BILL ANALYSIS
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THIRD READING
Bill No: AB 29X
Author: Kehoe (D), et al
Amended: 4/5/01 in Senate
Vote: 27 - Urgency
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 3/29/01
AYES: Bowen, Alarcon, Dunn, Sher, Speier, Vasconcellos,
Vincent
SENATE APPROPRIATIONS COMMITTEE : 7-1, 4/4/01
AYES: Alpert, Bowen, Burton, Karnette, McPherson, Perata,
Speier
NOES: Johnson
ASSEMBLY FLOOR : 69-8, 3/22/01 - See last page for vote
SUBJECT : Energy conservation
SOURCE : Author
DIGEST : This bill appropriates or reappropriates $408
million from specified funds for a variety of new programs
relating to energy conservation, efficiency, and
distributed generation.
Senate Floor Amendments of 4/5/01 delete the committee
amendments of April 4, 2001, which inserted provisions
relating to agricultural customers of energy.
ANALYSIS : Increased energy efficiency and conservation
are essential to help reduce the demand for electricity in
CONTINUED
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California, both this summer and in the future. SB 5X
(Sher), which is pending in the Assembly Appropriations
Committee, contains approximately $733 million of energy
efficiency initiatives. SB 28X (Sher) is a package of
generation initiatives, including limited waivers of
standby charges for customer-owned generation.
This bill creates a variety of new programs relating to
energy conservation, efficiency, and distributed
generation. There are three funding sources for the
programs in this bill: General Fund, Prop. 98 Reversion
Account, and Renewable Resources Trust Fund. $368.5
million, General Fund, and $15 million, Renewable Resources
Trust Fund, is to be allocated as follows:
1. $234.5 million for California Energy Commission (CEC)
programs as follows:
A. $50 million to establish a grant/loan program for
low-income persons and small businesses to
construct/retrofit buildings to be more energy
efficient.
B. $50 million for electric metering programs, $35
million of which is for time-of-use or real time
meters for 200 kw+ customers, and $15 million of
which is for the California Public Utilities
Commission (CPUC) to conduct a pilot program of real
time metering for nonresidential customers. Each
meter costs an estimated $2500. (Staff notes that the
costs of meters are currently passed on to users).
C. $50 million for the Small Business Energy
Efficient Refrigeration Loan Program.
D. $50 million to the State Energy Conservation
Assistance Account to augment an
existing program to provide loans and grants to local
governments for energy efficiency and conservation
programs.
E. $15 million, General Fund, and $15 million from
the Renewable Resource Trust Fund, to augment the
Emerging Renewable Resources Account to expand
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existing programs to promote distributed emerging
technologies, as specified. Of the $30 million, $22
million is to be used for rebates for systems under
10 kw in IOUs service areas, and $8 million is for
rebates for small systems in local publicly owned
utilities service areas.
F. $4.5 million to complete the Southeast Geysers
power plant pipeline project, owned by Lake County,
as specified.
2. $40 million for the Renewable Energy Loan Loss Reserve
Fund, hereby created, to guarantee loans for renewable
energy projects, as specified, to be administered by the
State Trade and Commerce Agency. Costs in outyears
depend on the program participation.
3. $40 million to the California Conservation Corps (CCC)
to purchase, distribute, and install subcompact
fluorescent lights and other energy-saving devices, and
water-saving devices in homes and businesses, as part of
the Mobile Efficiency Brigade. The brigade is
established, until January 1, 2003, to expand the State
Department of Community Services and Development (DCSD)
and CCC conservation programs, working with community
based organizations. The bill requires the CCC and DCSD
to expand their weatherization, energy-efficiency, and
rehabilitation programs. Costs in outyears are unknown.
4. $20 million to the DCSD for the program described in 3
above.
5. $25 million to the California Alternative Energy and
Advanced Transportation Financing Authority to provide
financial assistance to public power entities,
independent generators, and others for new and renewable
energy sources, and to develop clean distributed
generation. The bill also changes the existing program by
expanding eligibility.
6. $24 million to the State Department of Corrections to
install systems to retrofit generation units to improve
environmental performance.
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7.$25.15 million is reappropriated from Prop. 98 Reversion
Account as follows:
A. $25 million to community college districts to
implement energy projects.
B. $150,000 as a grant to the Community College
League of California to establish a statewide
database of community college district utility usage
for conservation planning. This is intended to be a
one-time appropriation.
The bill also directs the California Community College
Board of Governors to, in consultation with the California
Energy Commission (CEC), further develop guidelines for a
statewide energy management program with a goal of
completing 20 district energy management plans, 15
renewable energy systems, and 3 sustainable green buildings
on community college campuses statewide. The provisions
are subject to approval and appropriation in the annual
Budget Act or subject to receipt of local funding for this
purpose.
The bill requires the CPUC to ensure that errors in
estimates of demand electricity of sales do not result in
material over or under collections of the electrical
corporations.
The bill also (1) requires the State Department of General
Services (DGS) to identify and retrofit state buildings to
reduce energy consumption or produce its own electrical
generation. DGS staff indicate this provision codifies
current practice; therefore, any increased costs are minor,
absorbable; (2) until December 31, 2002, makes changes to
net metering provisions of existing law; and (3) contains
numerous public contracting provision exemptions, e.g.,
competitive bidding, until a specified date.
The bill limits administrative costs for participating
agencies and requires prescribed reports.
Related Legislation
SB 5x (Sher), pending in the Assembly, contains numerous
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energy conservation measures.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
Appropriates or reappropriates $408,650,000 in 2001-02.
Unknown costs in outyears. To the extent that the
conservation measures are effective in reducing demand,
there could be energy cost savings by summer 2001.
ASSEMBLY FLOOR
AYES: Alquist, Aroner, Bates, Briggs, Calderon,
Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dickerson, Dutra, Firebaugh, Florez, Frommer, Goldberg,
Harman, Havice, Horton, Jackson, Keeley, Kehoe, Kelley,
Koretz, La Suer, Leach, Leslie, Liu, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Migden, Mountjoy,
Nakano, Nation, Negrete McLeod, Oropeza, Robert Pacheco,
Rod Pacheco, Pavley, Pescetti, Reyes, Richman, Salinas,
Shelley, Simitian, Steinberg, Strickland, Strom-Martin,
Thomson, Vargas, Washington, Wayne, Wesson, Wiggins,
Wright, Wyland, Zettel, Hertzberg
NOES: Aanestad, Ashburn, Bill Campbell, John Campbell,
Hollingsworth, Leonard, Runner, Wyman
NC:kb 4/5/01 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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