BILL ANALYSIS �
AB 2339
Page 1
ASSEMBLY THIRD READING
AB 2339 (Williams and V. Manuel P�rez)
As Amended May 2, 2012
Majority vote
UTILITIES & COMMERCE 12-1 NATURAL
RESOURCES 9-0
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|Ayes:|Bradford, Buchanan, Fong, |Ayes:|Chesbro, Knight, |
| |Fuentes, Bonnie | |Brownley, Dickinson, |
| |Lowenthal, Gorell, | |Grove, Halderman, |
| |Roger Hern�ndez, Ma, | |Huffman, Monning, Skinner |
| |Nestande, Skinner, | | |
| |Swanson, Valadao, | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight | | |
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Donnelly, Gatto, | | |
| |Ammiano, Hill, Lara, | | |
| |Mitchell, Nielsen, Norby, | | |
| |Solorio, Wagner | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the California Energy Commission (CEC), in
consultation with the California Public Utilities Commission
(PUC), State Air Resources Board (ARB), and other stakeholders,
to evaluate policies to overcome barriers to the widespread
deployment and use of geothermal heat pump and geothermal ground
loop technologies by July 1, 2013.
EXISTING LAW :
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.
AB 2339
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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 : According to the Assembly Appropriations
Committee, one-time special fund costs of about $100,000 for CEC
to complete the study, which will be absorbed within the balance
of the Public Interest Energy Research (PIER) funds.
COMMENTS :
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.
When is renewable not renewable ? RPS definition of renewables
does not include all renewable technologies. 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
AB 2339
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to RPS.
So are they efficient ? When CEC and PUC determine eligibility
for standards and incentive programs they do cost
effectiveness evaluations. 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 do not fit well into the energy efficiency cost
effectiveness methodology.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0003924