BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1094


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          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.  









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          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  








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            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  








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               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:








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             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  








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               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.  



          













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          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 








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          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












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          California Manufacturers & Technology Association
          Consumer Electronics Association
          Independent Energy Producers Association


          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092