BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1530
                                                                  Page 1

          Date of Hearing:  April 27, 2009

                                Nancy Skinner, Chair
                   AB 1530 (Skinner) - As Amended:  April 20, 2009
          SUBJECT  :  Greenhouse gas (GHG) emission reduction measures

           SUMMARY  :  Requires the Air Resources Board (ARB) to adopt  
          protocols to validate energy efficiency measures claimed as GHG  

           EXISTING LAW  requires ARB, pursuant to AB 32, to adopt a  
          statewide GHG emissions limit equivalent to 1990 levels by 2020  
          and adopt regulations to achieve maximum technologically  
          feasible and cost-effective GHG emission reductions.  

           THIS BILL  requires ARB to adopt protocols for the evaluation,  
          measurement and verification of any GHG reduction measure that  
          relies on energy efficiency, in consultation with the Public  
          Utilities Commission (PUC), Energy Commission, and energy  
          efficiency experts.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

          California's energy efficiency programs have developed over the  
          past thirty years through a combination of legislative mandates,  
          PUC policies and initiatives, and actions of public and  
          privately owned utilities.  While California is currently a  
          recognized leader in energy efficiency, there is no central  
          entity or organization within the state that has the mandate,  
          independence or expertise to develop and implement clear  
          technical standards for evaluation, measurement and verification  
          (EM&V) of energy efficiency measures.  

          It is not easy to implement energy efficiency programs, much  
          less successful programs that ensure long-term sustained savings  
          at a reasonable cost.  While the PUC has taken the lead in  
          energy efficiency over the past decades, its fundamental purpose  
          is to ensure safe and reliable utility services at just and  
          reasonable rates.  The PUC was not designed to implement  
          long-term, billion dollar programs that rely heavily on specific  
          expertise in diverse fields, including engineering, behavioral  


                                                                  AB 1530
                                                                  Page 2

          science, building construction and management, and economics.   
          PUC staff positions are largely designated for policy analysts  
          and the engineering positions are primarily geared towards  
          utility plant issues.

          Because the PUC is not required to publish regulations or  
          standards, the EM&V process, protocols and methodologies are  
          unpublished and are therefore difficult to find and understand.   
          These issues will become even more important as the state  
          attempts to measure reductions in GHG emissions from policies  
          and programs, and in attempting to value these emissions  
          reductions for the purpose of a cap and trade program.

          In its AB 32 Scoping Plan, ARB is counting on increased energy  
          efficiency for over 15% of the GHG reduction measures necessary  
          to meet the 2020 limit.  Most of the tons are expected to come  
          from additional building and appliance efficiency, to reduce  
          electricity demand and natural gas use.  This will require  
          further improvements in efficiency standards for both buildings  
          and appliances, as well as additional spending for rebates and  
          other incentives.

          This bill requires ARB to adopt protocols for EM&V to assure  
          that energy efficiency measures claimed as GHG reductions are  


          None on file

          None on file

          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)