BILL ANALYSIS �
AB 2529
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Date of Hearing: April 21, 2014
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 2529 (Williams) - As Amended: April 21, 2014
SUBJECT : Energy usage: Plug in equipment
SUMMARY : This bill requires the California Energy Commission
(CEC) and the California Public Utilities Commission (PUC) to
perform a study of energy usage by plug-in equipment and develop
an implementation plan to achieve specified reductions in energy
consumption by plug-in equipment by 2030. Specifically, this
bill :
1)Makes various findings and declarations regarding California
energy goals, amount of energy used by plug-in equipment, the
need to address reducing plug-in equipment energy usage, and
challenges to achieving market transformation.
2)Defines "plug-in equipment" to mean an electrical device that
plugs into a wall outlet, including but not limited to outdoor
appliances, kitchen and laundry appliances, commercial plug-in
refrigeration, security appliances, hot tub and pool pumps,
consumer and office electronics, personal care products, and
power tools.
3)Excludes from the definition of plug-in equipment industrial
data centers, heating, ventilation, and cooling equipment,
built in or portable lighting; infrastructure loads connected
directly to the building wiring (Ground Fault Circuit
Interrupter breakers and outlets, smoke or carbon monoxide
detectors, dimming switches, doorbells, and garage door
openers), electric vehicles, and medical devices.
4)Requires the CEC and PUC to jointly perform a study, by
January 1, 2016, of energy use by plug-in equipment used by
both commercial and residential customers during the year
2014.
5)Requires the CEC and PUC to develop a coordinated
implementation plan, in consultation with stakeholders, to
reduce plug-in energy consumption by at least a 25 percent
aggregate reduction in residential households and 40 percent
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aggregate reduction per square foot of commercial space.
6)Specifies the implementation plan to:
a) Be comprised of a portfolio of methods to promote
innovation, research and development, public outreach and
education, and efficiency standards.
b) Consider cost and ratepayer protections.
c) Use an accurate cost-effectiveness method for assessing
the long-term value of energy efficiency savings and ensure
that benefits outweigh costs to ratepayers.
1)Requires the CEC and PUC to work with stakeholders to address
challenges that may limit or inhibit the achievement of the
reduction targets specified in the implementation plan,
including valuation and attribution of energy savings and
enabling market transformation.
2)Requires the CEC and PUC to annually track the implementation
of the plan in meeting the energy reduction targets.
3)Allows the CEC and PUC to update the implementation plan and
its priorities in consultation with stakeholders.
4)Requires the CEC to report on progress through the tracking
plan and the Integrated Energy Policy Report (IEPR) and update
the implementation plan.
EXISTING LAW
(1)Requires the CEC to continuously carry out studies, technical
assessments, research projects, and data collection directed
to reducing wasteful, inefficient, unnecessary, or uneconomic
uses of energy, including improved appliance efficiency.
(Public Resources Code 25401)
(2)Requires the CEC to adopt cost-effective energy and water
efficiency standards for appliances. (Public Resources Code
25402)
(3)Prohibits the sale of new appliances that do not meet the
energy and water efficiency standards adopted by the CEC.
(Public Resources Code 25402(c)(2)
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FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement. Plug-in equipment is responsible for
nearly 60% of residential and 16% of commercial electricity
consumption in California. Across both sectors, plug-in
equipment consumes the equivalent annual output of 23
500-megawatt power plants. This is projected to increase to 27
power plants by 2030.
The California Energy Commission (CEC) and California Public
Utilities Commission (CPUC) have an array of existing programs
including research and development, appliance standards, and
incentive programs aimed at increasing energy efficiency
statewide. There is the potential to scale up these efforts to
capture a larger share of cost-effective energy savings in
plug-in equipment. Quantified goals will drive state agencies
to perform target-driven planning, working with stakeholders
to utilize the most effective strategies available to
transform the plug-in equipment market at the pace and scale
required to meet California's energy and climate goals.
AB 2529 is needed to help leverage California's energy
efficiency programs and partnerships in a coordinated fashion
to meet the challenge and opportunity presented by this large,
yet often overlooked, sector of energy consumption.
2)CEC Appliance Standard Regulations. The CEC has been proposing
and adopting appliance regulations since its inception in
1977. As new product designs, new information about products,
and new information about energy usage become available, the
CEC will periodically propose new regulations or update
existing regulations. The CEC continuously researches,
investigates, assesses, and identifies appliance and end use
products which may ultimately become the subject of an
appliance regulation.
Current regulations cover about 23 categories of appliances,
including:
Air conditioners, heaters, and fans
Battery charger systems
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Clothes washers and dryers
Cooking products and food service equipment
Dishwashers
Distribution transformers
Electric motors
Lighting products
Plumbing fittings and fixtures
Pool and spa equipment
External power supplies
Refrigerators, refrigerator-freezers, and freezers
Televisions, consumer and video equipment
Water heaters
These regulations already include plug-in equipment, including
power tools, cordless phones, and many other plug-in devices.
The Energy Commission recently released a Notice of its
Appliance Regulation Rulemaking Schedule. The schedule
anticipates draft regulations to be available for the
following appliances:
Faucets, Toilets, Urinals, April 2014
Air Filters, Dimming Ballasts, April 2014
LED lamps, MR lamps, May 2014
Pool Pump motors, Portable electric spas, August 2014
Computers, Monitors, and Displays, November 2014
Network Equipment, February 2015
Game Consoles, February 2015
Commercial Clothes Dryers, February 2015
The CEC notes that pool pump motors and network equipment
schedules may be adjusted based on pending requests for
information.
The CEC is preempted from adopting energy efficiency
regulations on products which are already regulated for their
energy usage by the Federal government.
1)The CEC already pursues all cost-effective energy efficiency
opportunities . It is unclear what the CEC would do in addition
to what it already does. By adding a new requirement - to plan
for reducing plug-loads by 25 percent aggregate reduction in
residential households and 40 percent aggregate reduction per
square foot of commercial space by 2030 - it is unclear
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whether this would be instead of or in addition to what the
CEC currently does when it investigates, proposes, and adopts
new cost effective regulations. If it is in addition to what
the CEC already does, then it appears to be redundant.
2)Support and Opposition .
Supporters support the concept of reducing plug-in equipment
load growth and state that there are challenges with federal
preemption of state regulations for certain types of plug in
equipment. One supporter suggested an amendment for the
creation of a baseline that changed over time in recognition
of the rapid market development of some plug in products.
Opponents state that appliance and plug load efficiency is
already being addressed at the CEC and raise concerns about
establishing a target; questions the rationale for including
some but excluding other plug-in technologies; and express
concerns about how this would impact the current rulemakings
underway at both the state and federal level.
REGISTERED SUPPORT / OPPOSITION :
Support
California Energy Efficiency Industry Council (Efficiency
Council)
Environmental Defense Fund
Environmental Entrepreneurs (E2)
Global Green
Natural Resources Defense Council (NRDC)
Pacific Gas and Electric Company (PG&E)
Sand Diego Gas and Electric Company (SDG&E)
Sempra Energy Utilities (SEu)
Sierra Club
Southern California Gas Company (SoCalGas)
Union of Concerned Scientists
Opposition
California Manufacturers & Technology Association (CMTA)
Consumer Electronics Association (CEA)
Information Technology Industry Council
TechNet
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Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083