BILL ANALYSIS
SB 1037
Page 1
SENATE THIRD READING
SB 1037 (Kehoe)
As Amended August 15, 2005
Majority vote
SENATE VOTE :26-14
UTLITIES AND COMMERCE 7-3 NATURAL
RESOURCES 7-2
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|Ayes:|Levine, Baca, Blakelsee, |Ayes:|Chu, Bass, Berg, |
| |Calderon, Jerome Horton, | |Calderon, Laird, Klehs, |
| |Montanez, | |Leno, Nation, Levine, |
| |Ridley-Thomas | |Saldana, Yee, Mullin |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bogh, Keene, Wyland |Nays:|Sharon Runner, Emmerson, |
| | | |Haynes, Nakanishi, |
| | | |Walters |
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APPROPRIATIONS 12-5
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|Ayes:|Chu, Bass, Berg, | | |
| |Calderon, Laird, Klehs, | | |
| |Leno, Nation, Levine, | | |
| |Saldana, Yee, Mullin | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Sharon Runner, Emmerson, | | |
| |Haynes, Nakanishi, | | |
| |Walters | | |
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SUMMARY : Requires electric utilities, municipal utilities
(munis), and the Public Utilities Commission (PUC) to make
energy efficiency programs a priority before acquiring other
sources of electricity or building new transmission lines.
Specifically, this bill requires:
1)PUC to require gas and electric utilities, in procuring
energy, to first acquire all available energy efficiency and
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demand reduction recourses that are cost-effective, reliable,
and feasible (before conventional generation or other
resources), as specified.
2)PUC, in considering an application for a certificate of public
convenience and necessity for an electric transmission line,
to consider all cost-effective alternatives that would meet
the need, as specified.
3)Munis, in procuring energy, to first acquire all available
energy efficiency and demand reduction recourses that are
cost-effective, reliable, and feasible (before conventional
generation or other resources), as specified.
4)Munis to annually report to its customers and to the
California Energy Commission (CEC) its investments in energy
efficiency and demand reduction programs.
EXISTING LAW :
1)Establishes and funds various energy efficiency programs for
public and private electric and gas utilities.
2)Requires each investor-owned electric utility to purchase
energy according to a procurement plan, subject to PUC
approval.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs to the PUC and the CEC.
COMMENTS : The purpose of this bill is to codify recent PUC
decisions requiring electricity companies to make energy
efficiency measures their first priority in planning to meet new
demands.
California's energy agencies, including PUC, have adopted an
"Energy Action Plan" (EAP) which includes a "loading order" for
the acquisition of new resources. The loading order prioritizes
energy efficiency by stating that energy needs should first be
met by energy efficiency and demand reduction programs before a
utility procures new electricity from renewable resources or
fossil fuel fired generating facilities. Energy efficiency
measures are considered some of the most cost effective ways of
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meeting California's growing energy needs, since it is generally
less expensive to conserve electricity than it is to build new
power plants to meet demand.
EAP and its loading order have no force of law and merely state
the planning preferences of the state's energy agencies.
However, elements of EAP, including the loading order, have been
incorporated into PUC decisions governing the privately-owned
utilities it regulates. EAP has not been adopted by, and is not
directly enforceable upon, publicly-owned utilities.
Publicly-owned utilities are subject to state law, but are not
subject to PUC jurisdiction. Instead, they are public agencies
governed by local elected officials.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0012254