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Calif. Governor Davis signs executive orders to provide power to California

SACRAMENTO, April 27, 2001—Governor Gray Davis has signed three executive orders to increase stabilization, conservation and generation of power in California.

Many numerous and complicated statutes, regulations, policies and procedures are delaying deployment of the energy conservation funding outlined in SB 5X and AB 29X signed by the Governor two weeks ago. Executive Order D-34-01 will speed up implementation of the measures.

Together, the two bills provide over $850 million for energy conservation and distributed generation programs designed to save over 2,000 megawatts this summer. With the Executive Order, the Energy Commission will not have to go through the cumbersome process of guideline adoption to approve funding. The programs in the demand reduction program that will be streamlined included:

* Public Agency Loans and Grants (ECAA);

* Time-Of-Use and Real-Time Meters;

* Municipal Program; and

* Cool Roofs/Building Materials

In addition, Davis signed Executive Order D-33-01 to extend the conservation rebate of the “20/20” program to the customers in the territory serviced by the San Diego Gas and Electric Company. The program is designed to help the state avoid the likelihood of blackouts this summer and reward consumers who significantly conserve energy. In addition, it could save the state up to $1.3 billion in power costs by reducing the amount of electricity the state must buy during expensive summer peak periods.

Executive Order D-32-01

In Executive Order D-32-01, Governor Davis orders the transfer of funds from the Energy Commission to the Department of Water Resources for implementation of the power plant construction incentive program. Incentives will include:

* $5,000 per megawatt (MW) of average electrical output on the first 100 MW and $2,500 per MW for each MW above 100 MW, if brought on-line by July 1, 2001;

* $4,000 per MW of average electrical output on the first 100 MW and $2,000 per MW for each MW above 100 MW, if brought on-line between July 2, 2001 and August 1, 2001; and

* $3,000 per MW of average electrical output on the first 100 MW and $1,500 per MW for each MW above 100 MW, if brought on-line between August 2, 2001 and August 31, 2001.