BILL ANALYSIS �
AB 2339
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Date of Hearing: April 16, 2012
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 2339 (Williams) - As Amended: February 24, 2012
SUBJECT : Geothermal heat pump and solar thermal.
SUMMARY : This bill requires the California Public Utilities
Commission (PUC) to evaluate policies and develop sufficient
infrastructure to overcome barriers to the widespread deployment
and use of geothermal and solar heating and cooling
technologies. Specifically, this bill :
1)Requires the PUC, in consultation with the California Energy
Commission (CEC), Air Resources Board, electrical
corporations, and the geothermal heat pump and distributed
solar thermal heating and cooling industries, to evaluate
policies to develop an infrastructure sufficient to overcome
barriers to the widespread deployment and use of geothermal
and solar heating and cooling technologies.
2)Requires the PUC to adopt rules addressing:
a) Technological advances needed to ensure the
consideration of geothermal heat pumps and solar thermal
heating and cooling in state policy.
b) What role the state should take to support the
development of these technologies.
c) Benefits to ratepayers through the use of geothermal
heat pump and solar thermal heating and cooling
technologies.
d) Existing statutory and permit requirements that impact
the widespread use of geothermal heat pumps and solar
thermal heating and cooling technologies.
e) Recommended changes to existing legal impediments to the
widespread use of geothermal heat pumps and solar thermal
heating and cooling technologies.
f) The impact of widespread use of the geothermal heat pump
and solar thermal heating and cooling technologies on
achieving the state's Greenhouse Gas Emission (GHG)
reduction goals.
EXISTING LAW
AB 2339
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1)Establishes a Renewable Portfolio Standard (RPS) that defines
renewable energy resources as an electrical facility connected
to the electrical grid and requires 33% of utility portfolios
to be from renewable energy by 2020.
2) Establishes Greenhouse Gas (GHG) emission reduction
goals.
3)Establishes minimum building energy efficiency standards for
new and remodeled homes.
4)Provides incentives for greater levels of energy efficiency
features in new and existing homes.
5)Provides incentives for self-generation by renewable
generation technologies that interconnect to the electrical
grid.
6)Provides incentives for solar thermal water heating
technologies.
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's statement . According to the U.S. Department of
Energy, nearly 40% of all U.S. emissions of carbon dioxide are
the results of using energy to heat, cool, and provide hot
water to buildings. Additionally, more than 70% of average
energy demand for a typical single family home is to meet
hearing and cooling needs.
Geothermal heat pumps and solar heating and cooling
technologies can play an important role in reducing
electricity demand and increasing efficiency within the built
environment. Additionally, the potential for employment and
job growth is yet untapped as California seriously
underutilizes these technologies. There should be a state
effort to identify and address why such readily available,
efficient, and cost effective technologies are underutilized
in California when they can save consider able amounts of
energy used for heating and cooling.
2)When is renewable not renewable? The RPS definition of
renewables does not include all renewable technologies.
AB 2339
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Technologies like geothermal heat pumps or solar heating can
displace electricity rather than generate electricity. Because
they do not generate electricity, they are not renewable with
respect to the RPS.
3)So are they efficient? When the CEC and PUC determine
eligibility for standards and incentive programs they do cost
effectiveness evaluations. The PUC has multiple cost
effectiveness methodologies, including ones for energy
efficiency and self-generation. Geothermal heat pumps and
solar heating and cooling technologies do not fare well in
terms of cost effectiveness because renewable energy
technologies don't fit well into the energy efficiency cost
effectiveness methodology.
4)Stuck in the middle . Asking the PUC to adopt rules is the
first step in a process to address the policy gaps identified
by the author. The bill would have the PUC evaluate policies
to develop an infrastructure, which may be one of the outcomes
of the PUC's investigation. In addition, while the bill asks
the PUC to examine the benefits, it did not include the costs.
The author may wish to consider the following amendments:
On Page 2, line 7 after "evaluate policies", strike: to
develop an infrastructure
One Page 2, line 17 after "benefits" insert: and costs
REGISTERED SUPPORT / OPPOSITION :
Support
Air Connection
ClimateMaster
Colorado GEO Energy and Heat Pump Association (CoGEHPA)
Crystal Air
Energy Control, Inc.
Enertech Global, LLC
Geothermal Exchange Organization (GEO)
Ground Source Energy NW
Martin Energetics
Meline Engineering Corporation
Plumas-Sierra Rural Electrical Cooperative (PSREC)
WaterFurnace
William Hanson, Contractor
AB 2339
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Opposition
None on file.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083