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

          SB 84XX -  Burton                                 Hearing Date:   
          July 10, 2001              S
          As proposed to be amended                    FISCAL/URGENCY       
           B
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                                      DESCRIPTION
           
           Current law  provides funding to the California Energy Commission  
          (CEC) to award loans and grants to local governments to help  
          them replace traditional incandescent traffic signals with  
          signals lighted by light-emitting diodes (LED).

           This bill  provides $10 million from the General Fund to the CEC  
          to fund a matching grant program for a battery backup power  
          source for LED traffic signals.  The grant program will be  
          administered by the CEC, in consultation with local governments,  
          and will provide 70% of the cost of a battery backup system.

           This bill  requires the CEC to develop or adopt technical  
          criteria for installation of the battery backup systems.

                                      BACKGROUND
           
          LED traffic signals reduce energy consumption by 90% compared to  
          incandescent traffic signals.  Cities from San Diego to Eureka  
          have obtained grants from the CEC's current pot of $10 million  
          to install these signals, and they estimate they'll save $4.5  
          million each year in energy costs and and reduce peak demand by  
          5.9 megawatts (MW).  That grant money, authorized in AB 970  
          (Ducheny), Chapter 329, Statutes of 1999, has been exhausted.   
          Additional funding for LED traffic signal loans was provided in  
          AB 29X (Kehoe), Chapter 8, Statutes of 2001.

          While LED traffic signals are energy efficient, they still  
          require electricity, so when blackouts occur, LED traffic  











          signals fail the same way incandescent traffic signals fail.   
          However, because LED traffic signals are far more energy  
          efficient, relatively small battery backup power devices can be  
          used.  The City of Walnut Creek is planning to spend $230,000 to  
          provide battery backup to 28 LED traffic signals along major  
          streets, while City of Laguna Niguel has done the same for its  
          intersections.  Local governments believe battery backup systems  
          will enhance public safety by keeping traffic signals  
          functioning during blackouts.

          Current law allows the CEC to provide grants or loans for the  
          purposes of energy efficiency.  The battery backup program  
          envisioned in this bill isn't an energy efficiency program, it's  
          a public safety program that the CEC isn't currently authorized  
          to undertake.

                                       COMMENTS
           
           1)Cue Up The Energizer Bunny  .  According to information provided  
            by the author, battery backup for LED traffic signals costs  
            about $5,000 per intersection.  Using the 70/30 matching  
            criteria in the bill, the $10 million appropriated by this  
            measure should result allow about 2,800 intersections to have  
            battery backup devices installed in them.  This is about 9% of  
            the LED traffic signal controlled intersections that are  
            projected to be in place by 2002.

           2)LED Backups Only  .  The money set aside by this bill is only  
            available to provide backup batteries to LED traffic signals,  
            not traditional incandescent traffic signals.  That  
            restriction is due to the fact that because incandescent  
            signals use as much as ten times more electricity as LED  
            traffic signals, the batteries necessary to power those  
            signals are probably both cost and operationally prohibitive  
            to install.

           3)Where Does The Money Go First?   The bill requires the CEC to  
            develop a priority schedule for installation of battery backup  
            power based on specified factors including traffic volume, the  
            number of accidents, and the presence of children.  

            While the CEC has considerable expertise in energy efficiency,  
            it probably doesn't have the same level of expertise when it  
            comes to traffic safety.  As such,  the author and committee  










            may wish to consider  having the CEC consult with an  
            appropriate state agency that has the necessary expertise, or  
            alternatively, provide the money on a first-come, first-served  
            basis.

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          California State Association of Counties
          City of Torrance
          League of California Cities
          Sacramento County Board of Supervisors

           Oppose:
           
          None of file

          



          Randy Chinn 
          SB 84XX Analysis
          Hearing Date:  July 10, 2001