BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 454
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          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 454 (Pavley) - As Amended:  July 12, 2011 

          Policy Committee:                             Natural 
          ResourcesVote:6-3
                       Utilities and Commerce                 9-4

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

           SUMMARY  

          This bill authorizes the California Energy Commission (CEC) to 
          adopt regulations to enforce compliance with the state's 
          appliance efficiency standards.  Specifically, this bill:

          1)Authorizes CEC to adopt regulations to enforce appliance 
            efficiency standards, including assessment of civil penalties 
            of up to $2,500 per violation.

          2)Authorizes CEC to refer a violation of the state's appliance 
            efficiency standards to the Attorney General (AG), who may 
            petition a court to stop the violation and impose civil fines 
            up to $2,500 per violation.

          3)Specifies that a person shall not face civil penalties for a 
            violation from both the CEC and AG.

          4)Establishes the Appliance Efficiency Enforcement Subaccount 
            within the Energy Resources Program Account (ERPA) and directs 
            penalty revenue to that subaccount.

          5)Makes monies in the subaccount available, upon appropriation, 
            for public education and enforcement of the appliance 
            efficiency standards and CEC's related regulations.  

          6)Requires that any rebate or incentive offered by a public 
            utility for energy efficiency improvements be provided only if 
            the recipient certifies the project complies with permitting 
            requirements and that any contractor performing the project 
            has an appropriate license.








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          7)Specifies the provisions of this bill do not create or expand 
            authority for a public utility to enforce building energy or 
            water efficiency standards.


           FISCAL EFFECT  

          Minor special fund costs in the tens of thousands of dollars to 
          the CEC for regulations and enforcement. 

           



          COMMENTS  

           1)Rationale  .  The author asserts that California's appliance 
            efficiency standards deliver cost-effective energy savings to 
            consumers and are important to the state's efforts to manage 
            energy consumption, conserve natural resources and improve 
            quality of life.  The author, citing a recent survey, contends 
            that half of the appliances sold in California are not 
            properly certified to meet the state's appliance efficiency 
            standards.  The author argues this noncompliance disadvantages 
            compliant manufacturers and misleads consumers, as well as 
            hampering the goals behind the appliance efficiency standards.

           2)Background.   The CEC may regulate standards for minimum levels 
            of efficiency for appliances that use a significant amount of 
            energy or water, as determined by CEC, for which there is no 
            federal minimum standard that would preempt a California 
            standard.  New and upgraded standards must be technologically 
            feasible and attainable and must not result in any added total 
            costs to the consumer over the designed life of the appliances 
            concerned.  

            A report commissioned by CEC and released in May of this year 
            found varying levels of compliance with the standards.  CEC 
            does not have the authority to impose civil penalties to 
            enforce compliance with the standards and refers cases to the 
            AG for enforcement.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081 









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