BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 454
                                                                  Page 1

          SENATE THIRD READING
          SB 454 (Pavley)
          As Amended  August 26, 2011
          Majority vote 

           SENATE VOTE  :24-15  
           
           NATURAL RESOURCES   6-3         UTILITIES & COMMERCE           
          9-4                 
           
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          |Ayes:|Chesbro, Brownley,        |Ayes:|Bradford, Fletcher,       |
          |     |Dickinson, Hill, Monning, |     |Buchanan, Fong, Fuentes,  |
          |     |Skinner                   |     |Furutani, Roger           |
          |     |                          |     |Hernández, Huffman,       |
          |     |                          |     |Skinner                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Grove, Halderman  |Nays:|Beth Gaines, Knight,      |
          |     |                          |     |Nestande, Valadao         |
          |     |                          |     |                          |
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           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Blumenfield,     |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Gatto, Hall, Hill, Lara,  |     |                          |
          |     |Mitchell, Solorio         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |     |                          |
          |     |Nielsen, Norby, Wagner    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the California Energy Commission (CEC) to 
          adopt an administrative enforcement process, including civil 
          penalties, for violations of its appliance efficiency standards. 
           Requires utility energy efficiency rebates to be provided only 
          if work complies with applicable permitting and contractor 
          licensing requirements.  Specifically,  this bill  :  
           
          1)Authorizes the CEC to establish an administrative enforcement 
            process for violations of its appliance efficiency standards, 








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            including administrative civil penalties up to $2,500 for each 
            violation, in compliance with existing law governing 
            administrative hearings and adjudication.

          2)Authorizes the CEC to refer violations to the Attorney General 
            to petition a court to enjoin the violation, and authorizes a 
            court to grant injunctive relief and assess a civil penalty up 
            to $2,500 for each violation.

          3)Requires penalties to be deposited into the Appliance 
            Efficiency Enforcement Subaccount, which is established by the 
            bill, to be expended by the CEC, upon appropriation, for 
            appliance efficiency enforcement and public education.

          4)Provides that a CEC-imposed civil penalty shall be subject to 
            judicial review by petition for writ of mandate in the 
            superior court.

          5)Provides that a person subject to a CEC-imposed civil penalty 
            shall not be liable for a court-imposed civil penalty.

          6)Prohibits the CEC from assessing a penalty against a party 
            that has submitted certification of a product's compliance on 
            which CEC has yet to make a determination.

          7)Prohibits the CEC from taking an enforcement action until 60 
            days after its regulations are published in the California 
            Register and an alleged violator has had 30 days after written 
            notice to comply with any regulatory requirements.

          8)Requires the court, upon granting relief to the CEC for an 
            action brought to enforce its appliance efficiency standards, 
            to award the CEC its reasonable costs in investigating and 
            prosecuting the action.

          9)Requires that any energy efficiency rebate or incentive 
            offered by a public utility (i.e., investor-owned electrical 
            and gas corporations regulated by the Public Utilities 
            Commission) be provided only if work complies with applicable 
            permitting and contractor licensing requirements.

           EXISTING LAW  :

          1)Requires the CEC to take specified actions to reduce the 
            wasteful, uneconomic, inefficient, or unnecessary consumption 








                                                                  SB 454
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            of energy, including adopting energy and water efficiency 
            standards for appliances that the CEC determines use a 
            significant amount of energy or water on a statewide basis.

          2)Prohibits the sale of any new appliance unless it is certified 
            by the manufacturer to be in compliance with the CEC 
            standards.

          3)Requires the standards to be drawn so that they do not result 
            in any added total costs for consumers over the designed life 
            of the appliance.

          4)Provides that, if the CEC finds any actual or imminent 
            violation of the provisions of law relating to CEC's authority 
            or operations, the Attorney General is required to petition a 
            court to enjoin the violation. 

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, minor special fund costs in the tens of thousands of 
          dollars to the CEC for regulations and enforcement. 

           COMMENTS  :  Among its regulatory powers, the CEC has authority to 
          adopt regulations describing the standards for minimum levels of 
          efficiency for appliances that use a significant amount of 
          energy or water.  These regulations include standards for both 
          federally-regulated appliances and non-federally-regulated 
          residential and commercial appliances including water heaters, 
          clothes washers, dishwashers, traffic signals, lighting, and 
          heat and air conditioning systems to be sold in California.  The 
          CEC's appliance regulations are designed to achieve significant 
          energy savings state-wide that are feasible, attainable, and do 
          not result in added costs to the consumer for the estimated 
          lifetime of the regulated appliance.  With one exception (power 
          plant certification), the CEC doesn't have administrative civil 
          penalty authority and must refer enforcement matters to the 
          Attorney General to petition a court to grant injunctive relief 
          and/or impose civil penalties.  
           
          According to the author, a recent survey suggests half of 
          appliances sold in California have not properly certified to 
          meet California's energy efficiency standards. The high number 
          of manufacturers that fail to certify appliances means that 
          Californians cannot be sure they are avoiding energy-hog 
          appliances and puts compliant manufacturers at a disadvantage. 
          These standards are key to minimizing California's energy needs 








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          and this bill will allow the CEC to ensure compliance. 


           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092 


                                                                FN: 0002329