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CC - Item 6A - Southern California Edison Street Light Acquisition and Conversion ProgramROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BILL R. MANIS, CITY MANAGER,,,V \ DATE: JANUARY 24, 2017 SUBJECT: SOUTHERN CALIFORNIA EDISON STREET LIGHT ACQUISITION AND CONVERSION PROGRAM SUMMARY At the Council Meeting on January 10, 2017, City staff presented four options to explore the purchasing of 1,459 streetlights from Southern California Edison (SCE). This included the opportunity to retrofit the streetlights to LEDs to reduce consumption and maintenance needs using SCE Street Light Acquisition and Conversion Program. This staff report is attached for reference (Attachment A). The City has four options to explore: 1. Status Quo 2. SCE Conversion Program — LED Bulbs 3. City Acquisition and LED Conversion 4. Tanko Lighting Acquisition and LED Conversion The City Council directed staff to find out the approximate timing to replace to LEDs fixture and liability if they end up selecting Option 2. AB 719 (Attachment B) proposes a mandate that all three investor -owned utilities establish a rate for replacing high- pressure sodium (HPS) lamps with more efficient LED fixtures. SCE is meeting the AB 719 mandates by instituting a tariff known as LS -1 Option E, which is the same as Option 2 for the purposes of discussing the four Options available to the City. LS -1 Option E (Option 2) will allow the City to request SCE to replace all SCE owned streetlights in the City with LED fixtures. The City will see a savings immediately after the lights are changed out. The operation and maintenance of the lights will remain as SCE's responsibility, including liability. This alleviates the City from having to contract for the retrofit of the lights, emergency replacement and planning activities, or operational and maintenance responsibilities. ITEM NUMBER: 6A City Council Meeting January 24, 2017 Page 2 of 3 The City is approaching the January 31, 2017, extended deadline to enter into an agreement for the purchase of the streetlights. The LS -1 Option E (Option 2) is viable alternative to the purchase of the streetlights. In order to enter the LS -1 Option E (Option 2) queue, a standardized agreement associated with the tariff would be prepared by SCE. Based on the date the agreement is signed, SCE will place the City in line for implementation. Currently, SCE has seven finalized agreements and ten agreements out for consideration. If the City of Rosemead decides to move forward with LS -1 Option E (Option 2), we would fall in line behind any existing agreements. The City has confirmed that SCE cannot provide an exact date for when they would complete the LED retrofit to the streetlights. However, SCE is requesting early funding on February 15, 2017, to begin implementing LED retrofits for existing agreements. If early funding is approved, SCE has indicated that they could complete the City of Rosemead in 2017. If the early funding request is not approved, the 2018 General Rate case includes $30 million to implement the LED retrofits, which SCE has indicated that the City of Rosemead LED retrofit could be completed in 2018. STAFF RECOMMENDATION That the City Council select Option 2 of the four potential options listed below. 1. Status Quo 2. SCE Conversion Program —LED Bulbs 3. City Acquisition and LED Conversion 4. Tanlco Lighting Acquisition and LED Conversion FISCAL IMPACT Option 2 would include a tariff that has an energy premium built in, which collects the LED retrofit cost and repays that amount over 20 years with no interest. The City does not have to come up with any up front capital, SCE provides the up -front funding with no interest, which is paid for through energy savings over 20 years. During the first 20 years, while the energy efficiency premium is in effect, the City would save approximated $25,000 annually. After 20 years, the energy efficiency premium would fall off and the City would save roughly $71,000 per year. If the City Council selects an alternative option, the fiscal impacts are as follows: • Option 1 - No fiscal impact will take place. • Option 3 and 4 — Fiscal impacts are outlined in Attachment A. STRATEGIC PLAN IMPACT - None City Council Meeting January 24, 2017 Page 3 of 3 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: fv Rafael M.Tajardo, P.E., City Engineer r Submitted by: y f � i Kathy Garg P.E., Public Works Director Attachment A: Staff Report — January 10, 2017 Attachment B: Assembly Bill No. 719 Attachment A Staff Report — January 10, 2017 ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BILL R. MANIS, CITY MANAGER,Py �_ DATE: JANUARY 10, 2017 SUBJECT: SOUTHERN CALIFORNIA EDISON STREET LIGHT ACQUISITION AND CONVERSION PROGRAM iglu 1 During the fourth quarter of 2015, the City Council directed staff to work with Southern California Edison (SCE) to prepare a valuation for the street lights within the City. The purpose of the valuation was to consider the potential acquisition and/or conversion of the street lights by the City. There are 2,511 street lights in the City. The majority of these street lights are owned by SCE and most use high pressure sodium, which are not energy efficient or easy to maintain. The City is eligible to purchase approximately 1,459 of the street lights from SCE, with the opportunity to retrofit them to LEDs to reduce energy consumption and maintenance needs. The City currently owns and operates 176 streetlights that are under additional consideration for LED retrofit. The remaining 876 street lights are not eligible to be purchased by the City because they are located on high voltage distribution line poles. The City has four options to explore: 1. Status Quo 2. SCE Conversion Program —LED, Bulbs 3. City Acquisition and LED Conversion 4. Tanko Lighting Acquisition and LED Conversion ITEM NUMBER: City Council Meeting January 10, 2017 Page 2 of 8 OPTIONI. STATUS QUO SCE will continue to own all 1,459 of the street lights available for purchase and nothing will be changed. Current Annual Street Lighting Cost thl anu arty o No. of SCE Owned Street Lights for Purchase 1,459 No. of City Owned Street Lights 176 Facilities & Energy Charge — Flat Rate $229,101 Total Cost* $229,101 *SCE owned and City owned street Liability No liability to the City. Streets lights owned and maintain by SCE. OPTION 2. SCE CONVERSIONPROGR,4MTO LED BULBS Lights) SCE will eventually convert the existing street lights from high pressure sodium street lights to LED without any street sight acquisition or cost to the City The street lights will still be owned by SCE. This is a first come, first served basis program for SCE owned lights only and there is no guarantee that SCE will be replacing the lighting in the near future. If the City chooses to let SCE do the conversion at no cost, the following is an estimate associated with costs and savings over the first 20 years: Annroximate Current Annual Street Lighting Cost (SCE ow Strew No. of SCE Owned Street Lights 1,459 Facilities & Energy Charge $204,432 Total Cost* $204,432 *SCE owned street light only it Lights) City Council Meeting January 10, 2017 Page 3 of 8 Status Quo SCE Conversion Program- LED* $189,062 Total Approximate Annual SCE LS1 Savings first 20 years $15,370 Total Approximate Annual Savings after 20 years $43,596 on LS 1 LED program Liability No liability to the City. Streets lights are owned and maintained by SCE. OPTION 3. CITY ACQUI,SITIONAND LED CONVERSION SCE has a program that provides cities the opportunity to purchase the street lights and convert them to LED. In Option 3, City staff would provide administrative supervision for the acquisition and conversion process. In addition, the City would convert the 176 City owned fixtures. The following is a cost estimate: cost Lsrrmace City Conversion from high pressure sodium to LED $544,989 Street Light Acquisition by the City $918,798 Rebate (Estimate) <$137,750> Total Capital Cost $1,326,037 Funding The City currently has $350,000 in available funding via the Street Lighting District. Depending on the direction by City Council and available financing options, these funds may be used to help subsidize the loan amount and reduce payments. This funding can also be kept in reserve to cover unanticipated repair costs, City Council Meeting January 10, 2017 Page 4 of 8 Annual Facilities & Energy Cost (SCE grid energy supply) $65,308 Annual Maintenance Charge to be provided by contractor $16,000 Estimated Annual Financing Cost for 12 years $145,404 (3% annual rate -if finance) $226,712 Total Annual Cost Status Quo $229,101 SCE Acquisition- LED $226,712 Total Annual Savings during 12 -year Loan $2,389 Total Savings over 12 -year Loan $28,668 ($2,389 x 12 years = $28,668) Total Annual Savings After Loan $147,793 ($147,793 x 8 years = $1,182,344) Total 20 Year Savings $1,211,012 ($28,668 + $1,182,344 = $1,211,012) Liability The City is liable for maintenance, repair and claims on all City owned street lights. The increase in insurance cost will be approximately $400 per year. However, any claims related to the City owned street lights would have an impact on the annual contribution. Currently, there is a pending lawsuit against SCE and other utilities involving pollution claims related to wooden light poles. SCE has not made revisions to its release and indemnity provisions for other cities purchasing street lights from SCE. These provisions effectively make the cities liable for any environmental claims relating to the poles and includes environment claims that have not yet been made, but occurred during SCE's ownership. City Staff Workload City staff estimates that approximately 250 working hours will be required to properly administer the streetlight acquisition. Some of this workload would include accompanying SCE during the changeover audit, determining appropriate fixtures replacements, release and resolve bids for material, install and maintenance, and processing SCE rate change and rebate City Council Meeting January 10, 2017 Page 5 of 8 paperwork, City staff involvement after acquisition will include ongoing maintenance by City personnel or administration and oversight of a consultant contracted to perform maintenance, processing of all invoicing and billing and continued coordination with SCE. OPTIONS. TANKO LIGHTING ACQUISITIONAND LED CONVERSION Tanko Lighting is a consultant that provides cities administrative and maintenance services to acquire and convert street lights. City staff has been working with Tanko lighting through the option evaluation process. The following is an estimate provided by Tanko lighting for the turn key process. These estimates are based on a general replacement schedule that will be refined more specifically for the needs of the City of Rosemead. In addition, the estimated loan rate will likely improve once offers are requested by the City. C.net Fctimate SCE Conversion from high pressure sodium to $544,989 LED Street Light Acquisition by the City $918,798 Rebate (Estimate) <$137,750> Total Capital Cost $1,326,037 Funding The City currently has $350,000 in available funds via the Street Lighting District. Tanko Streetlighting will assist City staff is determining the best financing options and analyze the most efficient use of the available funding. Approximate Annual cost Annual Facilities & Energy Cost (SCE grid energy $65,308 supply) Annual Maintenance Charge to be provided by $15,713 a contractor Estimated .Annual Financing Cost for 20 years $145,404 (3% annual rate -if finance) Total Annual Cost $226,425 City Council Meeting January 10, 2017 Page 6 of 8 Status Quo W SCE Acquisition- LEA $226,425 Total Annual Savings during the 12 -year Loan* $2,676 Total Savings over 12 -year Loan $32,112 ($2,676 x 12 years = $32,112) Total Annual Savings After Loan $148,080 ($148,080 x 8 years = $1,184,640) Total 20 Year Savings $1,216,752 ($32,112 + $1,184,640 = $1,216,75 Liability The City is liable for maintenance, repair and claims on all City owned street lights. The increase in insurance cost will be approximately $400 per year. However, any claims related to the City owned street lights would have an impact on the annual contribution. The same pending lawsuit against SCE and other utilities involving pollution claims related to wooden light poles and potential liability mentioned in Option 3, also apply to option 4. Difference between Option 3 and Option 4 The difference between the Tanko Lighting acquisition and conversion program and the City staff acquisition and conversion program is that Tanko Lighting offers a comprehensive turnkey process that utilizes unique approaches to expedite the acquisition process with minimum involvement from City staff during the process, resulting in additional savings to the City. Tanko Lighting is currently assisting Santa Ana, Orange, Tustin, West Hollywood, Signal Hill, Fullerton and Rancho Cucamonga with similar work. If Council recommends Option 4, the following methods are available to use: 1. Sole Source - California ESCO sole source law allows a municipality to avoid Request for Proposal (RFP) when a project is related to energy efficiency and is revenue neutral, or in this case, positive. 2. Piggy Back — When a municipality utilizes another municipalities RFP and cost estimate /valuation for professional services. 3. RFP City Council Meeting January 10, 2617 Page 7 of 8 BENEFITS AND IMPACTS OF LED RETROFIT Benefits of LED Retrofit Potential Impacts Cost Savings (electricity and maintenance) Discomfort /glare Greenhouse Gas Emission Reduction An American Medical Association report says high- intensity LED streetlights emit unseen blue light that can disturb sleep rhythms and possibly increase the risk of serious health conditions, including cancer and cardiovascular disease and confuse animals. Improved Visibility Impair nighttime driving vision According to the Wall Street Journal (Attachment A), about 500 New YorIc City residents signed a petition urging the City to stop installing a certain kind of LED. The petition asked for fully shielded lights that would decrease light pollution and for LED lights of a warmer color, meaning more yellow. How to Address Potential Impacts_ 1. Cooler and dimmer LEDs are preferable in residential areas. 2. Shielding will minimize glare and other impact to human and environmental health. 3. See attached letter from our electrical consultant regarding Wall Street Journal Article (Attachment B). STAFF RECOMMENDATION That the City Council provides direction regarding the following options: Status Quo SCE Conversion Program —LED Bulbs SCE Acquisition and LED Conversion Tanko Lighting Acquisition and LED Conversion FISCAL IMPACT As indicated in the summary of this report, the acquisition cost from SCE would be $918,798. The City has approximately $350,000 from Street Lighting Funds that can be utilized towards this project. The City can also opt to not draw from the Street Lighting Funds and finance the full City Council Meeting January 10, 2017 Page 8 of 8 cost of the project. There would be an increase in insurance cost of $400 a year plus any cost associated with claims related to the City owned street lights. The potential overall liability cost is currently unknown due to the pending lawsuits with SCE and the possibility of cities being liable for any environmental claims relating to the poles, including environment claims that have not yet been made, but occurred during SCE's ownership. STRATEGIC PLAN IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Rafael aj ardo, P.E., City Engineer Submitted by: by: Kathy G ' 1a, P.E., Public Works Director Attachment A: The Wall Street Journal Article Attachment B: CEG Engineering, Inc. Letter RE: Replacement of Existing Streetlight with LED Streetlight Fixtures Attachment A The Wall Street Journal Article A, .„L= ':D:;Stre:tlpght.5, Some:.iCritics .Dori'eell `the Glow gy;YL CF ERN6VAi „ , rent.installatiorc, t D. street ei treat. Tragg sportation •� leings •>s,complete,it�sexliected. Departhiept; •theci ty wil#;relso � 9 ;tolave` the , cityabout,$6mi8iah•,consider; feasibility CITDES e n31dall ARSUIiTA the wdrld are'. a,year on eie,'ctriaty and•$8.mi1- Aft er, ; $ayMJ rep achlg`oid stieetliglits lv}th''16A on.maimenance: `yhs en-' , , Labe Worth, •Fla., Iowa „(' enezgy. ffacienfI,l:Ds. Not ey- ' ergy sav .am'amathenisiical 'officials chose the•more;Y 1.Q o eryone'Is Happy about ak fa'et the spdkesinan s$ys, Might when they decided to., Streetlights that' use light? Johnl3uitouglt; difectoi of cont'ex't some :5,30tl street emitting diodes have a lot of ".. P,Qadon ,antl,'safety ; lightstb,f EDsearEer•this.year,• appeal. They reguira',ioughly ".lighting' piograins`, ;at,`;the ;Tlie:color of:the 50Y less;eneigy tli?n th`a com ',Lighting Research' Center at lights was measured at 9ii 6• , moo h pressure sodium'anc> :1Fensselaer , insd- Aelvins..The Flgd a'lYanspor- metal }iande lamps, find diet' ','tote says the effect of outdoor ta,' 4 IJepartrnettt, howev i 1 last m uch longer, resulting in LEDs on hutnan•healtli hasn'.t • s diffes bluer, 4,00fC Ii'glits. big cost savings. , been clearly e¢tablis fn fdi iriejor roadways, ; '1' number "of L'E]) °str'ee¢ .fact; he says, the use. of'com ' 6ftezanalving- the�interisit!! ,, lig, ,sin t1ie;U.S: grew'to ° 57'; pater screens at iugliti.ttiight„ ,of latngs„ tlae tdwn, 1 p million in 2014,'oi, %aliou't 13% 'Nave a stronger effect':on sleep , fdund' `tthat the more. ,yellow. ; of all' streetlights,, from 13 disruption ,than oatdooi ' lights, ,.produced ° as much million in 2612, to 'brighihiss as, the 'state xe: the U. Energy'Degsrtirient..� —"red. Tlie rasults persuaded But some con.,cerns, h'at'e , A - NeW Light -' . ; ' the stat@ to allow the to nm•fo'. arisen abmt t the' LEDs, k4q! t,;• :;The.umber of Lib st,reetli,ghts l owe r - Kel �Q n 'T cominonjy ,u�sedin"streetiights.' lnstalledlntheUS , autofabout 88PS;ABc?3ael; fib tnStein, 1V[us$ LEDs in,sireet that hu- ? I amps 45.inaltoh total. +Ttfe EneF9y lgarth's city manager, eiiut a �blttish light, and some' , Department estimates an ene_r,'yy rgs Thd: tAwn also chP4,, .; 'iarfii has shown saving of 5,0 %ocrnar'eficm Mthseyeral briglitness 'Setlii}gs' ijtatas .lttitgr see that light as bri outdoor LEDs , - ; , and is;letting homeoWriers as- than `other llglit ' sources, speiatLOns or residents choose 't 3 prompting some ea residents' 6 m1111ow thesetbng apthe time ofWti3l, I ladon The town as also install- ' to comp l� , thatthe t ''4 in .s}uelds when residents re; ,';' ies slab have suggest h tlI the Z , ' " griestl diem: The' more- yellgyu •. -; bluisii`lig#it'in I ED's can' sup - LEDs costal ihusla to b0tall,as pres °•. the liluei''varigtp,,, Says �Jaek 1 s melafonpl,; a hbrfnt ne ; o i6 iIj&° the A m M d• 2012 2013 ;2di4 • Bar Luke Worth The rg c -- C -"to ical ilasoc #at#on� 'said "'thaE "Sou'rle:EnergYCep ?Lt�ynt; e.;ti?W' 4,.,,. rvr"n x , ry. rn• • t p`on4ly,des{gate�l LF6 stre6 ,!M.wniLSmzE Groan 1 cosG,.gr p hgh : - ,. ": i' iJ to y da can lit- . Lvers90rfe Eri @rgy; a Don- ,I cu se ea,` s ur the ;glare'; Arid ,laad 'd#siupt sti�eetlights, But his research' nectieirt utility, has iirstalled' s sleeji� which d?ia ' to does 'show t}rat people.'_'abdj&t8§ LEDs,of 4,000k - I, chropic h @allth pzableina =asjd ;' malry LED's as brighter than!' the pridustcy standard, fast j confuse animelel `Tfie AMP: other fight sodYce� at "the year''' Ig 25`„gwns, put, now , a shpP same; measured' intenstq,s"gil,' „will'in.4fa1 00�CLEDS:`We. bttt sallS ;O ould use - ' hegaygthebestway.fgXeauce w�IImakeariymP icahons:or LEDs That cast amore yellow preblems from esrly''LED iij� replacements`necessary to en- 1 s #lght: and are fully: s1;�ieided `to stalladons is to replade•oldet • sure the,proteddon of puplic direct tHeir,ligljt d0p inward. b "righter models with•LEtis of health end weifazb, "sa_y'. ' Yiy°•'; Atiout 500' New ,York. City f lower intensity. c. • c .- cia Task'ey Mbt#ifica; a,spokes- `r s residents signed ^ •,petition Soma cities are, revistng . '.womanforthe.compariy., „ yrguag "rhe cityto,stop;tristaR= slr'eetlight- replacementpIaits - The'•CiinneckicutCoitfererice , e u�cert¢inlandsof bss' itL 's'�"uixesponsetoreaid @nts;pio- ''oflVTwricipa1...,wlue2tllelps' turtarng . yC i'niq a bad wg1 tea s:: hit Phoenix, appdsition to ' cihes make' joint purch'ase's• "I Ntart;p QV 'reaa'ond 'plans for go;UbO bluish LED „and #signh! ay'sn_ edmplatnt. The petitiozi aslietl streetlights the'city tore; towns :'are satisf#ed, fd'r with : die' $Wj'.aj ielaja l fights that" cjues4Ahat bidders propose a 'LEb:streetlights they }lave. "lf wopld decrease hght ollgtion der range of colors for ;the you 19W aNihy CIMO:: RAC and forLElillglits'ofawarmer,.IEAS . lnan.d e'surveycon- towns =@re changing;fo LBDS, I, is kN co_1 ewmYork g has ke uist 0 alled "''P efered Iigh s ivit}i the; saysyM energl grid y i mostly LBb street lamps,,oFthe, more yellow hue. ; "" "' ' ,Program' development! ;mart -• ' bluer' ;variety; tiuf pIans,'to: ' 'Phoenix officials say they agar for the'assoeiation. til I switch ai LEDa of a inoib yelloia wall decide on the color of the colorfor the 116,QD0;LIDa'street= , lainps.this fah. While'thwcit#- 'Ms. GhgMQvf!IS a special I, Bg}ifs �tlll to'he *Jrlgtalied .a will betaken. into' uri,(er`.far:Tlie INail;Street Tran's�iort44 iiri YE,Depaitme%t ,aecount,says „MprucalTernan=' .JournabinNewYaY , luErripit spoke '"P Once die cur- ' de% a spokeswoman. for. the' yulty¢,chernovtl @ivsj cpm; I Attachment B CEG Engineering, Inc. Letter RE: Replacement of Existing Streetlight with LED Streetlight Fixtures C E G Engineering Inc. Consulting Engineers Group 1543 W Garvey Ave N, #210, West Covina, CA 91790 TEL (626) 308 -1268 FAX (626) 308 -1216 October 17, 2016 Mr. Rafael M, Fajardo City Engineer City of Rosemead 8838 E. Valley Boulevard, Rosemead, CA 91770 Regarding: Replacement of Existing Streetlight with LED Streetlight Fixtures Dear Mr. Fajardo, We have reviewed the article discussing the replacement of old streetlight with energy - efficient LED light fixtures. The article is accurate regarding the fact that, in addition to cost savings associated with reduced energy consumption, the brighter and bluish light of a LED lamp will affect human and animal sleep cycles. The color temperature of the LED light source is calculated with the Kelvin Temperature number on the lamp. LED lamps can be produced ranging from 2700K to 5000K Kelvin. The higher the Kelvin measurement is, the higher the Color Rendering index (CRI). The CRI is a measure of a light source's ability to show object colors "realistically" or "naturally." For example, an object viewed under a light source of 5000K Kelvin will be closer to viewing the object under natural daylight when compared to light at a lower Kelvin temperature. An object viewed under the light source of 2700K Kelvin will appear yellowish, similar to viewing the same object under an incandescent lamp. In another words, an object viewed under a 5000K Kelvin light source can be seen much more clearly than under a 2700K light source. Therefore, to replace streetlights with LED light fixtures, we have the following suggestions: 1. Install higher Kelvin LED fixtures on the busy major streets. Provide shielding on the fixture and adjust the LED lamp so that it only illuminates the roadways and sidewalks. and minimizes illumination of private property. 2. Install lower Kelvin LED fixtures on residential streets. Provide shielding on the fixture and adjust the LED lamp so that it only illuminates the roadways and sidewalks, and minimizes illumination of private property. Please let me know if you have any question or comments, With best regards, Jessieu.E. Electrical Engineer CL-:G Engineering, Inc. .C•0?vlrapgf �:olGJOlI'Ji 10000? LIgh"119 paw LJ V) O GA W a O .� �••� � O � •� Q W� OF* Q CCj •r•1 4 • v� E� W 0 H U a N O Q A a � O ca �� w L O z 0 a 0 o 0 U Q a o � o Q W o M< W LLJ 0 00 Q �A W U G' ;y Q � W 7� 0 � � W a � � o N O L7 U O O Cd o � •� � W � 0 00 Q �A G' ;y s� u� u1 Ln O M H c a Cl O a O M ro W � U W 0 0 cd 0 01 a� 0 U U NO O 0 0 U Y W A O m W y th � U + U O �N 'C 'tS c � y bA bA U r U U Q � U • ^C3 c N Qy 0 a�i rig b C Z's o u ++ C � • U V] bA O ;-4 U _ - O p N cd � ;� w Gn Q to U� U 0 �n O M ro W � U W 0 0 cd 0 01 a� 0 U U NO O 0 0 U Y W A O m W ONA-< W y U ai 'C �. O " A � x •� V U Q L rds U U � O � U d d Y � Sri �U a U 4 1,2 O ceS ' ap � •� '-' �1 '� b� � U O .O" ` i QQ � T •4 j ' �.y N C U. :.. 0 as , • f � v . 4 ; i ; t a�" a � O .c O' rw t Fs 10 O , :.. 0 � 2 u � O � H U � ƒ \ 2 \ � ] k « ( q \ § » k ƒ / 4 § # ƒ d § \ \ '\ / k k ( \ S. / ƒ) « � 2 \ c e \ .2 o q 7 4 � \ e. : � � ƒ bi) � . § • t �� \. . t 4 § # ƒ d § \ \ '\ / k k ( \ S. / ƒ) « � \ c e \ .2 o q \ \ e. : § � bi) � • t �� \. b % 0 » a P 2 2 ƒz U ' LL, v. bA ua O o I: Q W a 0 a 0 d o � U � W vs con Attachment B Assembly Bill No. 719 Assembly Bill No. 719 CHAPTER 616 An act to add Section 384.5 to the Public Utilities Code, relating to energy. [Approved by Governor October 7, 2013. Filed with Secretary of State October 7, 2013.] LEGISLATIVE COUNSEL'S DIGEST AB 719, Roger Hernandez. Energy: energy efficiency: street light pole. Under the Public Utilities Act, or the act, the Public Utilities Commission, or the PUC, has regulatory authority over public utilities, including electrical corporations. The act requires the commission to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation's proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand - reduction resources that are cost effective, reliable, and feasible. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost - effective electricity efficiency savings and establish efficiency targets. This bill would require the PUC, on or before March 1, 2014, to order electrical corporations to submit, on or before July 1, 2015, a tariff to be used, at the discretion of local governments, to fund energy efficiency improvements in street light poles owned by the electrical corporations. The bill would state the intent of the Legislature that utility -owned street light poles, whose electricity use is paid by local governments, be converted to use cost - effective technology that reduces electricity consumption and may achieve lower utility bills. Under existing law, a violation of the act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because this bill would require electrical corporations, pursuant to an order of the PUC, to submit the specified tariff and a violation of this requirement is a crime, this bill would impose a state - mandated local program by creating a new crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for malting that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. 93 Ch. 616 —2— The people of the State of California do enact as follows: SECTION 1. It is the intent of the Legislature that electrical- corporation -owned street light poles, whose electricity use is paid by local governments, be converted to use cost - effective technology that reduces electricity consumption so that a city, county, or city and county may achieve lower utility bills for the electricity used by these street light poles. SEC. 2. Section 384.5 is added to the Public Utilities Code, to read: 384.5. (a) On or before March 1, 2014, the commission shall order electrical corporations to submit, on or before July 1, 2015, a tariff to be used, at the discretion of local governments, to fund energy efficiency improvements in street light poles owned by the electrical corporations to ensure reduced energy consumption for local governments who are streetlight customers covered by these tariffs. (b) The tariff shall be designed to allow local governments to remit the cost of the improvement through the tariff over time, resulting in reduced energy consumption, without shifting costs to nonparticipating ratepayers. The cost of the improvement shall be identified separately rather than included within the charge for electrical service. (c) Notwithstanding subdivision (b), the improvement performed pursuant to the tariff submitted under subdivision (a) shall be eligible for any rebate or incentives available through ratepayer - funded programs intended to increase energy efficiency. (d) The electrical corporation that owns the street light poles shall install or otherwise make the energy efficiency improvements selected by the local government with an appropriately trained workforce in accordance with all applicable safety orders of the commission. (e) For the purposes of this section, the following terms have the following meanings: (1) "Electrical corporation" means an electrical corporation, as defined in Section 218, with at least 100,000 service connections in California. (2) "Street light pole" means a pole, arm, or fixture used primarily for street, pedestrian, or security lighting. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. I 93