BILL ANALYSIS
AB 29 X1
Page 1
(Without Reference to File)
ASSEMBLY THIRD READING
AB 29 X1 (Kehoe)
As Amended March 22, 2001
2/3 vote. Urgency
REVENUE & TAXATION 7-0 ENERGY 14-0
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|Ayes:|Corbett, Harman, Aroner, |Ayes:|Wright, Pescetti, |
| |Cedillo, Koretz, Thomson, | |Canciamilla, Dutra, |
| |Wyland | |Florez, Jackson, Keeley, |
| | | |Migden, Oropeza, Reyes, |
| | | |Steinberg, Vargas, |
| | | |Wesson, Zettel |
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APPROPRIATIONS 16-4
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|Ayes:|Migden, Alquist, Aroner, |
| |Cedillo, Keeley, Correa, |
| |Goldberg, Maldonado, |
| |Robert Pacheco, Papan, |
| |Shelley, Simitian, Reyes, |
| |Wesson, Wiggins, Zettel |
| | |
|-----+--------------------------|
|Nays:|Bates, Ashburn, Daucher, |
| |Runner |
| | |
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SUMMARY : Establishes new energy conservation programs and
augments an existing program under the direction of the
California Energy Commission (CEC), and provides a $200 million
appropriation for these purposes. Specifically, the bill :
1)Requires CEC to:
a) Pay the costs of installation of an interval meter to a
small business that voluntarily reduces electricity
consumption by not less than 10% for one year following the
date of installation of the meter;
b) Administer a grant program for replacement of energy
AB 29 X1
Page 2
inefficient appliances;
c) Administer a grant and loan program for eligible
construction retrofits, as prescribed; and,
d) Administer a small business energy efficient
refrigeration loan program.
1)Authorizes CEC to adopt emergency regulations.
EXISTING LAW requires CEC to perform specified duties relating
to the conservation and development of energy resources under
the Warren-Alquist State Energy Resources Conservation and
Development Act.
FISCAL EFFECT : Appropriates $200 million from the General Fund
to CEC.
COMMENTS : The Business Conservation Incentive Plan outlined in
this bill, includes a component to compel CEC to reimburse small
businesses for the cost of installation, up to $800 of an
interval meter, up to a cap of $25 million. Cost recovery is
contingent upon the customer voluntarily reducing electricity
usage by 10% for one year following the date of installation of
the meter, subject to verification by CEC. Interval meters
allow businesses to determine how much electricity they are
consuming, at fifteen-minute intervals. Currently large retail
businesses, such as Target Stores, and Federated Department
Stores, have installed interval meters in their retail outlets,
with no compensation incentives directing them to do so. The
meters allow the businesses to control consumption. SB 5 X1
(Keeley), pending in the Senate, also contains provisions
relating to funding of interval meters in its $70 million total
allocation for demand responsive programs.
Interval meters are both a demand control measure which benefits
overall electricity supply [estimated 40 megawatts (MW)
reduction in total], and a cost control measure for businesses,
large and small, to reduce costs by reducing consumption.
Especially where there is a prospect of tiered rate structuring,
interval meters allow electricity customers to identify their
usage during peak periods and to quantify their usage with
regard to baseline levels. This bill directs CEC to establish a
low-interest loan program for small businesses to install energy
AB 29 X1
Page 3
efficient refrigerator equipment.
This bill also proposes opening a $50 million grant program
administered by CEC to cover 50% of the cost of purchase (up to
specified limits) of an energy efficient appliance (i.e., room
air conditioners, central air conditioners, refrigerators) for
qualified low-income persons. Under this bill, CEC would be
required to work in cooperation with state agencies and
community-based organizations to open exchange centers. Staff
at the exchange centers are to assist in the pick up of old
appliances and certify to CEC that the energy inefficient model
was or will be destroyed in an environmentally sounds manner.
This bill also directs CEC to establish a grant and low-interest
loan program for low-income persons and residential property
owners and small businesses to retrofit existing buildings with
energy-savings improvements.
Analysis Prepared by : Kelly Boyd / E. C. & A. / (916)
319-2083
FN: 0000219