BILL NUMBER: SB 703 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 3, 2003
AMENDED IN SENATE APRIL 30, 2003
INTRODUCED BY Senators Florez, Denham, and Poochigian
FEBRUARY 21, 2003
An act to add Section 745 to the Public Utilities Code, relating
to public utilities , and declaring the urgency thereof, to take
effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 703, as amended, Florez. Electricity rates: agricultural
irrigation pumps.
The California Constitution authorizes the Public Utilities
Commission to set rates for all public utilities subject to its
jurisdiction.
This bill would require the commission to consider the
significant air quality benefits of electricity, compared to diesel,
in establishing agricultural and water pumping electricity rate
schedules. The bill would also require the commission to consider
reducing or eliminating demand and other fixed charges, establishing
competitive long-term electricity rate contracts for existing diesel
users, and establishing rate schedules that are competitive with
diesel rates, to prevent future conversions, in setting those rates.
establish incentive rates for agricultural and water
pumping customers that are competitive with the cost of operating
diesel-driven irrigation pumps and other diesel-driven agricultural
equipment and in establishing those incentives, to take into
consideration the significant air quality and public health benefits
of retiring existing diesel-driven irrigation pumps and other
diesel-driven agricultural operations, to prevent future conversions
to diesel equipment, and to accomplish certain results.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 .
Appropriation: no. Fiscal committee: yes. State-mandated local
program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares all the
following:
(a) Over the past 15 years, a significant number of agricultural
irrigation pumps , wind machines, and other agricultural
equipment, have been converted from electrical motors to
diesel-driven engines, due to rising electricity rates ,
particularly fixed demand charges .
(b) Diesel-driven irrigation pumps and other diesel-driven
agricultural equipment represent a source of oxides of nitrogen
(NOx) and particulate matter that exacerbates the existing air
quality problems facing these areas.
(c) It should be many areas of the state.
(c) The reduction or elimination of emissions from diesel-driven
irrigation pumps and other diesel-driven agricultural equipment is in
the public interest.
(d) It is the policy of the State of California and the
California Public Utilities Commission to encourage the use
of electric motors for agricultural irrigation pumps
alternatives to diesel-driven irrigation pumps and other
diesel-driven agricultural equipment, including electric motors
, through the development of long-term rate structures that are
competitive with diesel pumping engines.
(d)
(e) It is the intent of the Legislature, in enacting this
statute, to establish agricultural and water pumping electricity rate
schedules that are competitive with diesel rates to prevent
additional conversions of agricultural irrigation pumps, and to
provide an incentive to convert diesel-driven irrigation pumps back
to electrical motors.
SEC. 2. Section 745 is added to the Public Utilities Code, to
read:
745. (a) In establishing agricultural and water pumping
electricity rate schedules, the commission shall consider all of the
following:
(1) The significant air quality benefits of electricity, compared
to diesel.
(2) Reducing or eliminating demand and other fixed charges.
(3) Establishing competitive long-term electricity rate contracts
for existing diesel users.
(4) Establishing rate schedules that are competitive with diesel
rates, to prevent future conversions.
(b) In setting rates pursuant to this section, the commission may
include the costs of appropriate rate incentives, allocated equitably
among customer classes that benefit from any resulting improvements
in air quality. The commission shall establish
incentive rates for agricultural and water pumping customers that are
competitive with the cost of operating diesel-driven irrigation
pumps and other diesel-driven agricultural equipment.
(b) In establishing the incentive rates for agricultural and water
pumping customers, the commission shall take into consideration the
significant air quality and public health benefits of retiring
existing diesel-driven irrigation pumps and other diesel-driven
agricultural operations and preventing future conversions to diesel
equipment.
(c) In establishing incentive rates to reduce or eliminate
diesel-driven irrigation pumps or other diesel-driven agricultural
equipment, the commission shall provide for all of the following:
(1) A process, when appropriate, to certify that Tier I
diesel-driven irrigation pumps or other diesel-driven agricultural
equipment existing as of January 1, 2003, is permanently retired, and
Tier II equipment is appropriately retired or reallocated for net
emissions reduction.
(2) A process to quantify the net reduction of air emissions
associated with retirement or conversion prevention, with any surplus
emission credits, as determined by the regional air district, to be
credited to ratepayers.
(3) Consideration of the costs for electrical distribution line
extensions and hookups necessary to furnish electricity service.
(4) Consideration of, and coordination with, other state and
federal incentives for the conversion of diesel-driven irrigation
pumps and other diesel-driven agricultural equipment.
(5) Coordination with other agricultural energy efficiency
incentives and programs.
(d) In implementing this section, the commission is authorized to
include costs of necessary and appropriate incentives in rates,
allocated equitably among customer classes, benefiting from the
resulting improvements in air quality. In authorizing such rates,
the commission shall find it in the ratepayer interest.
(e) The commission shall establish the rates under this section as
part of ongoing comprehensive utility rate proceedings.
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:
In order to ensure that critical air quality and public health
benefits are achieved in an expedited manner, it is necessary that
this act take effect immediately.