BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 2229
                                                                  Page A
          Date of Hearing:   April 28, 2014

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                   AB 2229 (Bradford) - As Amended:  April 2, 2014
           
          SUBJECT  :   Energy efficiency: military bases and facilities

           SUMMARY  :   This bill will require the California Public  
          Utilities Commission (PUC) to establish an energy efficiency  
          program specifically for military bases and facilities.  
          Specifically,  this bill  :  

          Requires the PUC, in consultation with the California Energy  
          Commission (CEC) and the Department of Defense, to identify all  
          potentially achievable cost-effective electricity efficiency  
          savings at military bases and facilities in the state, and to  
          establish efficiency targets for electrical and gas corporations  
          to achieve at military bases and facilities.

           EXISTING LAW  

          a)Requires the PUC to establish energy efficiency procurement  
            targets and ratepayer-funded programs for electrical and gas  
            corporations. (Public Utilities Code 454.55 and 454.56)

          b)Federal Executive Order 13423 (January 2007) establishes goals  
            for improving energy efficiency and reducing greenhouse gas  
            emissions through reduction of energy intensity by 3 percent  
            annually through the end of fiscal year 2015, or 30 percent by  
            the end of fiscal year 2015, relative to the baseline of the  
            agency's energy use in fiscal year 2003.

          c)Federal Executive Order 13514 (October 2009) establishes the  
            policy of the United States for agencies to increase their  
            energy efficiency and reduce energy intensity.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   


           1)Author's Statement.  Department of Defense facilities (Marine,  
            Navy, Air Force, and Coast Guard) in California are ordered to  
            meet Presidential and Administrative goals with respect to  









                                                                  AB 2229
                                                                  Page B
            energy efficiency and renewable energy. Currently, there are  
            no specific programs to assist California military bases in  
            meeting their energy efficiency goals. California should do as  
            much as it can to support our in-state military facilities,  
            and this bill, would ensure that the California military bases  
            and facilities receive support for cost effective energy  
            efficiency improvements.

           2)Regional Energy Networks  . In 2012, the PUC, through Decision  
            D.1211015, selected and authorized Regional Energy Networks  
            (RENs) in response to complaints that utility local government  
            programs were not fully meeting their needs. The PUC  
            authorized RENs to be administered by the electrical and gas  
            corporations, including fiscal oversight and monitoring but  
            excluding program design. The RENs have independent authority  
            to manage, deliver, and oversee their programs and provide  
            period reporting to the PUC to ensure accountability and  
            results. The PUC authorized RENs in Los Angeles County and the  
            San Francisco Bay Area.


            No similar targeted program exists for military and Coast  
            Guard facilities located in California.


           3)Current Energy Efficiency Programs for Military and Coast  
            Guard Facilities  . Currently, utilities work with military  
            bases to identify cost-effective energy efficiency  
            opportunities and provide rebates for measures that are  
            installed. In addition, some utilities have entered into  
            agreement with military bases to provide energy efficiency  
            improvements and demand response programs. A number of energy  
            efficiency and renewable energy projects are currently  
            underway. According to Sempra (SDG&E and SoCal Gas), current  
            projects include: various lighting and energy management  
            projects and several renewable energy projects at various  
            facilities. Sempra reported providing over $1 million in  
            incentives to the US Navy in 2013.

            There is no separate accounting for military facilities within  
            current energy efficiency programs so the extent to which  
            additional cost-effective measures could be implemented is  
            unknown.











                                                                  AB 2229
                                                                  Page C
           4)Have all energy efficiency opportunities been implemented  ? A  
            recent study of Marine Corps Base Camp Pendleton,<1> which  
            assessed one region (Area 22) of that facility, found that:
               "Camp Pendleton already has an outstanding energy  
               conservation program. The Base had an FY 2000 goal of  
               reducing energy use per square foot by 20 percent from its  
               FY 1985 baseline and an FY 2005 reduction goal of 30  
               percent from FY 1985. During 2002, MCB Camp Pendleton  
               aggressively reduced energy consumption by 6 percent. MCB  
               Camp Pendleton was further tasked to identify and  
               accomplish all energy and water conservation actions that  
               pay back in ten years or less by FY 2005 and to improve the  
               efficiency of all industrial facilities energy use by 20  
               percent by FY 2005. MCB Camp Pendleton has accomplished the  
               20 percent reduction and accomplished the additional 10  
               percent reduction by FY 2005 as required. (USMC, 2002)"

               The assessment went on to find numerous opportunities for  
               increasing energy efficiency within Area 22, such as:  
               improving the efficiency of chiller systems, upgrading  
               older air-handling units to efficient air volume systems,  
               increase energy efficiency of boilers, replace  
               refrigerators with newer, efficient refrigerators, improve  
               exterior lighting efficiency (exterior lighting represents  
               approximately 6% of Area 22's electricity demand), and  
               adding occupancy sensors to rooms, replace lighting. This  
               is not the complete list of recommendations. The report  
               concluded that the recommendations would reduce electricity  
               purchases by approximately 2,026,114 kilowatt-hours per  
               year and save nearly $350,000 per year in electricity  
               costs.

            A complete assessment of Camp Pendleton is likely to identify  
            more opportunities to improve efficiency. Similar assessments  
            at other militia facilities are likely to reveal more  
            opportunities to improve energy efficiency.


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           

          ---------------------------
          <1> Energy Reduction Strategies for Marine Corps Base Camp  
          Pendleton, Assessment and Recommendations, Gregory Wiley,  
          University of California, Irvine, May 2012








                                                                  AB 2229
                                                                  Page D
          Clean Power Campaign
          Sierra Club California

           Opposition 
           
          None on file.
           
          Analysis Prepared by :    Susan Kateley / U. & C. / (916)  
          319-2083