BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                  AB 719
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 719 (Roger HernŠndez)
          As Amended  April 16, 2013
          Majority vote 

           UTILITIES & COMMERCE              10-3               
          APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Bonilla,        |Ayes:|Gatto, Bocanegra,         |
          |     |Buchanan, Fong, Garcia,   |     |Bradford,                 |
          |     |Roger HernŠndez, Quirk,   |     |Ian Calderon, Campos,     |
          |     |Rendon, Skinner, Williams |     |Eggman, Gomez, Hall,      |
          |     |                          |     |Ammiano, Pan, Quirk,      |
          |     |                          |     |Weber                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Patterson, Beth Gaines,   |Nays:|Harkey, Bigelow,          |
          |     |Jones                     |     |Donnelly, Linder, Wagner  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Requires an electrical corporation to replace  
          low-efficiency light bulbs with high-efficiency light bulbs in  
          street light poles that the electrical corporation owns.  
          Specifically,  this bill  :  

          a)Requires electrical corporations, as part of the energy  
            efficiency targets established by the California Public  
            Utilities Commission (PUC), to replace low-efficiency light  
            bulbs with high-efficiency light bulbs in street light poles  
            that the electrical corporation owns, at the same rate as the  
            city, county, or city and county in which any of the  
            electrical corporation's street light poles are located or at  
            the highest rate of an adjacent city or county if the street  
            light poles are located in a city or county that does not own  
            any street light poles.

          b)Expresses the intent of the Legislature that this program be  
            funded through existing collection mechanisms, and that the  
            implementation of this program not result in an increase in  
            any amount collected.

          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, increased state costs of administering the tariff of  








                                                                  AB 719
                                                                  Page  2


          approximately $120,000 (special fund).

           COMMENTS  :   

           1)Author's Statement  .  According to the author, "Our street  
            lights are neglected public facilities that are operating on  
            outdated energy technology with cities footing the higher  
            energy costs associated with this old technology. Corporate  
            utilities that stand by without making energy efficiency  
            retrofits, profit from the status quo when more energy is  
            consumed by their customers, at the expense of the tax payers  
            and the environment. In my district, of the 653,209 street  
            lights that the servicing utility company owns, only 16 of  
            those have been replaced with energy efficiency lighting. That  
            is less than two tens of thousandths of one percent (0.000025)  
            of their street lights. Something has to be done to provide  
            relief to our cities and counties, particularly when they are  
            making strides and efforts of their own in addressing the  
            matter."

           2)Who Owns the Street Lights  ?  Street light poles can be owned  
            by local governments, Investor Owned Utilities (IOUs),  
            homeowner associations, or private parties.  According to data  
            provided by PUC, local government and IOUs 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  








                                                                  AB 719
                                                                  Page  3


            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  
            new applications (although some new assistance may be  
            available through revolving loan programs).

            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.

           3)Who's Motivated to Convert Street Lights  ?  Generally it is the  
            entity paying the energy bill that has a motivation to reduce  
            energy consumption.  In this situation, the pole is owned by  
            the utility and the local government pays the energy bill.  As  
            a result, local governments are motivated to find ways to  
            reduce energy usage and save money. 

            Currently, local governments are eligible for ratepayer-funded  
            rebates to help reduce street light conversion costs.  PUC has  
            not allowed utilities to be eligible for ratepayer-funded  
            rebates for this purpose.

            PG&E is proposing to replace up to 160,000 non-decorative  
            utility-owned streetlights in its 2014 General Rate Case.   
            PG&E is proposing that the costs for the program through an  
            adjustment in the facility charge for customers who elect to  
            participate in and benefit from the program.  PG&E estimates  
            replacing High Pressure Sodium Vapor (HPSV) with Light  
            Emitting Diodes (LEDs) will save 52.8 million kilowatt-hours  
            annually, reduce customer energy bills (which includes the  
            cost of the facility charge), and improve reliability through  
            fewer streetlight burnouts.

           4)New Technologies May or May Not Meet the Service Requirements  
            for Street Lights  .  HPSV lights are the predominant type of  
            street light technology.  Energy efficiency opportunities for  
            improving street lights can be accomplished via induction  
            lights or LED lights.  Depending on models and usage,  








                                                                  AB 719
                                                                  Page  4


            induction lights can reduce energy consumption by 10% to 50%  
            and last up to four times longer than HPSV lights.  LED lights  
            can reduce energy consumption by up to 50% and last twice as  
            long as HSPV lights.

            LED lighting systems do not have established standards  
            therefore there may be financial risks with purchasing  
            currently-available technology that does not deliver the type  
            and level of lighting necessary to provide similar level of  
            lighting services that were provided by the HSPV technology.   
            According to a 2011 report by the Rensselaer Polytechnic  
            Institute's Lighting Research Center which tested various  
            streetlight technologies against design criteria specified by  
            the American National Standards Institute (ANSI), the tested  
            LED streetlights required from 3% to 92% more poles per mile  
            than the base case to meet the ANSI standard. Pole  
            configuration (staggered vs. single sided).  The study found  
            that with the additional poles necessary to achieve equivalent  
            lighting the net energy consumption would increase an average  
            of 51% to 41% more per mile.  Rensselaer estimated that an  
            incentive range of $250 to $1550 per streetlight in addition  
            to a volume discount for an LED with a life of 25,000 hours or  
            longer or an induction streetlight would be needed to achieve  
            a lower life-cycle cost per mile than the study's base case.   
            As lighting technologies improve, it is likely these issues  
            will be addressed.

            Alternatively, or in addition, control technologies could help  
            reduce street light energy consumption by dimming or turning  
            off the lamp during certain specified time periods.

           5)Street Lights Perform a Service  .  Communities use street  
            lights to provide a public benefit. Examples of public benefit  
            include providing enhanced visibility at intersections where  
            vehicles might encounter pedestrians or to deter criminals who  
            benefit from the cover of darkness. According to United States  
            (U.S.) Department of Justice, it street lighting is not always  
            that straightforward and some crime-prevention experts  
            hypothesize that street light can sometimes increase crime  
            (nighttime as well as daytime).  For purposes of safety, U.S.  
            Department of Justice, in its report on "Improving Street  
            Lighting to Reduce Crime in Residential Areas," they describe  
            several considerations for police to consider for specific  
            lighting improvement projects: 








                                                                  AB 719
                                                                  Page  5



             a)   Product life;

             b)   Energy Efficiency;

             c)   Color rendering (the perceived color of an object);

             d)   Optical Control (direction of light distribution);

             e)   Brightness (of the object and the light emanating from  
               the lamp);

             f)   Vertical illumination (the measure of light delivered at  
               a sufficient height from the ground so that people can see  
               the faces of other pedestrians); and

             g)   Glare.


           Analysis Prepared by  :    Susan Kateley / U. & C. / (916)  
          319-2083 


                                                                FN: 0000556