BILL ANALYSIS Ó
AB 1094
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Date of Hearing: April 20, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
AB 1094
(Williams) - As Amended April 6, 2015
SUBJECT: Energy usage: plug-in equipment
SUMMARY: This bill requires the California Energy Commission
(CEC), in collaboration with the California Public Utilities
Commission (CPUC), to set greenhouse gas reduction targets for
plug-in equipment based on analysis of plug-in equipment energy
consumption. Specifically, this bill:
a)Requires the CEC, in collaboration with the CPUC, to:
1) Conduct an analysis of plug-in equipment electricity
consumption and trends, drawing on existing data where
appropriate.
2) Set statewide reduction targets for greenhouse gasses
emitted through production of electricity consumed by
plug-in equipment.
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3) Develop, track the progress of, revise and update an
implementation plan to achieve those statewide targets.
4) Track and report on progress of implementation plan to
achieve those statewide targets.
a)Requires the CPUC, in collaboration with the CEC, to work with
stakeholders to address challenges to the achievement of those
statewide targets.
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)
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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))
FISCAL EFFECT: Unknown.
COMMENTS:
1)Author's Statement. "Plug-in equipment is responsible for
more than two thirds of residential electricity consumption
and produces nearly 21 percent of the state's total greenhouse
gas emissions.
The CEC and CPUC have an array of existing programs including
research and development, appliance standards, and efficiency
programs aimed at increasing energy efficiency statewide.
However agency reports show that plug-in equipment only
represents approximately 20 percent of efficiency programs and
standards savings, a large gap with their share of
consumption. There is the potential to scale up these efforts
to capture a larger share of cost-effective energy savings in
plug-in equipment. Quantified goals will drive state agencies
to perform target-driven planning, working with stakeholders
to utilize the most effective strategies available to
transform the plug-in equipment market at the pace and scale
required to meet California's energy and climate goals.
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"There are many existing goals for reducing energy usage
generally. There are energy efficiencies for select
appliances but none cover the spectrum of plug-in equipment."
2)Need for the bill: NRDC states that greater plug-in equipment
efficiency offers the potential for an upwards of
approximately $2.5 million in additional avoided electricity
bills by 2030. AB 1094 requires collaboration between the CEC
and CPUC to address these problems and embrace the opportunity
for savings. The bill encourages both Commissions to approach
energy efficiency strategically and comprehensively, requiring
that each embraces available tools in an effective and
resourceful way.
3)Much already done: The CEC has been proposing and adopting
appliance regulations since its inception in 1977. As new
product designs, new information about products, and new
information about energy usage become available, the CEC will
periodically propose new regulations or update existing
regulations. The CEC continuously researches, investigates,
assesses, and identifies appliance and end use products which
may ultimately become the subject of an appliance regulation.
Current regulations cover about 23 categories of appliances,
including:
Air conditioners, heaters, and fans,
Battery charger systems,
Clothes washers and dryers,
Cooking products and food service equipment,
Dishwashers,
Distribution transformers,
Electric motors,
Lighting products,
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Plumbing fittings and fixtures,
Pool and spa equipment,
External power supplies,
Refrigerators, refrigerator-freezers, and freezers,
Televisions, consumer and video equipment, and
Water heaters
These regulations already include plug-in equipment, including
power tools, cordless phones, and many other plug-in devices.
In last year's analysis of the author's AB 2529, the committee
raised questions about what further requirements of the CEC
could accomplish. Though similar, this year's AB 1094 aims
more generally at coordinating existing efforts rather than
developing new ones.
1)Will the remaining sources of plug loads be significant ?
Technologies that are not yet on the list of regulated plug
loads include set-top boxes used to access media entertainment
and video game consoles. A growing trend is for internet
services to replace these devices. This is known as
"cloud-based streaming."
According to a recent report by the CPUC, California's average
residential customer uses about 557 kilowatt-hours per
month.<1> The report found that household income is an
important determination in electricity usage: "combined usage
of households in moderate and high-areas is almost four times
larger in the summer (five times larger in the winter) than
the combined summer usage in very low and low-income areas."
--------------------------
<1>
http://www.cpuc.ca.gov/NR/rdonlyres/8AEF5361-FC3B-4518-A88A-72E30
10263A4/0/PPDComparativeAnalysisofUtilityServicesRatesinCAFinal2.
pdf
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Perhaps higher income households could afford newer, more
energy efficient plug-in devices than lower income households,
which would infer lower energy usage in higher income
households. Perhaps higher income households have more
plug-in devices than lower income households. It is possible
that higher income households have larger homes than lower
income households with proportionally higher heating and air
conditioning demand.
It's unclear whether plug loads from set top boxes and video
game consoles are a significant driver in electricity
consumption or whether their use may be waning in favor of new
entertainment delivery systems. Having the CEC look into this
further would be worthwhile.
2)Greenhouse gas emission targets. AB 1094 would require the
CEC to set statewide targets for the greenhouse gases emitted
by the generation of the electricity consumed by plug-in
equipment. Current law provides the Air Resources Board with
authority to set greenhouse gas emission standards. CEC
authority to set greenhouse gas emissions may unnecessarily
complicate and blur the lines of authority with respect to
setting GHG standards and enforcing them.
The author may wish to consider an amendment to focus on the
devices that consume the highest amount of electricity, and
strike the requirement for the CEC to set GHG standards for
plug in equipment.
25327(b) (1) Conduct an analysis of plug-in equipment
electricity consumption, including appliances, electronics,
and miscellaneous electric loads, to assess current use and
trends. The commission shall draw on existing data and already
funded studies and data where appropriate to limit costs and
reduce the time required to complete the analysis. The
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analysis shall focus on the top 80 percent of plug-in
equipment average annual electricity consumption.
(2) Before January 1, 2018, set statewide long term energy
efficiency targets for the greenhouse gases emitted by the
generation of the electricity consumed by plug-in equipment ,
in support of Executive Order S-3-05 to reduce greenhouse
gases to 80 percent below 1990 levels by 2050 . The commission
may also set intermediate 2030 and 2040 targets.
3)Related Legislation:
AB 2529 (Williams, 2014): Required the CEC and the PUC to
perform a study of energy usage by plug-in equipment and
develop an implementation plan to achieve specified reductions
in energy consumption by plug-in equipment by 2030. Died,
Assembly Appropriations Committee.
AB 454 (Pavley, Chapter 591, Statutes of 2011): Required that
a party protected by a civil protective order be notified
prior to a hearing to modify that order or terminate it before
its expiration date.
AB 1109 (Huffman, Chapter 534, Statutes of 2007): Enacted the
California Lighting Efficiency and Toxics Reduction Act.
SB 332 (Corbett, 2007): Required the commission, not later
than to develop a priority list of appliances for review by
the commission for test procedures and efficiency standards,
and to develop testing procedures for televisions and computer
monitors in the active mode. Died in Assembly Appropriations
Committee.
AB 2021 (Levine, 2006, Chapter 734, Statutes of 2006):
Requires all electric and natural gas utilities to meet energy
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efficiency savings targets established by the California
Energy Commission (CEC) and the California Public Utilities
Commission (PUC).
4)Double Referral: This bill has been double referred to the
Committee on Natural Resources.
REGISTERED SUPPORT / OPPOSITION:
Support
Natural Resources Defense Council (Sponsor)
California Retailer's Association
California Energy Efficiency Industry Council
California League of Conservation Voters
Coalition for Clean Air
Communities for a Better Environment
Environment California
Environmental Defense Fund
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Environmental Entrepreneurs
Global Green
San Diego Gas and Electric
Sierra Club
US Green Building Council
Opposition
None on file.
Analysis Prepared by:Allegra Roth / U. & C. / (916) 319-2083
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