Energy efficiency funds on the agenda for manufacturers

By Michael Shaw

Capitol Update, March 30, 2018 Share this on FacebookTweet thisEmail this to a friend

California ratepayers collectively fund utility energy efficiency programs through electricity rates that include a set aside to help offset the cost of improvements. Those energy efficiency funds are restricted by rate class meaning that industrial rates subsidize industrial programs. 
 
However, a nebulous phrase called the “industry standard practice” requirement translates to an ever-moving target that results in the rejection of some projects that would have benefited California’s energy efficiency goals.
 
In one recent case, the California Public Utilities Commission (CPUC) Energy Division rejected a project by a California cement company that would result in significant energy efficiency savings at their facility because it was determined that the project would not exceed the industry standard practice requirement. 
 
There is a fix.
 
California Manufacturers & Technology Association (CMTA) SUPPORTS SB 1131 by Senator Bob Hertzberg that promotes energy efficiency at large industrial facilities by increasing access to existing industrial ratepayer energy efficiency funds. This bill requires the CPUC to clarify eligibility criteria for industrial and agricultural facilities seeking to participate in energy efficiency programs. 
 
SB 1131 addresses critical issues that plague access to the industrial energy efficiency 
funds and creates more opportunity to increase the efficiency of the sector that represents one-third to half of energy usage across California’s utility territories.
 
For more information, please contact Michael Shaw, VP Government Relations, at mshaw@cmta.net or (916) 498-3328. Click here for CMTA’s SB 1131 letter.
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