BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 758
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 758 (Skinner)
          As Amended  September 4, 2009
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |50-29|(June 2, 2009)  |SENATE: |27-8 |(September 10, |
          |           |     |                |        |     |2009)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    U. & C.  

           SUMMARY  :  Requires the California Energy Commission (CEC) to  
          develop and implement a comprehensive program to achieve greater  
          energy savings in existing residential and nonresidential  
          building stock, including energy assessments, cost-effective  
          energy efficiency improvements, financing options, public  
          outreach, and education efforts.  

          The Senate amendments  :

          1)Delete the requirement that CEC develop the program to  
            increase the number of annual energy audits or achieve a  
            targeted number of energy audits, and replace it with  
            assessments.

          2)Delete the requirement that the utilities perform audits, and  
            replace it with assessments.

          3)Require the program to coordinate with and avoid duplication  
            of existing proceedings of the California Public Utilities  
            Commission (PUC) and programs administered by the utilities.

          4)Require CEC to fund activities related to this program from  
            the Federal Trust Fund consistent with the federal American  
            Recovery and Reinvestment Act of 2009 (ARRA) or other sources  
            of nonstate funds.

          5)Define "energy assessment" as a determination of an energy  
            user's energy consumption level, relative efficiency compared  
            with other users, and opportunities to achieve greater  
            efficiency or improve energy resource utilization.

          6)Delete some of the reporting criteria that publicly owned  
            utilities (POUs) would be required to submit to the its  








                                                                  AB 758
                                                                  Page  2

            customers and CEC, including the amount of money designated  
            for energy efficiency audits, number of buildings audited,  
            backlog of requests for energy efficiency audits, and types of  
            energy efficiency financing options.
           
          AS PASSED BY THE ASSEMBLY  , this bill required energy efficiency  
          audits and quantitative goals, required POUs to provide  
          quantitative reporting criteria, and did not restrict the  
          funding to ARRA funds.

           FISCAL EFFECT  :   

          1)CEC estimates a need for 10 positions at a cost of about $1  
            million, plus $500,000 in contracts annually for five years,  
            to develop and implement the energy efficiency requirements.   
            Sixty percent of these resources would be for the commercial  
            application and 40% for the residential application. [Energy  
            Resources Programs Account]  The comprehensive program would  
            include a broad range of energy audits, building benchmarking  
            or energy ratings, cost effective energy efficiency  
            improvements, public and private sector energy efficiency  
            financing options, public outreach and education, and expanded  
            utility energy efficiency programs.

          2)PUC would incur one-time costs of about $100,000 for the  
            proceeding and ongoing costs of about $314,000 for one  
            analyst-to coordinate with CEC, assist with the proceeding,  
            and oversee the audit program-and consulting contracts to  
            evaluate the utilities' audit programs.  [Public Utilities  
            Reimbursement Account]

           COMMENTS  :  State energy policy prioritizes energy efficiency to  
          reduce energy usage, which decreases the need for new power  
          plants and transmission lines.  Energy efficiency measures are  
          an inexpensive alternative to investment in infrastructure, and  
          reduce the proliferation of greenhouse gas emissions.  

          To reduce energy usage in existing buildings, CEC and most of  
          the utilities provide information on energy-efficiency  
          do-it-yourself audits.  CEC issued a booklet directed at  
          homebuyers that provides information about home energy audits  
          and rating programs and markets this information through home  
          warranty company internet web sites.  Many of the  
          recommendations require nominal expenses that render large  
          savings.  Some low-cost examples include replacing incandescent  








                                                                  AB 758
                                                                  Page  3

          light bulbs with compact fluorescent ones, using motion sensor  
          controls for exterior lighting, and caulking, sealing, or  
          applying weather strip to seams, cracks, and openings to the  
          outside around windows and doors.


           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 


                                                               FN: 0003084