Finley said the bill keeps the program at the CPUC but adds guardrails to prevent cost-shifting. Senator Richardson and others praised the author for specifying that the funds be industry-funded and suggested that the author consider guidance about per-project caps to avoid a small number of facilities capturing most of the pot.

Committee members asked technical questions about matching funds, the prior "use-it-or-lose-it" provision that was removed in amendments, and whether agriculture and food-processing boiler conversions are included. The bill's technical witness confirmed agriculture is eligible and that carbon capture had been removed from the bill in light of concerns. The author and sponsors agreed to discuss suggested CPUC guidance for distribution of funds. The committee took the bill up for motion and it was placed on call pending quorum arrangements for final votes.