BILL ANALYSIS
AB 234
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Date of Hearing: April 28, 2009
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Jared William Huffman, Chair
AB 234 (Huffman) - As Amended: April 20, 2009
SUBJECT : Energy and Water Use Efficiency
SUMMARY : Requires the California Energy Commission (CEC) to
coordinate use of federal funding for energy efficiency with
related water efficiency projects through the State Water
Resources Control Board (SWRCB). Specifically, this bill :
1)Requires CEC to coordinate with SWRCB and local water
suppliers on planning and implementation of energy efficiency
actions that also can result in water use savings when using
funding received pursuant to the federal American Recovery and
Reinvestment Act of 2009 (ARRA).
2)Requires the CEC, in consultation with the Water Board, to
establish criteria and priorities for partnering with the
Water Board on programs and projects that have both water and
energy efficiency benefits
3)Allows water-use efficiency projects with energy efficiency
benefits to be eligible for federal funding, provided they are
justified under the provisions of ARRA.
4)Allows SWRCB to use other funding for water use efficiency
projects.
5)Requires that water and energy conservation programs and
projects proceed only to the extent they do no impair the
CEC's ability to meet the federal deadlines for expenditure of
federal stimulus funds provided by the act.
EXISTING LAW establishes various programs to provide financial
assistance to public and private entities to improve energy
efficiency. Public Utilities Commission (PUC) regulations allow
pilot water conservation programs to improve understanding of
the relationship between water and energy efficiency, with a
report to the Legislature by March 31, 2010.
FISCAL EFFECT : Unknown
AB 234
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COMMENTS : In recent years, a growing understanding of the
connection between water use and energy use has emerged. In
2005, the CEC completed a study that showed water use consumes
approximately 19% of California's electrical energy supply and
about one-third of natural gas supply, due to conveyance over
long distances, treatment and heating. Since then, PUC adopted
a water plan that included support for greater water
conservation efforts, in part, to promote energy conservation.
As part of implementation of the landmark climate change
legislation (AB 32), the Air Resources Board adopted a scoping
plan that included reducing greenhouse gas emissions through
water conservation. The Legislature also has passed bills
connecting water-use efficiency with energy efficiency.
In February, President Obama signed the American Recovery and
Reinvestment Act of 2009 (ARRA), to stimulate the economy. ARRA
included $61 billion for energy-related programs, including
energy efficiency. CEC is expected to receive almost $300
million in funding for energy efficiency programs. The author
suggests that this funding offers a "tremendous opportunity to
make the best use of the federal stimulus funding to provide for
job development as well as energy and water conservation."
Ordinarily, California receives only $1-3 million in federal
funding for its State Energy Program.
This bill will connect that energy efficiency funding to
California's current efforts to achieve greater water-use
efficiency. While not imposing specific requirements, the bill
connects the CEC - which controls the federal funding and
recognizes the energy connection to water conservation - with
the SWRCB, which promotes water-use efficiency through various
programs. It leaves the details to these two agencies, to set
criteria and priorities for building the policy and funding
connection between energy and water.
In order to stimulate the economy quickly, ARRA funding is on
fast track, with the CEC expected to submit a comprehensive
application by May 12, 2009 in order to receive the $226 million
to which it is entitled. This bill ensures that this
coordination requirement does not interfere with the State
obtaining this funding, by providing that the coordination
occurs only to the extent it does not impair the CEC's ability
to meet the federal deadlines.
REGISTERED SUPPORT / OPPOSITION :
AB 234
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Support
Green Plumbers
Opposition :None submitted
Analysis Prepared by : Alf W. Brandt / W., P. & W. / (916)
319-2096