BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 234 - Huffman Hearing Date:
July 7, 2009 A
As Amended: June 9, 2009 FISCAL/Urgency
B
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DESCRIPTION
H.R. 1, the American Recovery and Reinvestment Act of 2009
(ARRA), provides $3.1 billion for state energy efficiency
programs. Of this the California Energy Commission (CEC)
expects to receive $226 million for State Energy Programs (SEP)
and $56 million for energy efficiency and conservation grants to
local governments.
This bill finds that one-fifth of the electricity consumed in
California is associated with water delivery, treatment and use.
This bill requires that the CEC consider water use efficiency
and water recycling projects and job training programs for water
and energy efficiency as eligible for ARRA energy funding.
This bill requires the CEC recognize the energy efficiency
savings for water use efficiency and recycling projects in
specified ways.
This bill requires the CEC to allocate at least half of the ARRA
energy funding as grants.
BACKGROUND
The federal ARRA funds will support the implementation of
longstanding California policies on energy efficiency.
The CEC has filed its proposal to the U.S. Department of Energy
for spending the $226 million in SEP funds. $20 million is
proposed for a green jobs training program with most of the
remainder targeted to energy efficiency retrofits and clean
energy systems in residential, non-residential and industrial
sectors. The CEC has pledged to work with the Legislature in
further developing this program.
On June 25 the DOE awarded California $90.4 million in SEP
funding, with $113 million in SEP funding still pending.
In the 2005 Integrated Energy Policy Report the CEC studied the
link between water use and energy use, finding that 20% of the
electricity consumer in California is associated with water
delivery, treatment and use. The report recommended that
California's water and energy agencies explore and pursue
cost-effective water efficiency opportunities. Those
opportunities should include assessing energy efficiency
improvements in hot and cold water use in homes and businesses,
water saving appliances and fixtures, and devices that use and
move water.
In December 2005 the California Public Utilities Commission
(CPUC) published its Water Action Plan, which called for
strengthening water conservation programs to a level comparable
to that of the energy utilities. In December 2007 the CPUC
established a program to use less water, make water use less
energy intensive, and make water treatment and delivery systems
more efficient. Pilot programs costing $6.4 million were
authorized between two of the major energy utilities and their
local water providers.<1>
COMMENTS
1. Initial Appropriation and Technical Fixes Covered in the
Budget - The CEC has expressed concerns that certain
provisions of law must be revised if they are to
expeditiously expend the expected ARRA funds. Those
changes are contained in a budget trailer bill. That
language also provides for funding for energy retrofits in
state buildings. In addition the proposed budget provides
the CEC with the authority to spend about half of the ARRA
funds.
2. What's the Policy? - The ARRA energy goals are
longstanding goals of the state:
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<1> D.07-12-050.
Increase energy efficiency to reduce energy
costs and consumption for consumers, businesses and
government;
Reduce reliance on imported energy;
Improve the reliability of electricity and
fuel supply and the delivery of energy services; and
Reduce the impacts of energy production and
use on the environment.
Within these goals there is substantial flexibility. The
type of program (e.g. grants or loans) and the program
beneficiaries (e.g. renters, small-businesses, rural areas)
are left to the state, provided that savings can be
documented. Some of the eligible activities that the CEC
will consider are:
Implementing building and industrial energy
efficiency programs;
Establishing and expanding financial
incentives or loans for energy efficiency;
Expanding renewable distributed generation
programs;
Expanding renewable energy programs;
Promoting regional cooperation;
Facilitating sharing of best energy practices;
and
Increasing coordination with utilities
including promulgation of measurement and verification
methodologies.
Since the mechanical problems with distributing the ARRA
energy funding will be dealt with in the budget process,
there is no need for further legislation unless members
choose to provide the CEC with policy guidance. The
leadership in both houses and the CEC have only begun to
engage in policy discussions on the priorities for ARRA
funding. Rather than prejudge the outcome of those
discussions, the author and committee may wish to consider
stripping out the operative provisions of the bill, pending
the outcome of those discussions.
3. One Bill - There is no reason to have multiple bills
dealing with the ARRA. It would be simpler and more
efficient to incorporate the Legislature's ARRA policies
into a single bill, either this bill or AB 262 (Bass), also
being heard today.
4. Double Referral - This bill has been double referred to
the Senate Committee on Environmental Quality. Due to time
constraints, if amendments are proposed in Committee these
amendments must be taken in the second Committee.
ASSEMBLY VOTES
Assembly Floor (77-0)
Assembly Appropriations Committee (16-0)
Assembly Water, Parks and Wildlife Committee
(13-0)
Assembly Utilities and Commerce Committee
(15-0)
POSITIONS
Sponsor:
Author
Support:
Association of California Water Agencies
California Landscape Contractors Association
Calleguas Municipal Water District
East Bay Municipal Utility District
Eastern Municipal Water District
GreenPlumbers
Jazz Semiconductor
Metropolitan Water District of Southern California
Natural Resources Defense Council
San Diego County Water Authority
Southern California Water Committee
Water Replenishment District of Southern California
WateReuse California
Oppose:
None on file
Randy Chinn
AB 234 Analysis
Hearing Date: July 7, 2009