BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2355
                                                                  Page 1

          Date of Hearing:  May 7, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 2355 (Gaines) - As Introduced:  February 24, 2012
           
          SUBJECT  :  Energy:  appliance efficiency:  battery chargers

           SUMMARY  :  Specifies that energy efficiency requirements for 
          non-USB battery chargers adopted on or before January 1, 2014 
          will become effective on that date

           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.  

           FISCAL EFFECT  :  Non-fiscal 

           COMMENTS  :

           Background  :  The Warren-Alquist State Energy Resources 
          Conservation Act requires CEC to 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 state-wide that are feasible, attainable, and do not 
          result in added costs to the consumer over the estimated 
          lifetime of the regulated appliance.  









                                                                 AB 2355
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           Prior to January 1 of this year, CEC did not have the authority 
          to establish administrative civil penalties for violations of 
          appliance efficiency standards.  Chapter 591, Statutes of 2011 
          (SB 454, Pavley) 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. 

          On January 12th, the CEC adopted regulations establishing 
          efficiency standards for consumer and non-consumer battery 
          charger systems.  For most chargers (non-USB chargers), the 
          standards will go into effect on February 1, 2013.   According 
          to CEC, the standards will reduce energy consumption by an 
          estimated 2,187 GWh, save California consumers $300 billion in 
          energy costs, and reduce carbon emissions by 1 billion metric 
          tons per year.   

          The U.S. Department of Energy (DOE) has proposed regulations for 
          battery chargers and external power supplies, which, if adopted, 
          will preempt California's standards.   For a variety of 
          products, including power tools, electric shavers, laptops, cell 
          phones, and cordless phones, the DOE standards are less 
          stringent than California's standards.  These regulations are 
          proposed to go into effect on July 1, 2013; however, DOE has 
          generally extended the implementation date of new standards for 
          two additional years.  CEC is currently working with DOE to 
          "harmonize" the federal and state standards.  

           This bill  :  According to the author, "The final CEC standard 
          requires a February 2013 effective date for non-USB consumer 
          product chargers, while allowing an additional 11 months for USB 
          charger systems.  And, since there is no explanation on the 
          CEC's part to help stakeholders appreciate its conclusion and 
          the industry has explained that it needs 2 years, we feel 
          strongly that it could not be based on a lack of information 
          explaining that  all  manufacturers require more compliance time 
          than the proposed amendments afford?  Moreover, it cannot be 
          overstated the degree of effort and cost that manufacturers must 
          put into the retooling process to adjust to significant 
          standards changes that in instances require a shift in more 
          expensive technology. In order to effectively do so for multiple 
          products made by any one manufacturer requires far more than the 
          13 months the current proposal would allow."   








                                                                  AB 2355
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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of Home Appliance Manufacturers (sponsor) 
          California Manufacturers & Technology Association
          Phillips Electronics

           Opposition 
           
          Environmental Defense Fund
          Natural Resources Defense Council 
          Pacific Gas and Electric Company
          San Diego Gas & Electric
          Sempra Energy Utilities
          Sierra Club California
          Southern California Gas Company

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