BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1850|
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                                 THIRD READING


          Bill No:  AB 1850
          Author:   Charles Calderon (D)
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE  :  7-1, 7/3/12
          AYES:  Padilla, Fuller, De Le�n, DeSaulnier, Rubio, 
            Strickland, Wright
          NOES:  Corbett
          NO VOTE RECORDED:  Berryhill, Emmerson, Kehoe, Pavley, 
            Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/16/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg
           
          ASSEMBLY FLOOR  :  59-6, 5/21/12 - See last page for vote


           SUBJECT  :    Energy:  appliance efficiency

           SOURCE  :     Consumer Electronics


           DIGEST  :    This bill provides that the battery charger 
          labeling requirements do not become effective and prohibits 
          the enforcement of those requirements if, no later than 
          January 31, 2013, the United States Department of Energy 
          (DOE) issues a decision adopting a federal labeling 
          requirement for battery chargers that becomes effective no 
          later than July 1, 2013.

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           ANALYSIS  :    Existing law requires the California Energy 
          Commission (CEC) to adopt regulatory standards for minimum 
          levels of operating efficiency for appliances the use of 
          which requires a significant amount of energy or water on a 
          statewide basis.  The regulations cannot result in any 
          added total costs for consumers over the designed life of 
          the regulated appliances.

          Existing law authorizes the CEC to prescribe other 
          cost-effective measures to promote use of energy and water 
          efficient appliances, including energy consumption labeling 
          not preempted by federal labeling law.

          Existing regulations adopted by the CEC in January 2012 set 
          minimum efficiency standards for consumer battery chargers 
          and require a permanent label ("BC" inside a circle) on the 
          product nameplate or retail packaging, and instructions if 
          included, to indicate compliance. These state regulations 
          are effective February 1, 2013, for consumer chargers, and 
          January 1, 2014, for industrial chargers.
           
           Current proposed federal regulations by the DOE set minimum 
          efficiency standards for battery chargers and require a 
          permanent label ("BC-III" inside a circle) on the outside 
          of its housing to indicate compliance.  These federal 
          regulations would preempt state regulations although the 
          effective date is uncertain.
           
           Existing law prohibits the CEC from increasing or 
          decreasing any minimum efficiency appliance standard for 
          five years after its adoption unless another cost-effective 
          measure for that appliance is adopted.
           
           Existing law requires any appliance manufacturer doing 
          business in California to submit information to the CEC so 
          the CEC can study the effects of efficiency regulations on 
          sales of appliances and makes this manufacturer information 
          confidential and not a public record.
           
           This bill provides that the battery charger labeling 
          requirements do not become effective and prohibits the 
          enforcement of those requirements if, no later than January 
          31, 2013, the DOE issues a decision adopting a federal 
          labeling requirement for battery chargers that becomes 

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          effective no later than July 1, 2013.

           Background
           
           State Battery Charger Standards  .  In January 2012, the CEC 
          adopted minimum energy efficiency standards for battery 
          chargers commonly used to power cell phones, laptop 
          computers, power tools, and other devices.  The new 
          regulations require that each charger have a permanent 
          label ("BC" inside a circle) on the product nameplate or 
          retail packaging, and instructions if included, to indicate 
          compliance.  According to the CEC, there are an estimated 
          170 million chargers in California households, an average 
          of 11 per household, and the new regulations will reduce 
          the wasted electricity from inefficient chargers by 40%.  
          The CEC claims this will save nearly 2,200 GWh each year 
          (or enough energy to power nearly 350,000 homes or a city 
          roughly the size of Bakersfield), and once fully 
          implemented save California ratepayers more than $300 
          million annually and eliminate one million metric tons of 
          carbon emissions.

          Consumer chargers used in cell phones, personal care 
          devices, and power tools will be required to comply with 
          the new standards by February 1, 2013. Industrial charger 
          compliance such as forklifts and golf carts, is required by 
          January 1, 2014.  Compliance for small commercial chargers, 
          such as walkie talkies and portable barcode scanners, is 
          required by January 1, 2017.  

           Federal Charger Standards  .  In March 2012, the DOE issued 
          proposed battery charger efficiency standards and a 
          requirement that each charger have a permanent label on the 
          outside of its housing to indicate compliance. The proposed 
          federal label is a "BC-III" inside a circle (the sample is 
          a black circle with white type, although the rules do not 
          specify color requirements), with the Roman numeral varied 
          to specify the following:  

                BC-I:       meets no established standard
                BC-II:      meets a standard less stringent than DOE 
                      standard
                BC-III:     meets DOE standard
                BC-IV:      meets a standard more stringent than DOE 

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                      standard

          DOE's  projected timeline indicates final adoption of its 
          regulations in early 2013 at the earliest with an effective 
          date that could be up to two years after adoption but no 
          sooner than July 2013, if they are finalized in early 2013. 
          The presidential election and potential change in 
          administration could hinder adoption by early 2013.

          In comments filed in the federal rulemaking, the CEC states 
          that the federal standards are significantly less stringent 
          than the California standards for several product classes 
          and would negatively impact the energy savings anticipated 
          to be derived by the California standards.  The CEC is 
          actively urging DOE to revise its cost-effective analysis 
          and harmonize its classification of product classes, 
          compliance standards, and label requirement with those 
          adopted by the CEC.

           Comments
          
           According to the author's office, this bill will delay the 
          state battery charger labeling requirement for six months 
          until after a federal requirement is expected, thereby 
          relieving manufacturers of a burdensome and duplicative 
          regulation; authorize the CEC to repeal a regulation when 
          it is no longer needed without having to make a finding of 
          cost effectiveness or energy savings; require the CEC to 
          rely on the most current data possible and whenever 
          feasible rely on data no older than one year prior to 
          starting an efficiency standard rulemaking in order to more 
          closely identify real saving in energy and greenhouse gas 
          emissions; and provide that, for confidential or 
          proprietary business information that would not otherwise 
          be available to the CEC, the parties shall agree on the 
          form and substance of the submission.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee, the CEC 
          is likely to experience increased staff costs due to the 
          need to collect new information before adopting energy 
          efficiency standards.  Such additional costs could be in 

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          the tens of thousands to hundreds of thousands (General 
          Fund).

           SUPPORT  :   (Verified  8/21/12)

          Consumer Electronics Association (source)
          AT&T
          CTIA-The Wireless Association
          California Retailers Association
          Consumer Electronics Association
          Custom Electronic Design & Installation Association
          National Electrical Manufacturers Association
          Power Tool Institute
          Satellite Broadcasting & Communications Association
          Telecommunications Industry Association
          Toy Industry Association

           OPPOSITION  :    (Verified  8/21/12)

          Blue Green Alliance
          Breathe California
          Environment California
          Natural Resources Defense Council
          Pacific Gas and Electric Company
          Sierra Club California


           ASSEMBLY FLOOR :  59-6, 5/21/12
          AYES:  Achadjian, Alejo, Atkins, Beall, Bill Berryhill, 
            Blumenfield, Bradford, Buchanan, Charles Calderon, 
            Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, 
            Dickinson, Donnelly, Eng, Feuer, Fuentes, Furutani, Beth 
            Gaines, Galgiani, Garrick, Gorell, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Huber, Hueso, Jeffries, 
            Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, 
            Morrell, Nestande, Nielsen, Norby, Olsen, Pan, V. Manuel 
            P�rez, Portantino, Silva, Smyth, Solorio, Torres, 
            Valadao, Wagner, Wieckowski, John A. P�rez
          NOES:  Brownley, Gatto, Hill, Huffman, Skinner, Yamada
          NO VOTE RECORDED:  Allen, Ammiano, Block, Bonilla, Butler, 
            Fletcher, Fong, Gordon, Roger Hern�ndez, Bonnie 
            Lowenthal, Mitchell, Monning, Perea, Swanson, Williams



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          RM:m  8/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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