BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 719 (R. Hernandez) - Energy: energy efficiency: street light
pole.
Amended: August 12, 2013 Policy Vote: EU&C 6-2
Urgency: No Mandate: Yes (see staff
comments)
Hearing Date: August 12, 2013 Consultant:
Marie Liu
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 719 would require the California Public
Utilities Commission (CPUC) to require investor-owned utilities
(IOUs) to offer a tariff for local governments to use to fund
energy efficiency improvements in street light poles owned by
the utility.
Fiscal Impact: Onetime costs of approximately $130,000 from the
Public Utilities Reimbursement Account (special) to develop the
necessary rulemaking.
Background: Each local agency pays the energy bill for the
street lights in its jurisdiction, although many agencies do not
own the street light poles and fixtures. Local agencies that own
the poles can convert those to more efficient street lights,
thereby reducing their energy use and monthly bills. However
utilities have little incentives to make energy efficiency
retrofits to street lights they own, although when they do, the
entire retrofit costs can be recovered through rates paid by
ratepayers. According to the Senate Energy, Utilities, and
Communications Committee, very few utility-owned poles have been
converted to more efficient lighting.
Proposed Law: This bill would require the CPUC to mandate that
IOUs offer a tariff to fund energy efficiency improvements in
street light poles owned by the IOU in order to reduce energy
consumption. Participation in the tariff would be at the
discretion of the local governments who are streetlight
customers.
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The tariff must be designed to allow local governments to remit
the cost of the improvement over time without shifting costs to
nonparticipating ratepayers. The cost of the improvement must be
identified separately on the electrical bill.
The street light improvement would be made eligible for any
rebate or incentives made available through rate-payer funded
energy efficiency programs.
Staff Comments: The CPUC will need to open a proceeding to
direct the utilities to propose a new tariff to pay for energy
efficiency improvements on utility-owned street lights at a cost
of approximately $130,000.
This bill does not result in a state-reimbursable mandate as the
mandate only involves the definition of a crime or the penalty
for conviction of a crime.