BILL NUMBER: SBX1 5	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Sher and Burton

                        JANUARY 17, 2001

   An act relating to public utilities, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 5, as introduced, Sher.  Public utilities.
   Existing law provides for the establishment and implementation of
various energy efficiency programs administered by the State Energy
Resources Conservation and Development Commission and the Public
Utilities Commission.
   This bill would appropriate $934,010,000 from the General Fund to
implement energy efficiency programs and supplement existing energy
efficiency programs. Of that amount, $248,010,000 would be allocated
to the State Energy Resources Conservation and Development Commission
and $686,000,000 would be allocated to the Public Utilities
Commission to fund various energy efficiency programs, as scheduled.

   The bill would declare that it is to take effect immediately as an
urgency statute.
   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.  The Legislature finds and declares as follows:
   (a)  California is currently experiencing an energy crisis which
threatens to adversely affect the economic and environmental
well-being of the state.
   (b) One of the most cost-effective, efficient, and environmentally
beneficial methods of meeting the state's energy needs is to
encourage the efficient use of energy.
   (c) The purpose of the act adding this section is to ensure the
immediate implementation of energy efficiency programs in order to
reduce consumption of energy and to assist in reducing the costs
associated with energy demand.
  SEC. 2.  The sum of nine hundred thirty four million ten thousand
dollars ($934,010,000) is hereby appropriated from the General Fund
to the Controller for allocation according to the following schedule:

   (a) Two hundred forty eight million ten thousand dollars
($248,010,000) to the State Energy Resources Conservation and
Development Commission, to be allocated for the following purposes:
   (1) Twenty million dollars ($20,000,000) to implement the programs
established pursuant to Section 25555 of the Public Resources Code
in order to achieve a minimum of an additional 57 megawatts reduction
in peak electricity demand.
   (2) Forty million dollars ($40,000,000) to implement a distributed
generation incentives program to achieve a 75 megawatt reduction in
peak electricity demand.
   (3) Ten million dollars ($10,000,000) to implement a demand
reduction program for small commercial sector electricity customers
to achieve a forty megawatt reduction in peak electricity demand.
For the purposes of this paragraph, "small commercial sector
electricity customer" means a commercial electric utility customer
that uses less than 20 kilowatts.
   (4) Ten million dollars ($10,000,000) to implement an agriculture
and irrigation district demand reduction program to achieve a 50
megawatt reduction in peak electricity demand through actions such as
the replacement of inefficient irrigation pumps and the shifting of
electricity consumption activities to off-peak hours.
   (5) Thirteen million dollars ($13,000,000) to achieve a 60
megawatt reduction in peak electricity demand through the
implementation of programs to improve demand responsiveness in
heating, ventilation, air conditioning, and lighting, and through
advanced metering of energy usage.  Funds appropriated pursuant to
this paragraph may be used to implement paragraphs (1) and (2) of
subdivision (a) of Section 25555 of the Public Resources Code.
   (6) Fifty million dollars ($50,000,000) to achieve a 150 megawatt
reduction in peak electricity demand through the implementation of a
low-energy usage building materials program in schools, colleges and
universities, and other nonresidential buildings.
   (7) Ten million dollars ($10,000,000) to achieve an additional 10
megawatts reduction in peak electricity demand through additional
implementation of subparagraph (E) of paragraph (2) of subdivision
(a) of Section 25555 of the Public Resources Code.
   (8) Fifty million dollars ($50,000,000) to achieve a 120 megawatt
reduction in peak electricity demand through the implementation of an
incentive program for water and waste water peak usage reduction.
   (9) Three million dollars ($3,000,000) to achieve a 15 megawatt
reduction in peak electricity demand through the implementation of a
load management program in state buildings and facilities.
   (10) Forty million dollars ($40,000,000) to achieve a 100 megawatt
reduction in peak electricity demand through innovative programs and
proposals ineligible for funding pursuant to Section 25555 of the
Public Resources Code.
   (11) One million four hundred thousand dollars ($1,400,000) to
fund 16 personnel years in the State Energy Resources Conservation
and Development Commission to implement subdivision (a) of this
section.
   (12) Six hundred and ten thousand dollars ($610,000) for four
personnel years to improve the ability of the State Energy Resources
Conservation and Development Commission to provide timely and
accurate assessments of electricity and natural gas markets.
   (b) Six hundred eighty six million dollars ($686,000,000) to the
Public Utilities Commission to be allocated for the following
purposes:
   (1) Sixty million dollars ($60,000,000) to increase and extend
CARE discounts to low-income persons not currently eligible for the
CARE program.
   (2) Sixty million dollars ($60,000,000) to augment funding for
low-income weatherization programs to assist in reducing energy costs
to low-income persons.
   (3) Fifty million dollars ($50,000,000) to achieve a 125 megawatt
reduction in peak electricity demand through a program which
encourages the purchase of high-efficiency air conditioning equipment
in residential homes.
   (4) Twenty five million dollars ($25,000,000) to achieve a 60
megawatt reduction in peak electricity demand through incentives to
stock and purchase high efficiency appliances.
   (5) Ten million dollars ($10,000,000) to achieve a 30 megawatt
reduction in peak electricity demand through incentives to better
size water and waste water pumps.
   (6) Eight million dollars ($8,000,000) to achieve a 40 megawatt
reduction in peak electricity demand through the provision of
incentives to residential homeowners to install whole-house fans.
   (7) Fifteen million dollars ($15,000,000) to achieve a 20 megawatt
reduction in peak electricity demand through a program to provide
education to commercial building managers on measures to reduce load
during periods of peak demand.
   (8) Ten million dollars ($10,000,000) to achieve a five megawatt
reduction in peak electricity demand through thermal energy storage
in the business and commercial sector.
   (9) Twenty million dollars ($20,000,000) to achieve a peak demand
reduction of 20 megawatts through high-efficiency pumping projects
with large motor and pump loads.
   (10) Twenty eight million dollars ($28,000,000) to achieve a 40
megawatt peak electricity demand reduction through the installation
of connected thermostats for heating, ventilation, and air
conditioning control in the commercial sector.
   (11) Forty million dollars ($40,000,000) to achieve an 11 megawatt
peak electricity demand reduction through the provision of
incentives to residential and small business customers for small
renewable systems incentives by financing up to 45 percent of the
installed cost of primarily solar small distributed generation
systems.
   (12) Sixty million dollars ($60,000,000) to achieve a 16.8
megawatt peak electricity demand reduction through the provision of
incentives for new and emerging distributed generation technologies
such as microturbines and fuel cells, as well as higher incentives
for renewable and clean technologies (PVs, wind) and incentives for
cogeneration, by paying up to a maximum of 50 percent of installed
cost of renewable systems or 30 percent of nonrenewable systems.
   (13) Eighty million dollars ($80,000,000) to achieve a 11.2
megawatt peak electricity demand reduction through acceleration of
self-generation for state and municipal buildings through expansion
of existing programs to add capacity by installing environmentally
friendly self generation systems for state and municipal buildings.
   (14) Twenty five million dollars ($25,000,000) to achieve a 83.3
megawatt peak electricity demand reduction through the provision of
incentives to builders to sell high performance homes that exceed
building efficiency standards by at least 30 percent.
   (15) Thirty million dollars ($30,000,000) to achieve a 100
megawatt peak electricity demand reduction through augmentation of
existing CEC initiatives to include installation of demand responsive
technologies, as well as energy efficient retrofits or municipal
buildings.
   (16) Fifteen million dollars ($15,000,000) to achieve a 37.5
megawatt peak electricity demand reduction through encouraging the
manufacture of more efficient mobile housing stock.
   (17) Thirty million ($30,000,000) to achieve a 100 megawatt peak
electricity demand reduction through offering energy efficient design
assistance at the point of permitting for construction and
remodeling.
   (18) Sixty million dollars ($60,000,000) to achieve a six megawatt
peak electricity demand reduction through augmentation of
weatherization programs for low-income utility customers.
   (19) Sixty million ($60,000,000) to extend the CARE discount to
consumers whose income is below 200 percent of the federal poverty
line and to increase the discount from 15 percent to 25 percent of
the utility bill.
   (c) This section shall remain in effect only until January 1,
2005, and as of that date is repealed unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that
date.  Any funds appropriated pursuant to this section which are
unencumbered or unexpended by January 1, 2005, shall revert to the
General Fund on that date.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   Due to the shortage of electric generation capacity to meet the
needs of the people of this state and in order to limit further
impacts of this shortage on the public health, safety, and welfare,
it is necessary that this act take effect immediately.