BILL ANALYSIS
SB 1790
Page 1
SENATE THIRD READING
SB 1790 (Bowen)
As Amended August 16, 2002
Majority vote
SENATE VOTE :24-12
UTILITIES AND COMMERCE 10-4 APPROPRIATIONS 16-7
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|Ayes:|Wright, Pescetti, |Ayes:|Steinberg, Alquist, |
| |Canciamilla, Diaz, | |Aroner, Cohn, Corbett, |
| |Horton, Kelley, Nation, | |Correa, Diaz, Firebaugh, |
| |Papan, Reyes, Simitian | |Goldberg, Negrete McLeod, |
| | | |Papan, Pavley, Simitian, |
| | | |Keeley, Wiggins, Wright |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bill Campbell, John |Nays:|Bates, Ashburn, Daucher, |
| |Campbell, | |Maldonado, Robert |
| |La Suer, Maddox | |Pacheco, Runner, Zettel |
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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.
SB 1790
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5)Adds legislative findings and declarations that
air-conditioning load constitutes 28% of the state's
electricity demand, the largest single component, and that
reducing its peak load by establishing load control programs
for residential and commercial air conditioning systems can
reduce peak electricity demand in a cost-effective manner.
EXISTING LAW :
1)Provides for regulation of electrical corporations by PUC.
2)Establishes the State Energy Conservation Assistance Account
(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.
FISCAL EFFECT : Assembly Appropriations notes minor absorbable
costs to PUC and CEC.
COMMENTS :
1)Air conditioning: It takes about 14,000 megawatts 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
(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
SB 1790
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California entities. A follow-up meeting will be held to
draft policy recommendations and action plans.
2)Energy Conservation Assistance Act: This bill contains a
number of CEC-sponsored amendments to its Account program.
A sampling of the amendments includes changes that:
a) Allow loan funds to be used to improve energy efficiency
of both existing and planned buildings;
b) Expand the loan program to cover not only owned by local
government, but also leased;
c) Broaden the technical assistance program to include new
construction design review activities;
d) 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; and,
e) Permit CEC to enter into loan agreements with the
Authority.
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083
FN: 0006564