BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1109
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1109 (Huffman)
          As Amended  June 1, 2007
          Majority vote 

           UTILITIES & COMMERCE              9-3                
          ENVIRONMENTAL SAFETY          5-1
           
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          |Ayes:|Levine, Bass, Blakeslee,  |Ayes:|Huffman, Eng, Evans,      |
          |     |Davis, Dymally, Huffman,  |     |Feuer, Nava               |
          |     |Jones, Krekorian,         |     |                          |
          |     |Richardson                |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Keene, Smyth, Tran        |Nays:|Jeffries                  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Leno, Caballero, Davis,   |     |                          |
          |     |DeSaulnier, Huffman,      |     |                          |
          |     |Karnette, Krekorian,      |     |                          |
          |     |Lieu, Ma, Nava, Solorio,  |     |                          |
          |     |Feuer                     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Walters, Emmerson, La     |     |                          |
          |     |Malfa, Nakanishi, Sharon  |     |                          |
          |     |Runner                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Creates the California Lighting Efficiency and Toxics  
          Reduction Act which would require the Department of Toxic  
          Substances Control (DTSC) to prescribe schedules for reducing  
          the levels of mercury and lead in general purpose lights.   
          Requires the California Energy Commission (CEC) to approve a  
          statewide electrical consumption limit for lighting by 2018 that  
          is equivalent to a 50% reduction in consumption for indoor  
          lighting and a 25% reduction in commercial lighting and outdoor  
          lighting from 2007 levels.  Specifically,  this bill  :
           
          1)Prohibits, on and after January 1, 2010, the sale of general  








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            purpose lights that contain levels of hazardous substances  
            that would result in sale through the in European Union (EU)  
            pursuant to the Reduction of Hazardous Substances (RoHS)  
            Directive.

          2)Requires every manufacturer of general purpose lights sold in  
            California that contain hazardous materials to ensure that a  
            system is in place that provides for the recycling of general  
            purpose lights.

          3)Requires CEC, by December 31, 2008, to adopt minimum energy  
            efficiency standards for all general purpose lights such that  
            by 2018 energy consumption for indoor residential lighting is  
            reduced by 50% and energy consumption for indoor commercial  
            lighting and outdoor lighting is reduced by 25%.

          4)Requires the Department of General Services (DGS) to replace  
            general purpose lights in state facilities that do not meet  
            the efficiency standards developed by CEC within two years of  
            the standards being adopted.

          5)Defines "general purpose lights" to mean lamps, bulbs, tubes,  
            or other devices that provide functional illuminations for  
            indoor residential, indoor commercial, and outdoor use.  
            General purpose lights do not include lights needed to provide  
            special needs lighting for individuals with exceptional needs  
            or a specified list of specialty lighting.
           
          EXISTING LAW  :   

          1)Provides DTSC authority over the management and disposal of  
            universal waste, including flourescent tubes.  

          2)Requires DTSC to adopt regulations to prohibit the sale of  
            certain electronic products in California that are banned from  
            being sold in the EU due to the presence of heavy metals. 

          3)Requires CEC to create energy efficiency standards for new  
            construction and for numerous electronic products. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Special fund costs to DTSC of up to $100,000 for one staff  








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            position to review information submitted by manufacturers  
            demonstrating compliance with the RoHS Directive.

          2)The CEC will incur the following:

             a)   One-time costs of $100,000 for one position plus  
               $300,000 in contract costs to determine baseline energy use  
               from lighting for 2007;

             b)   Contract costs of $500,000 plus ongoing costs of  
               $400,000 for four positions to develop and implement  
               standards, including a database and compliance and  
               enforcement mechanisms; and,

             c)   Contract costs of $500,000 plus ongoing costs of  
               $500,000 for five positions to institute programs and  
               activities to reduce consumption per the specified amounts  
               and to develop recommendations for further recommendations  
               beyond the 2018 deadline.

          3)DGS indicates that the costs to meet the CEC's lighting  
            standards depend on the actual standards.  DGS notes that in a  
            recent two-year period state made purchases totaling almost  
            $2.2 million through the California Lamp Contract, with the  
            majority being for "general purpose lights."  To the extent  
            the new standards impose requirements not included in DGS'  
            current specifications, this could adversely affect  
            competition for the State lamp contract and one-time purchases  
            of lighting products, as some vendors' products might not  
            comply with the new standards, potentially resulting in  
            increased costs.  DGS also notes that, if the new standards  
            required replacement of existing light fixtures to conform to  
            new product designs, this could result in very substantial  
            renovation costs in state facilities.  Finally, DGS indicates  
            that all of these costs could be partially or wholly offset by  
            reduced operating costs due to lower energy consumption,  
            reduced maintenance, and longer lifespans for the light  
            products.

           COMMENTS :  The purpose of this bill is to significantly increase  
          the efficiency of indoor and outdoor lighting systems. CEC  
          reports that completely eliminating inefficient incandescent  
          bulbs will reduce CO2 emissions by 1.82 million metric tons per  
          year. Additionally, the author wants to ensure that  








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          manufacturers of new efficient lighting utilize the latest  
          technology to reduce, and where possible, eliminate the use of  
          toxic heavy metals such as lead and mercury. 

          The most common form of lighting in California today is  
          incandescent lighting.  Almost 2% of all energy consumption in  
          the state comes from incandescent bulbs.  An incandescent bulb  
          works by sending an electrical current through a filament.  The  
          current heats the filament to an extremely high temperature and  
          creates light.  Approximately 95% of the power consumed by an  
          incandescent light bulb is emitted as heat, rather than as  
          visible light, meaning that 95% of the electricity used when a  
          light bulb is turned on is wasted.  Some forms of incandecent  
          lighting such as halogen lights increase efficiency somewhat so  
          that only 91% of the electricity used is lost to heat. 

          CEC already has efficiency standards for lighting. The newest  
          CEC standards, which go into effect on January 1, 2008, require  
          that a bulb that produces 850 lumens (a typical 60 watt bulb)  
          consumes no more than 57 watts. This is about a 5% efficiency  
          improvement from the 2007 usage.  These standards are  
          periodically updated.

          This bill requires CEC to adopt minimum energy efficiency  
          standards for all general purpose lights such that by  2018  
          energy consumption for indoor residential lighting is reduced by  
          50% and energy consumption for indoor commercial lighting and  
          outdoor lighting is reduced by 25%.
          Given the fact that there are products on the market today that  
          improve the efficiency of the most common forms of lighting in  
          California by over 450%, these limits should be easy to meet. 

           Hazardous materials  :  Incandescent light bulbs contain lead and  
          compact florescent light bulbs contain trace amounts of mercury.  
           Even though both type of lights contain hazardous materials,  
          there are no effective disposal or recycling programs to prevent  
          the bulbs and their related toxic materials from ending up in  
          landfills.  Several supporters of this bill believe that before  
          the state makes statutory and regulatory shift to compact  
          fluorescent lighting (CFL), recycling programs need to be  
          developed to make sure these new bulbs do not contaminate  
          landfills. 

          This bill addresses the hazardous material problem by proposing  








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          to stop the sale of lighting in California that does not meet  
          the standards established in the EU pursuant to their RoHS  
          directive.  RoHS, refers to the ban on the use of hazardous  
          substances in electronic products under the EU directive  
          2002/95/EC.  Under the EU RoHS, electronic products containing  
          lead, mercury, cadmium, hexavalent chromium, and two types of  
          brominated flame retardants are banned from sale beginning July  
          1, 2006.  Currently, this ban only applies to products sold in  
          the EU, but it is expected to have a worldwide impact since  
          companies are not expected to create two versions of their  
          products for sale in different markets. 


           Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083 


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