BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                                     AB 213


                                                                     Page A


          Date of Hearing:  April 13, 2015


                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE


                                Anthony Rendon, Chair


          AB 213  
          Ridley-Thomas - As Amended April 6, 2015


          SUBJECT:  Energy efficiency:  light emitting diode (LED)  
          lighting products


          SUMMARY:  This bill prohibits the California Energy Commission  
          (CEC) from adopting a color rendering index (CRI) value greater  
          than the CRI value set forth in the United States Environmental  
          Protection Agency (US EPA) ENERGY STAR program as a part of  
          energy efficiency standards for lighting products, unless the  
          commission makes certain findings. Specifically, this bill:  


          a)Establishes a definition for LED products.


          b)Prohibits the CEC from adopting a CRI value greater than the  
            CRI index established in the US EPA's ENERGY STAR program  
            unless studies demonstrate all of the following:


             1)   A CRI value greater than that required by the ENERGY  
               STAR program will increase the rate of consumer adoption  
               and produce greater sales of LED lighting products.
             2)   Energy efficiency gains from consumer adoption of LED  
               lighting products using a CRI value greater than that  
               required by the ENERGY STAR program will exceed the energy  











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               efficiency gains that would result from consumer adoption  
               of LED lighting products meeting the standards set forth in  
               the ENERGY STAR program.


             3)   Consumers are willing to pay an increased purchase price  
               for LED lighting products with a CRI value greater than  
               that required by the ENERGY STAR program. 


             4)   Consumers are willing to pay higher electricity bills to  
               use lower efficiency LED lighting products with a CRI value  
               greater than that required by the ENERGY STAR program. 


          a)Specifies that the prohibition on adopting a higher CRI value  
            applies to voluntary agreements, the CEC appliance efficiency  
            standards, and the CEC building efficiency standards.


          EXISTING LAW:  


          1)Requires the CEC to continuously carry out studies, technical  
            assessments, research projects, and data collection directed  
            to reducing wasteful, inefficient, unnecessary, or uneconomic  
            uses of energy, including improved appliance efficiency.   
            (Public Resources Code 25401)

          2)Requires the CEC to adopt cost-effective energy and water  
            efficiency standards for appliances.  (Public Resources Code  
            25402)

          3)Prohibits the sale of new appliances that do not meet the  
            energy and water efficiency standards adopted by the CEC.   
            (Public Resources Code 25402(c)(2))

          FISCAL EFFECT:  Unknown.












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          COMMENTS:  


           1)Author's Comment.   California has long been a leader in energy  
            efficiency regulations, setting Title 20 standards for various  
            appliances years before the federal government.  The state's  
            Title 24 energy efficiency building regulations specify  
            requirements relating to lighting, insulation, windows,  
            heating, ventilation, and air conditioning (HVAC) systems, and  
            other construction details designed to reduce energy  
            consumption and lower energy bills for consumers. 



            Many peer-reviewed studies have found that cost is the  
            greatest barrier to LED adoption and mandates for higher CRI  
            lamps will further retard consumer use of the technology.  The  
            average CRI 80 LED costs $10, whereas the average CRI 90 LED  
            costs $20.





            Numerous programs administered by the state and local  
            governments and electric utilities in California, and  
            elsewhere, offer consumers incentives or rebates to purchase  
            LED bulbs and lighting devices. 





            CRI 90 LEDs are as much as 42 percent less efficient than CRI  
            80 lamps because more energy is required to maintain the same  











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            light output.  The result is consumers pay more over the  
            lamp's lifetime than they would if they used a CRI 80 lamp.


              


           2)Amendments made to AB 213.   The author amended the bill that  
            was originally heard in this Committee.  The amended bill  
            eliminates the restriction that would have tied the LED  
            standard to the January 2015 Energy Star standards.  The  
            author also eliminated the requirement that studies specified  
            in this bill be peer reviewed.



           3)What's a CRI?    Different light bulbs emit different colors of  
            light.  Lighting color ranges from cool to warm tones, and  
            this is called color temperature.  Color temperature is not an  
            indicator of lamp heat.  CRI is a measure of how accurately an  
            artificial light source displays colors.  CRI is determined by  
            comparing the appearance of a colored object under an  
            artificial light source to its appearance under incandescent  
            light.  The higher the CRI, the better the artificial light  
            source is at rendering colors accurately.  An incandescent  
            bulb is the reference light source and, as such, has a CRI of  
            100.  High (above 80) CRI is preferred in the home. ENERGY  
            STAR requires that qualified fixtures have lamps with CRI  
            above 80.



           4)What is ENERGYSTAR?   ENERGY STAR is a US EPA voluntary program  
            that has several elements, one of which is a voluntary  
            certification of products that meet specified energy  
            performance standards.  Manufacturers who voluntarily meet the  
            requirements can offer those products with an ENERGY STAR  
            label.  In order to earn the label, ENERGY STAR products must  
            be third-party certified based on testing in EPA-recognized  











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            laboratories.  In addition to up-front testing, a percentage  
            of all ENERGY STAR products are subject to "off-the-shelf"  
            verification testing each year.  The goal of this testing is  
            to ensure that changes or variations in the manufacturing  
            process do not undermine a product's qualification with ENERGY  
            STAR requirements.



            The EPA periodically updates the requirements for certifying  
            products for ENERGY STAR label.


           


          5)Not all LEDs are alike.   According to the ENERGY STAR  
            website,<1> "after less than a year of use, a poorly designed  
            LED product can flicker, shift in color, look dim, offer  
            uneven light, or continue to use power when turned off, among  
            other problems."  They caution that bad design can lead to a  
            wide range of problems, some immediately observable and some  
            not, and that some poorly designed products come with  
            exaggerated claims while failing to deliver on the quality  
            specifications.
            In 2012, the California Public Utilities Commission (PUC)  
            adopted a decision<2> that directed investor owned utilities  
            to only propose rebates for general service screw base LED  
            products that are consistent with quality standards developed  
            by the CEC.


           6)CEC Voluntary Standard.   In 2012 the CEC adopted a voluntary  
          ---------------------------
          <1>  https://www.energystar.gov/index.cfm?c=ssl.pr_why_es_com  


          <2>  http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/166830.pdf  












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            LED standard requiring a CRI of 90 or above.  At that time  
            Philips (a major lighting manufacturer) commented that a  
            higher CRI could lead to increased cost and worsening color  
            consistency.  They also pointed out that their market studies  
            are showing that customers prefer the product with the lower  
            (80) CRI and expressed concern that a 90 CRI requirement would  
            result in a lower customer adoption rate.  Rebuttal to these  
            arguments were offered by a Professor Lorne Whitehead, who  
            also served on the Board of the International Commission on  
            Illumination (CIE), who argued that Philips was wrong in these  
            assertions and that higher CRI will lead to less color  
            distortion and save energy.





           7)CEC Proposed Mandatory Regulation.   In September 2014, the CEC  
            issued a staff proposal to establish mandatory regulations of  
            LED bulbs in three ways:  the efficiency, the CRI, and Color  
            Correlated Temperature (Color Correlated Temperature is a  
            measure of a light's "warmth").  Staff's proposal allows for  
            tradeoffs between one another, and proposed implementation is  
            in two tiers, with more stringent requirements in Tier 2.   
            Each tier is composed of a minimum compliance equation and  
            bounding conditions on how low efficiency and CRI can be.  The  
            staff proposes Tier I standards to take effect January 1, 2017  
            and Tier II standards to take effect January 1, 2019.  The  
            staff proposal documents the potential energy savings, cost of  
            manufacturing, and net benefits to California customers.





            According to the CEC, CRI "is an imperfect color metric,  
            mainly because of potential inaccuracies with red colors.  The  
            voluntary LED quality specification adds a requirement for  
            performance with red colors.  The lighting world has been  











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            working for years on alternative color metrics but has not yet  
            reached consensus on an improvement to CRI.  The front-runner  
            alternative is Color Quality Scale (CQS), developed by the  
            National Institute of Standards and Technology (NIST).  When  
            an improved color metric is agreed to by the lighting  
            industry, CEC would analyze and consider it for recognition  
            and incorporation."  Importantly, the CEC points out that a  
            NIST study found that "CQS provides scores consistent with the  
            CRI for most recent phosphor type LED products and traditional  
            discharge lamps."  The CEC regulatory process allows  
            stakeholders to make comments on regulatory proposals and  
            offer suggestions on changes to the proposed regulations.



           8)Can you get a rebate for an LED bulb that uses more  
            electricity than a similar LED bulb?   The PUC explains that  
            the IOU rebates offered for various LED bulbs are not  
            necessarily based solely on energy consumption (wattage).  The  
            rebates may be based on a variety of factors, for example,  
            ensuring rebates are available for a range of different  
            products with different CRI indices because some customers may  
            make their product choice on something other than price.  This  
            is to help ensure that customer satisfaction with the product  
            will lead to greater market adoption.
           9)Double referred.   AB 213 is double referred to Natural  
            Resources.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Los Angeles County Economic Development Corporation












                                                                     AB 213


                                                                     Page H



          Phillips Lighting




          Opposition


          None on file




          Analysis Prepared by:Sue Kateley / U. & C. / (916) 319-2083