BILL NUMBER: SB 769 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Simitian
FEBRUARY 22, 2005
An act to add Chapter 10.8 (commencing with Section 25940) to
Division 15 of the Public Resources Code, relating to energy
resources, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 769, as introduced, Simitian. Energy Reliability and
Affordability Act.
Existing law requires the State Energy Resources Conservation and
Development Commission to implement and administer various energy
generation and conservation programs in the state.
This bill would enact the Energy Reliability and Affordability
Act, to increase energy reliability and affordability by reducing the
demand for energy by residential customers. The bill would create
the Energy Reliability and Affordability Fund in the State Treasury.
The bill would provide that the moneys in the fund shall be
continuously appropriated to the commission, without regard to fiscal
year; and, would authorize the expenditure of moneys in the fund by
the commission, for the purposes of the act, as provided. The bill
would provide that the act shall be implemented by the commission to
the extent that funds are available to the commission for the
purposes of the bill.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 10.8 (commencing with Section 25940) is added
to Division 15 of the Public Resources Code , to read:
CHAPTER 10.8. ENERGY RELIABILITY AND AFFORDABILITY ACT
25940. This chapter shall be known, and may be cited, as the
Energy Reliability and Affordability Act. The purpose of the act is
to increase energy reliability and affordability by reducing the
demand for energy by residential customers.
25940.1 The Legislature finds and declares all of the following:
(a) The oldest home appliances, such as refrigerators and small
air-conditioners, are the least efficient. Those appliances consume
unnecessary amounts of energy, and should be replaced with new, much
more efficient appliances. Also, older homes and apartments tend to
have insufficient amounts of insulation, and often have poor
weatherstripping, outdated showerheads and faucets, and inefficient
light bulbs, which waste even more energy.
(b) Owners and renters of older homes and apartments are often
unable to afford energy saving appliances and devices, which would
improve the energy efficiency of those dwellings; and, the
modernization of those housing units would greatly benefit all energy
consumers by reducing peak energy demand and overall energy demand.
(c) The current high cost of energy has made most energy saving
improvements even less affordable; yet, the state's residents are in
greater need of reducing their energy bills as a result.
(d) Air pollution continues to be a major problem in California,
which harms the health of our residents, costs our economy billions
of dollars related to health care costs, reduces agricultural
productivity, and contributes to the deterioration of California's
infrastructure, thereby decreasing the quality of life in our state.
Reducing energy use will reduce air pollution.
25940.2. As used in this chapter, the following terms have the
following meanings:(a) "Certified local community conservation corps"
means public or private nonprofit agencies that meet the
requirements of Section 14406.
(b) "Fund" means the Energy Reliability and Affordability Fund
created pursuant to Section 25940.3.
(c) "Local community based organization" means ____.
(d) "Program" means the Energy Reliability and Affordability Act
Program established pursuant to this chapter.
25940.3. (a) All funds received pursuant to this chapter shall be
deposited in the Energy Reliability and Affordability Fund, which is
hereby created in the State Treasury.(b) Notwithstanding Section
13340 of the Government Code, the moneys in the fund shall be
continuously appropriated to the commission, without regard to fiscal
year.
25940.4. Any activity proposed to be funded pursuant to this
chapter shall be in compliance with Division 13 (commencing with
Section 21000).
25940.5. The Commission may expend the money in the fund for the
following purposes: (a) To provide sufficient incentives to owners
of old and inefficient home appliances, including, but not limited
to, refrigerators, freezers, and room and other types of
air-conditioners, to exchange these appliances for new appliances, or
retire the old appliances. Appliances to be exchanged or retired
shall be in operating condition. New refrigerators and freezers shall
meet or exceed the United States Department of Energy October 2000
standards. New air-conditioning equipment shall meet or exceed the
commission's applicable standards. In determining which appliances
are eligible for the incentives provided by the program, the
commission shall require that the most efficient appliances be
purchased pursuant to this program, taking into consideration market
availability.
(b) To provide financial incentives for residential property
owners to add insulation, install weatherstripping, replace
inefficient light bulbs, and implement other low-cost, cost-effective
energy conservation improvements.
25940.6. The commission may do all of the following to implement
the program:(a) Provide for rebates or other financial incentives to
implement this act.
(b) Use the money in the fund to publicize the program, except
that the commission shall not use more than 1 percent of the funds
for this purpose.
(c) Expend money in the fund for administration of the program,
except that the commission shall not spend more than one-half of 1
percent of the funds for that purpose.
(d) Adopt guidelines or regulations to carry out this chapter.
(e) Contract with an appropriate entity to implement and
administer this chapter.
(f) Open exchange centers, or develop other convenient means, for
the owners of appliances to trade them in for more efficient
appliances and to carry out the other provisions of this act.
25940.7. (a) A person or entity implementing subdivision (a) of
Section 25940.5 pursuant to a contract with the commission shall do
all of the following:(1) Assist in the pickup of an old appliance.
(2) Certify to the commission that the energy inefficient model
was or will be destroyed or dismantled in an environmentally sound
manner. No appliance exchanged as part of this program shall be
refurbished or reused, but metal and other parts may be recycled.
(3) Carry out recycling of major appliances, as defined in Section
42166, in compliance with Article 10.1 (commencing with Section
25211) of Chapter 6.5 of Division 20 of the Health and Safety Code,
and Chapter 3.5 (commencing with Section 42160) of Part 3 of Division
30 of the Public Resources Code.
(b) The commission shall give first and highest priority to
contracting with local community-based organizations, certified local
community conservation corps and the California Conservation Corps
in carrying out this act.
25940.8. (a) The moneys in the fund shall, to the greatest extent
possible, be used to reduce the cost of energy for persons who can
least afford high energy prices. The commission shall give highest
priority to using the funds for improving the energy efficiency of
housing owned or occupied by low-income persons.(b) The commission
shall consider cost effectiveness in reducing energy demand in
adopting guidelines or regulations for the program, but shall give
higher priority to reducing the energy costs borne by persons who can
least afford high energy prices.
SEC. 2. The Energy Reliability and Affordability Act established
pursuant to Chapter 10.8 (commencing with Section 25940) of Division
15 of the Public Resources Code shall be implemented by the State
Energy Resources Conservation and Development Commission, to the
extent that funds are available to the commission for those purposes.