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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