BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1530
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 1530 (Skinner) - As Amended:  April 20, 2009 

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires ARB to adopt protocols for the evaluation,  
          quantification, and verification of any greenhouse gas (GHG)  
          emission reduction measure that relies on electrical energy  
          efficiency.  Specifically, this bill:

          1)Requires ARB to adopt protocols for the evaluation,  
            quantification, and verification of any GHG reduction measure  
            that relies on electrical energy efficiency.
           
          2)Directs ARB, in adopting these protocols, to consult with the  
            Public Utilities Commission (PUC), the California Energy  
            Commission (CEC), and experts in the field of energy  
            efficiency.

           FISCAL EFFECT  

          One-time costs of at least several hundreds of thousands of  
          dollars during 2009-10 through 2011-12 to ARB, CEC and PUC to  
          develop the protocols called for by this bill.  (Air Pollution  
          Control Fund, Energy Resources Programs Account, and Public  
          Utilities Commission Utilities Reimbursement Account.)

           COMMENTS  

           1)Rationale  .  The author notes that California is currently a  
            recognized leader in energy efficiency.  The author further  
            states that, nonetheless, there is no single, central entity  
            with the mandate, independence or expertise to develop and  
            implement clear technical standards for evaluation,  
            measurement and verification (EM&V) of GHG emissions  








                                                                  AB 1530
                                                                  Page  2

            reductions associated with gains in energy efficiency.  The  
            author contends this bill will better ensure that ARB will  
            develop and implement clear technical standards for energy  
            efficiency measures central to ARB's plan to reduce GHG  
            emissions, as required by AB 32.
            
           2)Background.   AB 32 (N??ez, Chapter 455, Statutes of 2006)  
            requires California to limit its emissions of GHGs so that, by  
            2020, those emissions are equal to what they were in 1990. To  
            that end, AB 32 requires ARB to quantify the state's 1990 GHG  
            emissions and to adopt, by January 1, 2009, a "scoping plan"  
            that describes the board's plan for achieving the maximum  
            technologically feasible and cost-effective reductions of GHG  
            emissions reductions by 2020.  In keeping with AB 32, ARB  
            adopted its AB 32 scoping plan in December of 2008.

            Consistent with AB 32, the scoping plan includes both direct  
            regulatory measures and market-based compliance mechanisms.   
            Of the GHG emissions reductions that ARB expects to come from  
            those measures, about 15% would be the result of increases in  
            energy efficiency.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081