BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 228 -  Huffman                                 Hearing Date:   
          July 7, 2009               A
          As Amended:         June 22, 2009            FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  requires the California Energy Commission (CEC) to  
          adopt minimum energy efficiency standards for all general  
          purpose lights by December 31, 2008.  The standards shall reduce  
          the average statewide electricity consumption by not less than  
          50% from 2007 levels for indoor residential lighting and not  
          less than 25% for outdoor lighting by 2018.

           This bill  requires the CEC to adopt, by December 31, 2011,  
          energy efficiency standards for outdoor lighting of at least 80  
          lumens per watt, which shall be effective not later than January  
          1, 2015.

           Current law  requires the CEC to consult with the Department of  
          Transportation (Caltrans) to ensure that outdoor lighting  
          standards that affect Caltrans are compatible with that  
          department's policies and standards for safety and illumination  
          on state highways.

           This bill  deletes the requirement to consult with Caltrans.

                                      BACKGROUND
           
          Outdoor lighting accounts for 4.4% of the energy consumed in the  
          United States, and is therefore an obvious target for energy  
          efficiency programs.  However, outdoor lighting is generally an  
          off-peak usage, tempering the cost-avoidance and greenhouse gas  
          reduction value of improving outdoor lighting efficiency.

          During the 2000-2001 energy crisis, policymakers viewed enhanced  
          energy efficiency as a critical response for preventing  











          blackouts.  Included in the package of policy responses was a  
          requirement for the CEC to develop outdoor lighting standards.   
          Those standards were developed and adopted into the 2005  
          building code revisions.   The standards include requirements  
          for controls for efficient operation and that most luminaries  
          direct the majority of light toward the ground.  Lamps rated  
          over 100 watts must either be controlled by a motion sensor or  
          have an efficiency of at least 60 lumens per watt.

          Pushing efficiency harder, in 2007 the author carried AB 1109  
          (Chapter 534 of 2007), which required the CEC to adopt minimum  
          energy efficiency standards for all general purpose lights by  
          December 31, 2008, with a goal of reducing energy consumption  
          from outdoor lighting by not less than 25%.  

          The bill applies only to new outdoor lighting devices.   
          Retrofitting is not required.  The bill provides the CEC with  
          some flexibility in establishing the standards, including  
          defining "outdoor lighting" and the adoption of lighting  
          controls.

          Legislation is pending in Congress (HR 1732 - Harman) to  
          establish minimum energy efficiency requirements for outdoor  
          lighting.  An early version of that bill contained the 80 lumens  
          per watt standard; it was deleted from the current version.

                                       COMMENTS
           
              1.   Author Statement  - The author believes that the  
               environmental and economic consequences of our lighting  
               choices are enormous.  Upgrading to longer-lasting, more  
               efficient lights provides significant economic and  
               environmental benefits, including reducing energy demand  
               and related CO2 emissions.  This bill furthers the goal of  
               prior lighting legislation carried by the author, which  
               required the CEC to reduce energy consumption for outdoor  
               lighting by 25% by 2018.

              2.   Blinded by the Light  - If the 80 lumens per watt  
               standard becomes mandatory, other less efficient outdoor  
               lighting devices will not be sold.   Many in the lighting  
               industry are concerned that the 80 lumens per watt standard  
               will severely limit consumer choice and create a  
               competitive advantage for a single lighting firm.   










               Moreover, many in the lighting industry are concerned that  
               the 80 lumens per watt standard is the wrong metric.  They  
               believe it is too simplistic and cannot be applied to the  
               myraid types of outdoor lighting.  They believe it does not  
               consider other lighting goals such as glare reduction,  
               limiting night sky pollution and limiting light trespass  
               onto neighboring properties.  They contend that a better  
               approach is to consider the efficiency of the entire  
               lighting application, rather than just the efficiency of  
               the fixture.  Considering application efficiency means  
               looking at the number and spacing of lighting fixtures and  
               how those fixtures are controlled.

              3.   Analysis Has Not Been Performed  - While raising the  
               minimum efficiency standard for outdoor lights will reduce  
               electric bills, these savings may be offset by higher  
               installed costs and, potentially, increased maintenance  
               costs.  Weighing the ongoing cost savings against higher  
               installed costs should be part of any cost/benefit  
               analysis.  The author's 2007 lighting legislation required  
               that the outdoor lighting standards established by the CEC  
               be technologically feasible and cost effective.  Yet that  
               analysis has not been performed for the 80 lumens per watt  
               standard in this bill.

               Developing energy efficiency standards always results in  
               intra-industry disputes, as with automotive fuel efficiency  
               standards or the television efficiency standards proposed  
               by the CEC.  Those companies who view the standard as  
               benefiting their technology are supportive, those who can't  
               or won't meet the standard oppose it.  The point of energy  
               efficiency standards is to push the envelope, to make  
               industries go where they would not otherwise go.  But in  
               developing those standards there must be a careful analysis  
               to ensure that the standards don't favor a proprietary  
               technology or a particular company, which would result in  
               fewer choices and higher costs for customers.  That type of  
               analysis is the job of regulators such as the CEC, who can  
               hold workshops, accept evidence, commission studies, and  
               get into the details of the technology and the industry.  
               That analysis has not been performed for the 80 lumens per  
               watt standard.

               Improving outdoor lighting efficiency is a widely shared  










               goal, and an 80 lumens per watt minimum lighting efficiency  
               standard may make perfect sense. But there is no evidence  
               to support it.  And there is plenty of industry concern  
               that the standard is infeasible and ill-suited to the goal  
               of reducing outdoor lighting energy usage.  Rather than  
               make the decision that 80 lumens per watt is the  
               appropriate standard,  the author and committee may wish  to  
               direct the question to the CEC, who has the expertise and  
               processes to consider it properly.

                                    ASSEMBLY VOTES
           
          Assembly Floor                     (45-31)
          Assembly Appropriations Committee  (10-5)
          Assembly Natural Resources Committee                            
          (6-3)
          Assembly Utilities and Commerce Committee                       
          (9-5)

                                       POSITIONS
          
           Sponsor:
           
          Philips Lighting Company

           Support:
           
          Breathe California
          Cree, Inc.
          Planning and Conservation League
          Sierra Club California

           Concerns:
           
          Acuity Brands Lighting
          General Electric Lighting
          Illuminating Engineering Society of North America

           Oppose:
           
          Cooper Lighting
          OSRAM Sylvania

          











          Randy Chinn 
          AB 228 Analysis
          Hearing Date:  July 7, 2009