BILL ANALYSIS Ó AB 1094 Page 1 Date of Hearing: April 27, 2015 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 1094 (Williams) - As Amended April 6, 2015 SUBJECT: Energy usage: plug-in equipment SUMMARY: Requires the California Energy Commission (CEC), in consultation with the California Public Utilities Commission (CPUC), to conduct an analysis of plug-in equipment energy consumption and develop an implementation plan to achieve specified energy efficiency targets. EXISTING LAW: 1)Requires 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. 2)Requires CEC to adopt cost-effective energy and water efficiency standards for appliances. 3)Requires CEC to adopt energy efficiency standards for battery chargers. Standards for consumer chargers went into effect on February 1, 2013, and standards for industrial chargers went into effect on January 1, 2014. AB 1094 Page 2 4)Prohibits the sale of products that do not meet efficiency standards adopted by CEC. 5)Authorizes CEC to issue an administrative enforcement process for violations of its appliance efficiency standards, including administrative civil penalties up to $2,500 for each violation, in compliance with existing law governing administrative hearings and adjudication. THIS BILL: 1)Requires CEC, in collaboration with CPUC, to: a) Conduct an analysis of plug-in equipment electricity consumption and trends, drawing on existing data where appropriate. Requires that the analysis be focused on the top 80% of plug-in equipment electricity consumption; b) On or before January 21, 2018, set statewide reduction targets for greenhouse gasses (GHGs) emitted through production of electricity consumed by plug-in equipment; c) Develop, revise, and update an implementation plan to achieve the statewide targets; and, d) Track and report on the progress of the implementation plan to achieve the statewide targets. 2)Requires CPUC, in collaboration with CEC, to work with stakeholders to address challenges to the achievement of the AB 1094 Page 3 statewide targets. 3)Defines "plug-in equipment" as an electrical device that plugs into a power outlet, including, but not limited to, household appliances, electronic products, miscellaneous electrical loads, portable and other plug-in HVAC equipment, and commercial plug-in appliances. Specifies that "plug-in equipment" does not include non-plug-in HVAC equipment, lighting, infrastructure loads wired directly to the building electrical system, wired smoke or carbon monoxide detectors, lighting switches, and electric vehicles. 4)States related legislative findings and intent. FISCAL EFFECT: Unknown COMMENTS: 1)This bill. According to the author: Plug-in equipment is responsible for nearly 60% of residential and 16% of commercial electricity consumption in California. Across both sectors, plug-in equipment consumes the equivalent annual output of 23 500-megawatt power plants. This is projected to increase to 27 power plants by 2030. The CEC and CPUC have an array of existing programs, including research and development, appliance standards, and efficiency programs, aimed at increasing energy AB 1094 Page 4 efficiency statewide. 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. 2)CEC appliance standard regulations. CEC began adopting appliance regulations at its inception in 1977. As new product designs, new information about products, and new information about energy usage become available, CEC periodically proposes new regulations and updates existing regulations. Current law requires CEC to research, investigate, assess, and identify appliances and other products that should be subject to appliance efficiency standards. CEC is preempted from adopting energy efficiency regulations on products that are already regulated for their energy usage by the federal government. Current CEC regulations include 23 categories of appliances, including: air conditioners, heaters, and fans; battery chargers; clothes washers and dryers; cooking products and food service equipment; dishwashers; distribution transformers; electric motors; lighting products; plumbing fittings and fixtures; pool and spa equipment; external power supplies; refrigerators, refrigerator-freezers, and freezers; televisions, consumer audio and video equipment; and, water heaters. These existing regulations include plug-in equipment, including power tools, lights, electronics, cordless phones, and other plug-in devices. CEC has developed draft regulations for the following appliances: AB 1094 Page 5 a) Faucets, toilets, and urinals, April 2014; b) Air filters and dimming ballasts, April 2014; c) Light emitting diode (LED) lamps and multifaceted reflector (MR) lamps, May 2014; d) Pool pump motors and portable electric spas, August 2014; e) Computers, monitors, and displays, November 2014; f) Network equipment, February 2015; g) Game consoles, February 2015; and, h) Commercial clothes dryers, February 2015. 3 Energy efficiency opportunities. This bill is intended to expand CEC's existing efforts to improve energy efficiency in plug-in appliances. Additional energy savings is achievable by a number of means, including developing standards for other types of plug-in equipment, requiring devices to go into very low power modes when not in use, improved efficiency in large appliances, and expanding the application of ultra-low power technology currently used in mobile electronics to more types of products. The 2013 California Energy Efficiency and Goals Study, prepared for CPUC, found that: Lighting, whole-building, and appliance plugs have the largest energy savings potential. There are many new appliance plug measures that are coming into the market and modeled in this study. The results show that these new appliance plug measures have a significant impact on energy savings potential and make up nearly a quarter of the potential savings in 2020. 4 Previous legislation. a) AB 2529 (Williams, 2014) would have required CEC and PUC to perform a study of energy usage by plug-in equipment and AB 1094 Page 6 develop an implementation plan to achieve specified reductions in energy consumption by plug-in equipment by 2030. This bill was held in the Assembly Appropriations Committee. b) AB 454 (Pavley), Chapter 591, Statutes of 2011 authorized 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. c) SB 332 (Corbett, 2007) would have required CEC 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. This bill was held in the Assembly Appropriations Committee. d) AB 2021 (Levine), Chapter 734, Statutes of 2006 requires all electric and natural gas utilities to meet energy efficiency savings targets established by CEC and CPUC. 5)Double Referral. This bill has been double referred to the Utilities and Commerce Committee, which passed with a vote of 11 to 3. That committee passed the bill with the agreement that amendments would be adopted in this committee. The amendments strike the requirement for CEC to set GHG standards for plug in equipment. AB 1094 Page 7 REGISTERED SUPPORT / OPPOSITION: Support Association of Home Appliance Manufacturers California Energy Efficiency Industry Council California Building Industry Associuation California Business Properties California Retailers Association California League of Conservation Voters Coalition for Clean Air Communities for a Better Environment Environment California Environmental Defense Fund AB 1094 Page 8 Environmental Entrepreneurs Global Green Natural Resources Defense Council (Sponsor) Pacific Gas and Electric Company Sacramento Municipal Utility District San Diego Gas & Electric Company Sierra Club Southern California Edison US Green Building Council Union of Concerned Scientists Opposition AB 1094 Page 9 California Manufacturers & Technology Association Consumer Electronics Association Independent Energy Producers Association Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916) 319-2092