BILL ANALYSIS �
AB 2339
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2339 (Williams and V. Manuel P�rez)
As Amended August 22, 2012
Majority vote
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|ASSEMBLY: |76-0 |(May 29, 2012) |SENATE: |36-0 |(August 28, |
| | | | | |2012) |
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Original Committee Reference: U. & C.
SUMMARY : Requires the California Energy Commission (CEC), in
consultation with the California Public Utilities Commission
(PUC), State Air Resources Board (ARB), cities, counties,
special districts, and other stakeholders, to evaluate policies
to overcome barriers to the use of geothermal heat pump and
geothermal ground loop technologies by July 1, 2013.
The Senate amendments :
1)Specify CEC shall also consult with cities, counties, and
special districts on geothermal heat pump and geothermal
ground loop technologies barriers.
2)Require CEC to include evaluations and recommendation made
pursuant to this bill in the 2013 Integrated Energy Policy
Report.
3)Delete requirement for PUC to consultant with State Air
Resources Board.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the Assembly version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, up to $100,000 from the Energy Resources Programs
Account (General Fund) for the commission to evaluate and make
recommendations for inclusion in the 2013 report update.
COMMENTS :
Author's statement . According to the U.S. Department of Energy,
nearly 40% of all U.S. emissions of carbon dioxide is the result
of using energy to heat, cool, and provide hot water to
AB 2339
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buildings. Additionally, more than 70% of average energy demand
for a typical single family home is to meet heating 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 considerable amounts of energy used for heating and
cooling.
When is renewable not renewable ? Renewable portfolio standard
(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 to RPS.
So are geothermal heat pumps 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. This bill requires CEC, in consultation with PUC,
local governments, and stakeholders to evaluate geothermal
technologies and develop implementation strategies for its use.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN:
0005757