BILL ANALYSIS
AB 234
Page 1
Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 234 (Huffman) - As Amended: May 6, 2009
Policy Committee:
UtilitiesVote:15-0
W, P, &W 13-0
(Consent)
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Energy Commission (CEC)-in
administering funds received from the federal American Recovery
and Reinvestment Act (ARRA) specifically for the State Energy
Program and the Energy Efficiency and Conservation Block Grant
Program-identify opportunities to fund energy efficiency
activities that also result in reduced water consumption.
Specifically, this bill:
1)Requires the CEC, to achieve both energy and water savings
using ARRA funds, to coordinate with the Department of Water
Resources and the State Water Resources Control Board with
respect to sharing information on areas to target,
prioritizing actions, and implementation.
2)Requires the CEC's guidelines, to the extent allowable under
federal law, to include:
a) Water-use efficiency and water recycling projects that
also provide energy savings and related job training
programs as eligible projects.
b) Calculation of specified energy savings and reduced
water use.
c) Cost sharing opportunities with local water suppliers.
d) Water suppliers as eligible applicants.
AB 234
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3)Stipulates that projects are eligible only to the extent they
do not impair meeting federal deadlines for spending ARRA
funds.
FISCAL EFFECT
Minor absorbable costs to the CEC to coordinate with the other
departments and to incorporate the water savings features into
its guidelines for disbursement of ARRA
COMMENTS
1)Background and Purpose . The $787 billion ARRA, signed by the
President in February, includes $61 billion for energy-related
programs, including energy efficiency. The CEC is expected to
receive almost $300 million in funding for energy efficiency
programs. The author believes 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."
In 2005, a CEC study showed that water use consumes
approximately 19% of the state's electrical energy production
and about one-third of natural gas supply, due to conveyance
over long distances, treatment and heating. Subsequently, the
Public Utilities Commission adopted a water plan calling for
greater water conservation efforts, in part, to promote energy
conservation. Finally, as part of AB 32 implementation, the
Air Resources Board adopted a scoping plan that included
reducing greenhouse gas emissions through water conservation.
2)Urgency Clause Requested . As an economic stimulus measure,
ARRA funding is on a fast track, with the CEC expected to
submit a comprehensive funding application by May 12, 2009.
According to the author, the CEC's policies and guidelines for
expenditure of ARRA funds will be finalized in the next
several months. The author requests committee adoption of an
urgency clause in order for the Legislature to provide policy
direction to the CEC regarding allocation of the federal
funds.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081