BILL NUMBER: AB 549	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 5, 2001

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
  Sections 25402.6 and 25402.7 to the Public Resources
Code  , relating to energy resources, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 549, as amended, 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 buildings.  The bill would
require the commission to report its findings, on or before 
April 1, 2002   January 1, 2003  , to the
Legislature.  
   The bill would require the commission to certify energy
consultants, installers, field verifiers, and nonresidential building
standards agents, as it determines appropriate, to ensure compliance
with all applicable building energy efficiency standards. 

   This bill would require electric and gas utilities to provide
support for building standards in consultation with the State Energy
Resources Conservation and Development Commission. 
   (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.
   (3)  The bill would appropriate $500,000 from the General
Fund to the commission, to be expended for the purposes of the
compliance monitoring required by the bill.
   Vote:  2/3.  Appropriation:  yes.  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, upon the receipt of a
complaint by a local building official, monitor compliance with the
building energy efficiency standards by checking compliance
documentation with actual construction in the field.
   (b)  
   25402.6.   The commission shall investigate options and
develop a plan to decrease wasteful load energy consumption in
existing residential and nonresidential buildings.  On or before
 April 1, 2002   January 1, 2003  , 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  buildings.  
   (c) The commission shall certify energy consultants, installers,
field verifiers, and nonresidential building standards agents, as it
determines appropriate, to ensure compliance with all applicable
building energy efficiency standards.  To the extent feasible, the
commission shall approve private organizations to conduct the
certification program required by this subdivision.  The
certification program shall also include a complaint response
process.
  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 of, 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.   
  SEC. 2.  Section 25402.7 is added to the Public Resources Code, to
read:
   25402.7.  In consultation with the State Energy Resources
Conservation and Development Commission, electric and gas utilities
shall provide support for building standards and other regulations
pursuant to Section 25402 and subdivision (b) of Section 25553
including appropriate research, development, and training to
implement those standards and other regulations. 
  SEC. 3.  The sum of five hundred thousand dollars ($500,000) is
hereby appropriated from the General Fund to the State Energy
Resources Conservation and Development Commission, to be expended for
the purposes of Section 25402.6 of the Public Resources Code.