BILL ANALYSIS Ó
AB 719
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Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 719 (Roger Hernandez) - As Amended: April 16, 2013
Policy Committee: Utilities and
Commerce Vote: 10-3
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires the Public Utilities Commission to order
electrical corporations to submit a tariff to be used, at the
discretion of local governments, to fund energy efficient street
light poles.
Specifically, this bill:
1)Requires the tariff to be structured in a manner that allows
local governments to pay for improvements over time, without
shifting costs to non-participating ratepayers.
2)Limits the program to local governments who pay the
electricity bills for utility-owned street light poles.
3)Allows eligibility for any other rebates or incentives
available through rate-payer funded programs intended to
increase energy efficiency.
4)Defines street light pole as a pole, arm, or fixture used
primarily for street pedestrian, or security lighting.
5)States legislative intent that street light poles will be
converted to use cost-effective technology that reduces energy
consumption.
FISCAL EFFECT
Increased state costs of administering the tariff of
approximately $120,000 (special fund).
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COMMENTS
1)Purpose. According to the author, street lights are neglected
pubic facilities operating on outdated energy technology with
cities paying the higher energy costs associated with the old
technology.
To address the issues of reducing demand for electricity and
reducing electricity costs paid by local governments for
utility owned streetlights, without impacting other
ratepayers, the author intends this bill to allow local
governments to voluntarily elect to a new rate plan that will
a) fund the energy efficiency improvements over time through
the tariff remitted by the local government, b) achieve lower
electricity bills, and c) be eligible for ratepayer-funded
rebates to help offset the cost of the improvement.
2)Background. Street light poles can be owned by local
governments, investor-owned utilties homeowner associations,
or private parties. According to data provided by the PUC,
local government and investor-owned utilities own the
following number of street light poles:
------------------------------------------
|Utility | IOU owned | Local |
| | | Government |
| | | Owned |
|----------------+-----------+-------------|
|PG&E | 175,585 | 554,000 |
|----------------+-----------+-------------|
|SCE | 653,209 | 115,460 |
|----------------+-----------+-------------|
|SDG&E | 27,981 |119,469 |
------------------------------------------
The local government pays the energy bill for the street light
regardless of whether the pole is owned by the government or
the utility.
A number of cities in California have received loans and
grants to fund energy efficient streetlight replacements
through the American Recovery and Reinvestment Act of 2009
(AARA), administered by the California Energy Commission
(CEC). It is not known how many cities have converted street
lights without assistance or how many will be able to convert
assistance now that the grant program has stopped accepting
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new applications.
Of the local government owned poles, roughly 20% in Pacific
Gas and Electric (PG&E) area have been converted, about 1% in
Southern California Edison's (SCE's) area have been converted,
and about 40% of San Diego Gas & Electric (SDG&E) area poles
have been converted. Very few utility-owned poles (less than
40 total) have been converted.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081