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
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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.
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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.
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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.
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