BILL NUMBER: AB 549	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Longville

                        FEBRUARY 21, 2001

   An act to add Section 25402.6 to the Public Resources Code, and to
amend Section 399.15 of the Public Utilities Code, relating to
energy resources.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 549, as introduced, Longville.  California Energy Commission:
building efficiency standards.
   (1) Existing law requires the State Energy Resources Conservation
and Development Commission to prescribe, by regulation, various
energy efficiency design standards for residential and nonresidential
buildings.
   This bill would require the commission to monitor compliance with
building energy efficiency standards by checking compliance
documentation with actual construction in the field.
   This bill would require the commission to investigate options and
develop a plan to decrease wasteful peak load energy consumption in
existing residential and nonresidential construction.  The bill would
require the commission to report its findings, on or before January
1, 2002, to the Legislature.
   (2) Existing law requires the Public Utilities Commission, in
consultation with the Independent System Operator, to consult with
the State Energy Resources Conservation and Development Commission
and adopt energy conservation initiatives to reduce demand for
electricity and reduce load during peak demand periods.
   This bill would add, as another initiative, support for building
standards and other cost-effective energy efficiency regulations and
support for development of the infrastructure to implement those
standards and other regulations.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25402.6 is added to the Public Resources Code,
to read:
   25402.6.  (a) In conjunction with the existing activities of local
building departments, the commission shall, as it determines
appropriate, monitor compliance with the building energy efficiency
standards by checking compliance documentation with actual
construction in the field.
   (b) The commission shall investigate options and develop a plan to
decrease wasteful load energy consumption in existing residential
and nonresidential construction.  On or before January 1, 2002, the
commission shall report its findings to the Legislature, including,
but not limited to, any changes in law necessary to implement the
plan to decrease wasteful peak load energy consumption in existing
residential and nonresidential construction.
  SEC. 2.  Section 399.15 of the Public Utilities Code is amended to
read:
   399.15.  Notwithstanding any other provision of law, within 180
days of the effective date of this section, the commission, in
consultation with the Independent System Operator, shall take all of
the following actions, and shall include the reasonable costs
involved in taking those actions in the distribution revenue
requirements of utilities regulated by the commission, as
appropriate:
   (a) (1) Identify and undertake those actions necessary to reduce
or remove constraints on the state's existing electrical transmission
and distribution system, including, but not limited to,
reconductoring of transmission lines, the addition of capacitors to
increase voltage, the reinforcement of existing transmission
capacity, and the installation of new transformer banks.  The
commission shall, in consultation with the Independent System
Operator, give first priority to those geographical regions where
congestion reduces or impedes electrical transmission and supply.
   (2) Consistent with the existing statutory authority of the
commission, the commission shall afford electrical corporations a
reasonable opportunity to fully recover costs it determines are
reasonable and prudent to plan, finance, construct, operate, and
maintain any facilities under its jurisdiction required by this
section.
   (b) In consultation with the State Energy Resources Conservation
and Development Commission, adopt energy conservation demand-side
management and other initiatives in order to reduce demand for
electricity and reduce load during peak demand periods.  Those
initiatives shall include, but not be limited to, all of the
following:
   (1) Expansion and acceleration of residential and commercial
weatherization programs.
   (2) Expansion and acceleration of programs to inspect and improve
the operating efficiency of heating, ventilation, and
air-conditioning equipment in new and existing buildings, to ensure
that these systems achieve the maximum feasible cost-effective energy
efficiency.
   (3) Expansion and acceleration of programs to improve energy
efficiency in new buildings, in order to achieve the maximum feasible
reductions in uneconomic energy and peak electricity consumption.
   (4) Incentives to equip commercial buildings with the capacity to
automatically shut down or dim nonessential lighting and
incrementally raise thermostats during peak electricity demand
period.
   (5) Evaluation of installing local infrastructure to link
temperature setback thermostats to real-time price signals.
   (6) Incentives for load control and distributed generation to be
paid for enhancing reliability.
   (7) Differential incentives for renewable or super clean
distributed generation resources.
   (8) Reevaluation of all efficiency cost-effectiveness tests in
light of increases in wholesale electricity costs and of natural gas
costs to explicitly include the system value of reduced load on
reducing market clearing prices and volatility. 
   (9) Support for building standards and other regulations pursuant
to Section 25402 and subdivision (b) of Section 25553 of the Public
Resources Code and for development of the infrastructure to implement
those standards and other regulations. 
   (c) In consultation with the Energy Resources Conservation and
Development Commission, adopt and implement a residential,
commercial, and industrial peak reduction program that encourages
electric customers to reduce electricity consumption during peak
power periods.