BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1850
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          ASSEMBLY THIRD READING
          AB 1850 (Charles Calderon)
          As Amended  May 1, 2012
          Majority vote 

           NATURAL RESOURCES   6-1         APPROPRIATIONS      17-0        
           
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          |Ayes:|Chesbro, Knight,          |Ayes:|Fuentes, Harkey,          |
          |     |Dickinson, Grove,         |     |Blumenfield, Bradford,    |
          |     |Halderman, Skinner        |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |Nays:|Huffman                   |     |Hall, Hill, Lara,         |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes changes to the requirements relating to the 
          adoption of energy efficiency standards for appliances by the 
          California Energy Commission (CEC).  Specifically,  this bill  : 

          1)Requires CEC to "rely on the most current data available, and 
            wherever feasible, rely on data no older than one year prior 
            to the commencement of the formal rulemaking."  

          2)Authorizes CEC to increase or decrease the minimum level of 
            operating efficiency required by a standard if it finds that 
            the standard is no longer needed.  

           EXISTING LAW  : 

          1)Requires CEC to adopt regulations describing the standards for 
            minimum levels of energy efficiency for appliances using a 
            significant amount of energy.  

          2)Establishes that CEC require the use of product labeling, not 
            preempted by federal law, in order to promote the use of 
            energy efficient appliances so long as it does not result in 
            added cost for consumers.  

          3)Authorizes CEC to adopt an administrative enforcement process, 
            including civil penalties, for violations of its appliance 
            efficiency standards.  








                                                                  AB 1850
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           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill has negligible costs to CEC.

           COMMENTS  :  The Warren-Alquist State Energy Resources 
          Conservation Act establishes that CEC adopt regulations 
          describing the standards for minimum levels of efficiency for 
          appliances that use a significant amount of energy or water.  
          These regulations include standards for both federally regulated 
          appliances and non-federally regulated residential and 
          commercial appliances including water heaters, clothes washers, 
          dishwashers, traffic signals, lighting, and heat and air 
          conditioning systems to be sold in California.  Regulations 
          adopted by CEC in this manner aim to achieve significant energy 
          savings statewide that are feasible, attainable, and do not 
          result in added costs to the consumer for the estimated lifetime 
          of the regulated appliance.  
           
          Beginning January 1 of this year, CEC was granted authority to 
          establish administrative civil penalties for violations of 
          appliance efficiency standards.  SB 454 (Pavley) Chapter 591, 
          Statutes of 2011 authorized CEC to establish an administrative 
          enforcement process.  A 2009 survey of appliance efficiency 
          standards compliance conducted by the Heschong Mahone Group for 
          CEC found that approximately half of the appliances sold in 
          California have not been properly certified as meeting the 
          standards.  

          According to the author, "AB 1850 seeks to improve the 
          regulatory framework supporting energy efficiency with respect 
          to CEC and its focus on energy efficiency through appliance 
          efficiency standards.  CEC's authority regarding appliance 
          efficiency standards has not changed significantly in more than 
          30 years, but the energy-using product and equipment landscape 
          certainly has."  

           
          Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916) 
          319-2092 


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