BILL ANALYSIS                                                                                                                                                                                                                   1
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             SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            DEBRA BOWEN, CHAIRWOMAN
          

          AB 2944 -  Kehoe                                  Hearing  
          Date:  June 11, 2002                 A
          As Amended:         April 22, 2002           FISCAL       B

                                                                       
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                                   DESCRIPTION
           
           This bill  : 

          1.Establishes the San Diego Solar Streetlights Pilot  
            Program (SDSSPP).

          2.Requires "alternative energy companies," in consideration  
            of unspecified incentives devised by the City of San  
            Diego, to donate equipment to initiate the SDSSPP.

          3.Requires the California Energy Commission (CEC) to report  
            on the program by January 1, 2005.

          4.Sunsets January 1, 2006.

                                    BACKGROUND
           
          The CEC funds a wide variety of energy efficiency and  
          renewable energy projects.  These projects have been funded  
          through the public goods surcharge assessed on electricity  
          customers through utility distribution rates, and  
          supplemented by General Fund appropriations made by SB 5X  
          (Sher), Chapter 7, Statutes of 2001, and AB 29X (Kehoe),  
          Chapter 8, Statutes of 2001.

          The CEC  has not  funded solar-powered street lights,  











               although they may be eligible for funding under the  
               Emerging Renewable Account funded by the public goods  
               surcharge.  The CEC  has  funded the installation of  
               energy-efficient street lights, such as those using  
               light-emitting diodes, rather than incandescent or  
               fluorescent bulbs (not solar-powered).  In addition, SB 5X  
               required the CEC to adopt efficiency standards for outdoor  
               lighting, including street lights.  The project proposed by  
               this bill may also be eligible for public goods charge  
               funding through programs administered by San Diego Gas &  
               Electric.

                                          COMMENTS
                
                1.Controversial declaration.   In the findings section, this  
                 bill makes the declaration that "(i)t is in the best  
                 interests of the people of this state to reduce our  
                 reliance upon electrical corporations?" (page 2, line 6).  
                  This statement doesn't appear to further the purpose of  
                 the bill and may not well reflect the sentiment of the  
                 Legislature, particularly if its implication is that  
                 California should then increase its reliance on  
                 unregulated providers of electricity.   The author and the  
                 committee may wish to consider  striking "upon electrical  
                 corporations and" on page 2, line 6.

                2.CEC reporting obligation.   While the bill doesn't require  
                 any involvement in the SDSSPP by the CEC, it does require  
                 the CEC to report on its costs, benefits, results and  
                 implications for statewide implementation.  It's not  
                 clear, if the CEC isn't a participant in the SDSSPP, how  
                 it would be in a position to do the required analysis.   
                  The author and the committee may wish to consider   
                 removing the report, or making it the obligation of the  
                 City and its partners, rather than the CEC.  
                
                                      ASSEMBLY VOTES
                
               Assembly Floor                     (72-0)
               Assembly Appropriations Committee  (22-0)
               Assembly Natural Resources Committee(11-0)
               Assembly Utilities and Commerce Committee(14-0)

                                         POSITIONS










           
           Sponsor:
           
          Author

           Support:
           
          California Municipal Utilities Association
          City of San Diego
          Utility Consumers' Action Network

           Oppose:
           
          None on file






          


          Lawrence Lingbloom 
          AB 2944 Analysis
          Hearing Date:  June 11, 2002