BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2529
                                                                  Page  1

          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 2529 (Williams) - As Amended:  May 15, 2014

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            10-4
                        Natural Resources                       5-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Energy Commission (CEC) and  
          the Public Utilities Commission (PUC) to perform a baseline  
          study of energy usage by plug-in equipment and develop an  
          implementation plan to achieve specified reductions by 2030.   
          Specifically, this bill:

          1)By January 1, 2017, requires the CEC and PUC to jointly  
            perform a study of average annual energy consumption for  
            plug-in equipment in the residential and commercial sectors  
            during the year 2014 to establish a baseline.

          2)By the year 2030, 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% aggregate reduction in residential households and 40%  
            aggregate reduction per square foot of commercial space when  
            compared to the 2014 baseline.  

          3)Requires the implementation plan to include biennial  
            intermediate targets between 2018 and 2030.  

           FISCAL EFFECT  

          1)Increased one-time costs of up to $3 million for the CEC to  
            develop the baseline study.  Ongoing unknown annual  
            administrative costs.

          2)Increased one-time costs of up to $5 million for the PUC to  
            develop the baseline study.  Ongoing annual administrative  








                                                                  AB 2529
                                                                  Page  2

            cost of approximately $350,000.

           COMMENTS


          1)Rationale.   According to the author, 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.  


            This addresses this large, yet often overlooked, sector of  
            energy consumption.



           2)Background.   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. The CEC is  
            preempted from adopting energy efficiency regulations on  
            products which are already regulated for their energy usage by  
            the Federal government.

            The PUC oversees existing investor-owned utility (IOU)  
            administered ratepayer-funded energy efficiency rebate and  
            codes and standards programs.  


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081