BILL NUMBER: AB 2404 CHAPTERED
BILL TEXT
CHAPTER 240
FILED WITH SECRETARY OF STATE AUGUST 1, 2008
APPROVED BY GOVERNOR AUGUST 1, 2008
PASSED THE SENATE JULY 14, 2008
PASSED THE ASSEMBLY MAY 28, 2008
AMENDED IN ASSEMBLY MAY 23, 2008
AMENDED IN ASSEMBLY APRIL 9, 2008
AMENDED IN ASSEMBLY APRIL 1, 2008
INTRODUCED BY Assembly Member Salas
FEBRUARY 21, 2008
An act relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2404, Salas. Energy efficiency: water efficiency programs.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations. Existing law requires the commission to require
electrical corporations to identify a separate rate component to
fund programs that enhance system reliability and provide in-state
benefits. This rate component is a nonbypassable element of local
distribution and is collected on the basis of usage. The funds are
collected, in part, to support cost-effective energy efficiency and
conservation activities. Existing law establishes a surcharge on all
natural gas consumed in the state to fund certain low-income
assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and
development. Existing law requires a public utility gas corporation,
as defined, to collect the surcharge from natural gas consumers, as
specified. The money from the surcharge is deposited in the Gas
Consumption Surcharge Fund and is continuously appropriated to
specified entities, including to the commission, or to an entity
designated by the commission, to fund low-income assistance programs,
cost-effective energy efficiency and conservation activities. An
existing decision of the commission approved pilot programs for the
state's largest electrical and gas corporations through which they
will develop partnerships with water agencies to undertake specific
water conservation programs and will measure the results and fund
studies necessary to understand more accurately the relationship
between water savings and the reduction of energy use and the extent
to which those reductions would vary for different water agencies.
This bill would require the commission, by March 31, 2010, to
report to the Legislature on the results of the pilot programs,
provide conclusions drawn from the pilot programs, and make
recommendations as to whether the electrical and gas corporations
would or could achieve cost-effective energy efficiency improvements
through water conservation programs.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The Department of Water Resources concluded in the most recent
California Water Plan that the largest single new supply available
for meeting the state's growing demand for water over the next 25
years is water use efficiency.
(b) In the report titled "California's Water-Energy Relationship"
prepared by the State Energy Resources Conservation and Development
Commission (Energy Commission) as part of its 2005 Integrated Energy
Policy Report proceeding, the Energy Commission concluded that
water-related energy use consumes 19 percent of the state's
electricity, 30 percent of the state's natural gas, and 88 billion
gallons of diesel fuel each year.
(c) It may be possible to obtain significant energy savings by
reducing the use of water and developing and treating water more
effectively.
(d) If the Public Utilities Commission finds that water efficiency
improvement programs can achieve cost-effective energy efficiency
savings, electrical corporations and gas corporations should consider
potential energy savings that could be achieved through water
efficiency improvements and, where cost effective, incorporate those
programs into their energy efficiency programs.
(e) Because water may be transported from or through one
electrical utility's service territory and used in the service
territory of a different electrical utility, an electrical utility
should be authorized to partner in water efficiency programs outside
their service territory if the Public Utilities Commission or the
local publicly owned electric utility's governing board finds that by
partnering the utilities would optimize energy efficiency programs
and result in energy savings within their service territory.
(f) In Decision 07-12-050 the Public Utilities Commission approved
pilot programs for the state's largest electrical and gas
corporations through which they will develop partnerships with water
agencies to undertake specific water conservation programs and will
measure the results and fund studies necessary to understand more
accurately the relationship between water savings and the reduction
of energy use and the extent to which those reductions would vary for
different water agencies.
(g) Pursuant to Decision 07-12-050, the electrical and gas
corporations are to design their programs beginning January 1, 2008,
and are to implement the programs for one year, beginning July 1,
2008, or by an earlier date if the Energy Division of the Public
Utilities Commission is able to obtain certain consultants.
SEC. 2. The Public Utilities Commission shall by March 31, 2010,
report to the Legislature on the results of the pilot programs
approved in Decision 07-12-050. The commission shall provide
conclusions drawn from the pilot programs and make recommendations as
to whether the electrical and gas corporations would or could
achieve cost-effective energy efficiency improvements through water
conservation programs.