BILL ANALYSIS
AB 1530
Page 1
ASSEMBLY THIRD READING
AB 1530 (Skinner)
As Amended April 20, 2009
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5
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|Ayes:|Skinner, Brownley, |Ayes:|De Leon, Ammiano, Charles |
| |Chesbro, | |Calderon, Davis, Fuentes, |
| |De Leon, Hill, Huffman | |Hall, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Gilmore, Knight, Logue |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
| | | | |
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SUMMARY : Requires the Air Resources Board (ARB) to adopt
protocols for the evaluation, measurement, and verification of
any greenhouse gas (GHG) reduction measure that relies on energy
efficiency, in consultation with the Public Utilities Commission
(PUC), California Energy Commission (CEC), and energy efficiency
experts.
EXISTING LAW , pursuant to AB 32 (Nunez), Chapter 455, Statutes
of 2006, required ARB to adopt a statewide GHG emissions limit
equivalent to 1990 levels by 2020 and adopt regulations to
achieve maximum technologically feasible and cost-effective GHG
emission reductions.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, one-time special fund costs of at least several
hundreds of thousands of dollars during 2009-2010 through
2011-2012, to ARB, CEC, and PUC to develop the protocols. (Air
Pollution Control Fund, Energy Resources Programs Account, and
Public Utilities Commission Utilities Reimbursement Account)
COMMENTS : California's energy efficiency programs have
developed over the past thirty years through a combination of
legislative mandates, PUC policies and initiatives, and actions
of public and privately owned utilities. While California is
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currently a recognized leader in energy efficiency, there is no
central entity or organization within the state that has the
mandate, independence, or expertise to develop and implement
clear technical standards for evaluation, measurement, and
verification (EM&V) of energy efficiency measures.
It is not easy to implement energy efficiency programs, much
less successful programs that ensure long-term sustained savings
at a reasonable cost. While PUC has taken the lead in energy
efficiency, its fundamental purpose is to ensure safe and
reliable utility services at just and reasonable rates. PUC was
not designed to implement long-term, billion dollar programs
that rely heavily on specific expertise in diverse fields,
including engineering, behavioral science, building construction
and management, and economics. PUC staff positions are largely
designated for policy analysts and the engineering positions are
primarily geared towards utility plant issues.
Because PUC is not required to publish regulations or standards,
the EM&V process, protocols, and methodologies are unpublished
and are therefore difficult to find and understand. These
issues will become even more important as the state attempts to
measure reductions in GHG emissions from policies and programs,
and in attempting to value these emissions reductions for the
purpose of a cap and trade program.
In its AB 32 Scoping Plan, ARB is counting on increased energy
efficiency for over 15% of the GHG reduction measures necessary
to meet the 2020 limit. Most of the tons are expected to come
from additional building and appliance efficiency to reduce
electricity demand and natural gas use. This will require
further improvements in efficiency standards for both buildings
and appliances, as well as additional spending for rebates and
other incentives.
This bill requires ARB to adopt protocols for EM&V to assure
that energy efficiency measures claimed as GHG reductions are
reliable.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
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FN: 0001103