BILL ANALYSIS
AB 2309
Page 1
Date of Hearing: April 17, 2008
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Loni Hancock, Chair
AB 2309 (DeSaulnier) - As Amended: April 1, 2008
SUBJECT : Energy conservation: residential energy efficiency
audit.
SUMMARY : Requires the California Public Utilities Commission
(PUC) to authorize the investor-owned utilities (IOUs) to
provide owner-requested energy efficiency audits and make
recommendations to the owner on cost-effective measures that
would decrease the building's energy usage.
EXISTING LAW :
1)Requires PUC to have each IOU identify a separate rate
component to collect revenue to fund cost-effective energy
efficiency and conservation activities.
2)Requires all electric and natural gas utilities to meet energy
efficiency savings targets established by the California
Energy Commission (CEC) and PUC.
3)Requires all electric utilities, in procuring energy, to first
acquire all available energy efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
4)Requires PUC to impose a surcharge on all natural gas
customers to fund cost-effective energy efficiency and
conservation activities.
5)Requires PUC to permit IOUs to institute a home insulation
assistance and financing program for its residential
customers.
6)Requires IOUs to perform specified home weatherization
services for low-income customers.
THIS BILL :
1)Makes findings and declarations related to the Global Warming
Solutions Act of 2006 (AB 32) and how opportunities for
cost-effective energy efficiency improvements in existing
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residential structures can contribute toward meeting the goals
of AB 32.
2)Requires PUC to authorize, by January 1, 2010, each IOU to
provide a reasonable annual number of owner-requested energy
efficiency audits for owner-occupied residential buildings
constructed prior to January 1, 2006.
3)Requires PUC, in consultation with CEC, to prioritize
cost-effective energy efficiency measures.
4)Requires an IOU to make recommendations to an owner regarding
cost-effective measures to increase the building's energy
efficiency and conservation.
5)Requires PUC to provide annual reports to the Legislature and
CEC that detail the number of owner-occupied residential
buildings that took advantage of the audit program, the amount
of energy savings that would result from all recommendations
of the audits and an estimate of the net energy savings
resulting from the audits.
FISCAL EFFECT : Unknown
COMMENTS :
1)This bill
According to the author, this bill "looks to expand the ways
that residential energy efficiency programs available through
both IOUs and municipal utilities can help inform owners and
sellers of existing homes of efficiency improvements that
[could] yield potentially significant savings on utility bills
as well as [GHG] benefits."
This bill only requires the IOUs to perform energy efficiency
audits when requested by the customer.
2)Background
Currently, utilities and many private entities perform energy
audits when requested by the building owner. An
energy-efficiency audit, also called a feasibility study or
technical assistance report, is typically conducted to identify
technically viable and cost-effective energy projects to reduce
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energy use and operating costs in a building. Auditors evaluate
energy-using equipment and identify ways to enhance operating
efficiency. In the process, they may also resolve occupant
comfort problems and decrease the building's maintenance costs.
State energy policy prioritizes energy efficiency to reduce
energy usage. To reduce energy use in existing buildings, CEC
and most of the utilities provide information on energy
efficiency do-it-yourself audits. CEC issued a booklet directed
at homebuyers that provides information about home energy audits
and rating programs and markets this information through home
warranty company websites. Many of the recommendations are
inexpensive, but produce significant savings. Some low-cost
examples include replacing incandescent light bulbs with compact
fluorescent, using motion sensor controls for exterior lighting,
and caulking, sealing, or applying weatherstriping around
windows and doors.
AB 2021 (Levine), Chapter 734, Statutes of 2006 directed CEC to
develop a statewide estimate of all potentially achievable
cost-effective electricity and natural gas efficiency savings
and to establish statewide annual targets for energy efficiency
and demand reduction over 10 years. In keeping with this
requirement, CEC, in its Integrated Energy Policy Report, states
that it "strongly supports capturing all cost-effective
efficiency savings potential" and recommends pursuing
legislation that would require energy audits and cost-effective
levels of efficiency improvements at the time of sale of a
building. In addition, CEC's Report on Energy Efficiency in
Existing Buildings recommends that the state should begin
requiring the disclosure of home energy ratings when a house is
sold. Both recommendations are based on CEC's evaluation of the
potential savings achieved if cost-effective energy efficiency
measures were applied to existing buildings; CEC calculates a
savings of 9% of statewide electricity consumption, 11% of peak
demand, and 5% of natural gas consumption.
The PUC has adopted three programs designed to move all new
residential and commercial construction to a zero net-energy
standard so that the energy the building consumes is offset by
the amount of energy it produces. The goal of this program is
to reach zero net-energy consumption in residential construction
by 2020 and in commercial construction by 2030.
3)Related legislation
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AB 2678 (Nu?ez) would require the CEC to establish an ongoing
proceeding to develop requirements for time-of-sale energy
efficiency audits for residential and commercial buildings.
This bill is currently pending before the Assembly
Appropriations Committee.
4)Double referral
This bill was heard by the Assembly Utilities and Commerce
Committee on April 14 and passed out on a 12-0 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Realtors
California Building Industry Association (sponsor)
Opposition
None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092