Bill author: Assembly Member Mary Salas (D-79)

SUMMARY
This bill requires the California Public Utilities Commission (PUC) to report to the Legislature the outcome of a pilot project the PUC established to determine whether cost-effective energy efficiency could be achieved by water conservation projects, and make recommendations as to whether the utilities could achieve cost-effective energy efficiency improvements via water conservation projects.

WHY IT MATTERS
The current methods used to account for water and energy savings do not address the avoided cost of energy that is not needed due to improvements to water use efficiency resulting from water and power utility partnerships. When considering energy efficient improvements for water conservation projects, all energy spent in the effort to bring water supplies to end-users must be taken into account.

If utilities provide energy-efficient water conservation methods to customers then these methods must prove to be cost effective. This will ensure that customers can experience benefits from saving water in the form of lowered rates, giving them direct positive feedback for their conservation efforts.

THE GOALS OF AB 2404 INCLUDE:
• Ultimately, leading to appropriate accounting for water and energy savings when projects conserve both energy and water. The PUC will determine whether water conservation and less energy intensive water measures should be allowed to compete for utility energy efficiency grants and incentive funding, based on the results of the pilot program that is required.