Public Interest Energy Research Grants (PIER)

Summary

Signed into law in 1996, Assembly Bill 1890 provided authority for a fundamental restructuring of California’s electric services industry. Among other things, AB 1890 requires that at least $62.5 million be collected annually from investor - owned utility ratepayers for "public interest" energy RD&D efforts not adequately provided by competitive and regulated markets. The California Energy Commission was given legislative authority to administer the funding of specific RD&D projects. Senate Bill 90 was enacted into law in 1997, and it established administrative and funding criteria for the Public Interest Energy Research (PIER) Program. The legislation required that the program portfolio focus on projects in five subject areas: Renewable energy technologies; Environmentally preferred advanced generation; Energy-related environmental research; Strategic energy research; and End-use efficiency. The Energy Commission added a sixth program area when it divided end-use efficiency into (a) buildings and (b) industrial/agriculture/water. In October 2000, Governor Gray Davis signed into law AB 995, which extended funding for PIER through 2012 at the same annual funding level.