BILL ANALYSIS
SB 1790
Page 1
Date of Hearing: June 24, 2002
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
SB 1790 (Bowen) - As Amended: June 20, 2002
SENATE VOTE : 24-12
SUBJECT : Energy resources.
SUMMARY : Requires the California Public Utilities Commission
(PUC) to develop a program for residential and commercial
customer air conditioning load control. Specifically, this
bill :
1)Directs PUC to consult with the California Energy Commission
(CEC) and develop a program for residential and commercial
customer air-conditioning load control.
2)Specifies that the goal of the program is to contribute to the
adequacy of electricity supply and to help customers reduce
their electric bills in a cost-effective manner.
3)Provides that the program may include peak load reduction
programs for residential and small commercial air
conditioning, if PUC determines that the inclusion would be
cost-effective.
4)Enacts several non-substantive or at least non-controversial
changes to CEC's Energy Conservation Assistance Account loan
program.
EXISTING LAW :
1)Provides for regulation of electrical corporations by PUC.
2)Establishes the State Energy Conservation Assistance Account
to carry out the provisions of the Energy Conservation
Assistance Act of 1979.
3)Provides for grants and loans to local governments and public
institutions to maximize energy use savings through technical
assistance, demonstration projects, and energy efficiency
measures.
SB 1790
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FISCAL EFFECT : Unknown
COMMENTS :
Air conditioning
It takes about 14,000 MW to run air conditioners in the
California summertime. Some air conditioning load control
programs are currently in place. Southern California Edison
(SCE) has an existing air conditioning cycling program for
residential and small commercial customers. This program, like
other interruptible programs, was created to improve system
reliability, not to help reduce overall energy costs. San Diego
Gas & Electric Company (SDG&E) is conducting a pilot program
which utilizes Internet technology to adjust residential air
conditioning thermostats, and it hopes to have this program
fully operational by this summer. The California Power
Authority is contemplating a program to allow third parties to
aggregate air conditioning load and pay those aggregators to
reduce that load.
Recognizing the potential contribution of conservation and
demand reduction programs to electric system reliability and
cost reductions, CEC convened a workshop this March to begin
trying to coordinate demand response programs run by different
California entities.
A follow-up meeting will be held to draft policy recommendations
and action plans.
Energy Conservation Assistance Act
As amended June 20, this bill contains a number of CEC-sponsored
amendments to its Energy Conservation Assistance Account
program.
A sampling of the amendments includes changes that:
Allow loan funds to be used to improve energy efficiency of
both existing and planned buildings.
Expand the loan program to cover not only owned by local
government, but also leased.
Broaden the technical assistance program to include new
construction design review activities.
SB 1790
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Specify that a loan repayment period shall not exceed the life
of the equipment or the lease term of the building in which
these measures will be installed.
Permit CEC to enter into loan agreements with the California
Power Authority
REGISTERED SUPPORT / OPPOSITION :
Support
Office of Ratepayer Advocates
Southern California Edison (if amended)
Opposition
None on file
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083