BILL ANALYSIS Ó AB 1094 Page A 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. AB 1094 Page B 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) AB 1094 Page C 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. AB 1094 Page D "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, AB 1094 Page E 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 AB 1094 Page F 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 studiesand datawhere appropriate to limit costs and reduce the time required to complete the analysis. The AB 1094 Page G 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 forthe greenhouse gases emitted by the generation ofthe 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 AB 1094 Page H 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 AB 1094 Page I 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 AB 1094 Page J