BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1790|
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UNFINISHED BUSINESS
Bill No: SB 1790
Author: Bowen (D)
Amended: 8/16/02
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 6-2, 4/23/02
AYES: Bowen, Alarcon, Sher, Speier, Vasconcellos, Vincent
NOES: Morrow, Battin
SENATE APPROPRIATIONS COMMITTEE : 9-2, 5/13/02
AYES: Alpert, Bowen, Burton, Escutia, Karnette, McPherson,
Murray, Perata, Speier
NOES: Battin, Poochigian
SENATE FLOOR : 24-12, 5/28/02
AYES: Alpert, Bowen, Burton, Chesbro, Costa, Dunn,
Escutia, Figueroa, Karnette, Kuehl, Machado, McPherson,
Murray, O'Connell, Ortiz, Perata, Polanco, Romero, Scott,
Sher, Soto, Speier, Torlakson, Vasconcellos
NOES: Ackerman, Battin, Brulte, Haynes, Johannessen,
Knight, Margett, McClintock, Monteith, Morrow, Oller,
Poochigian
ASSEMBLY FLOOR : 53-25, 8/20/02 - See last page for vote
SUBJECT : Energy resources
SOURCE : Author
DIGEST : This bill requires the State Public Utilities
Commission to develop a program for residential and
CONTINUED
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commercial customer air conditioning load control. The
bill also makes several technical and non-controversial
changes to the California Energy Commission's Energy
Conservation Assistance Programs.
Assembly Amendments (a) clarify that the program for air
conditioning load control shall be developed as an element
of each corporation's teriffed service offerings paid for
the electric rates, and (b) add several non-substantive,
non-controversial changes to the CEC's Energy Conservation
Assistance Account loan program
ANALYSIS : Current law requires public utilities to
provide adequate and efficient service.
Current regulations establish a number of programs to help
customers reduce their electric usage.
Existing law establishes the State Energy Conservation
Assistance Account (Account) to carry out the provisions of
the Energy Conservation Assistance Act of 1979.
This bill requires the State Public Utilities Commission
(PUC) to develop, in consultation with the California
Energy (CEC), 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
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non-controversial changes to CEC's Energy Conservation
Assistance Account loan program.
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.
Comments :
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 California entities. A follow-up meeting will be
held to draft policy recommendations and action plans.
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:
1. Allow loan funds to be used to improve energy efficiency
of both existing and planned buildings;
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2. Expand the loan program to cover not only owned by local
government, but also leased;
3. Broaden the technical assistance program to include new
construction design review activities;
4. 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,
5. Permit CEC to enter into loan agreements with the
Authority.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Minor, absorbable costs to the PUC and the CEC.
SUPPORT : (Verified 5/14/02) (Unable to re-verify at time
of writing)
Sierra Club
Office of Ratepayer Advocates
Southern California Edison
ASSEMBLY FLOOR :
AYES: Alquist, Aroner, Bogh, Calderon, Canciamilla,
Cardenas, Cardoza, Chan, Chavez, Chu, Cohn, Corbett,
Correa, Diaz, Dickerson, Dutra, Firebaugh, Florez,
Frommer, Goldberg, Hertzberg, Horton, Jackson, Keeley,
Kehoe, Kelley, Koretz, Liu, Longville, Lowenthal,
Maldonado, Matthews, Migden, Nakano, Nation, Negrete
McLeod, Oropeza, Papan, Pavley, Pescetti, Reyes, Salinas,
Shelley, Simitian, Steinberg, Strom-Martin, Thomson,
Vargas, Washington, Wayne, Wiggins, Wright, Wesson
NOES: Aanestad, Ashburn, Bates, Briggs, Bill Campbell,
John Campbell, Cogdill, Cox, Daucher, Harman,
Hollingsworth, La Suer, Leach, Leonard, Leslie, Maddox,
Mountjoy, Robert Pacheco, Rod Pacheco, Richman, Runner,
Strickland, Wyland, Wyman, Zettel
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NC:kb 8/21/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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