BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1530
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          AB 1530 (Skinner)
          As Amended April 20, 2009
          Majority vote 

           NATURAL RESOURCES   6-3         APPROPRIATIONS      12-5        
          |Ayes:|Skinner, Brownley,        |Ayes:|De Leon, Ammiano, Charles  |
          |     |Chesbro,                  |     |Calderon, Davis, Fuentes,  |
          |     |De Leon, Hill, Huffman    |     |Hall, John A. Perez,       |
          |     |                          |     |Price, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Krekorian       |
          |     |                          |     |                           |
          |Nays:|Gilmore, Knight, Logue    |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Miller,                    |
          |     |                          |     |Audra Strickland           |
          |     |                          |     |                           |
           SUMMARY  :  Requires the Air Resources Board (ARB) to adopt  
          protocols for the evaluation, measurement, and verification of  
          any greenhouse gas (GHG) reduction measure that relies on energy  
          efficiency, in consultation with the Public Utilities Commission  
          (PUC), California Energy Commission (CEC), and energy efficiency  

           EXISTING LAW  , pursuant to AB 32 (Nunez), Chapter 455, Statutes  
          of 2006, required ARB 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.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, one-time special fund costs of at least several  
          hundreds of thousands of dollars during 2009-2010 through  
          2011-2012, to ARB, CEC, and PUC to develop the protocols.  (Air  
          Pollution Control Fund, Energy Resources Programs Account, and  
          Public Utilities Commission Utilities Reimbursement Account) 

           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  


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          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 PUC has taken the lead in energy  
          efficiency, its fundamental purpose is to ensure safe and  
          reliable utility services at just and reasonable rates.  PUC was  
          not designed to implement long-term, billion dollar programs  
          that rely heavily on specific expertise in diverse fields,  
          including engineering, behavioral 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 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  

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  


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