BILL ANALYSIS �
AB 2581
Page A
Date of Hearing: April 7, 2014
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 2581 (Bradford) - As Amended: April 21, 2014
SUBJECT : Energy: appliance and building energy efficiency
standards.
SUMMARY : This bill would make various changes in statutes
related to the California Energy Commission's (CEC) adoption and
use of appliance and building standards. Specifically, this
bill :
1)Makes various changes to appliance standard statutes,
including provisions that would:
a) Add voluntary agreements to the list of actions the CEC
may take to promote water and energy efficient appliances.
b) Require the CEC to rely upon most current data
available, and when feasible, data that is no older than
one year, prior to commencing an appliance standard
rulemaking.
c) Authorize CEC to repeal a standard that is duplicative
or inconsistent with federal law.
2)Makes various changes to building standard statutes, including
provisions that:
a) Require the CEC, before approving the public domain
computer program that estimates energy consumption, to
perform preliminary tests of the software using examples of
common residential and non-residential building, and to
make the results of the tests publicly available.
b) Require the CEC to ensure its computer program that
estimates energy consumption is available at least six
months before the effective date of adopted or updated
standards.
c) Require the CEC to routinely adjust the software to
improve modeling accuracy for use within single-family
residential dwellings and multi-family residential
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dwellings with up to four units.
d) Require end-users of the public domain computer program
to provide consumers, along with the output of the energy
assessment tool, with a notice explaining how assumptions
used by the computer program may be different than actual
energy use.
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))
4)Requires the CEC to develop a public domain computer program
to estimate energy consumed by residential and nonresidential
buildings. (Public Resources Code 25402.1 (a)(1))
5)Requires the CEC to certify compliance options for new
products, materials, and calculation methods in order to meet
the energy efficiency standards. (Public Resources Code
25402.1 (a)(2))
FISCAL EFFECT : UNKNOWN
COMMENTS :
1)Author's statement: "The California Energy Commission (CEC)
prescribes energy efficiency regulations governing energy
usage of homes, businesses, appliances, heating and air
conditioning systems, and more. The tools approved by the CEC
that are used to estimate energy usage are not accurate enough
and consistently overestimate energy usage. This bill requires
the CEC's public domain software that estimates energy usage
to be routinely adjusted. It would also make consumers aware
AB 2581
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of potential differences between the model and their actual
energy use patterns by providing them with a notice explaining
the caveats. Furthermore, when standards are adopted or
updated, the CEC software is not always fully tested and ready
to go. This bill would require the testing and approval is
completed six months before standards go into effect. Finally,
this bill would add voluntary agreements to the list of
actions the CEC may take to promote water and energy efficient
appliances, ensure the CEC uses the most current data when
enacting energy efficiency standards for appliances, and
authorize them to repeal an appliance standard that is
duplicative or inconsistent."
2)AB 758: A comprehensive energy efficiency program for existing
buildings. AB 758 (Skinner, Chapter 470, Statutes of 2009)
requires the CEC, in collaboration with the California Public
Utilities Commission (PUC) and stakeholders, to develop a
program to achieve greater energy efficiency in the state's
existing buildings.<1> This effort is closely tied to
California's landmark Global Warming Solutions Act of 2006 (AB
32), which seeks to reduce the state's greenhouse gas
emissions to 1990 levels by 2020. One mechanism to reduce
greenhouse gas emissions is to reduce energy consumption in
existing homes - a challenge being met by AB 758.
The first phase of AB 758 implementation, funded by the
American Recovery and Reinvestment Act of 2009 (ARRA),
established state and local pilot programs supporting energy
efficiency upgrades.<2>
3)An energy efficiency pilot program: Energy Upgrade
California.<3> Energy Upgrade California is a statewide
initiative designed to help California meet the climate action
and energy efficiency goals of AB 32 and AB 758, respectively.
By offering financial incentives to homeowners who complete
certain energy-saving home improvements, the program guides
Californians to conserve energy, reduce demand on the
electrical grid, and make informed energy management choices.
Energy Upgrade California is an alliance of the PUC, CEC,
---------------------------
<1> California Energy Commission. Comprehensive Energy
Efficiency Program for Existing Buildings.
http://www.energy.ca.gov/ab758
<2> California Energy Commission. AB 758 Pilots.
http://www.energy.ca.gov/ab758/pilot-programs.html
<3> Energy Upgrade California. http://energyupgradeca.org/en/
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utilities, regional energy networks, local governments,
businesses, and nonprofits.
The financial incentives are designed to reward homeowners who
address energy efficiency needs through a comprehensive "whole
house" approach. Depending on their improvement needs and
budget, homeowners can choose between various incentives -
typically upgrades such as air sealing, attic insulation, and
duct sealing must be combined with upgrades to wall, floor,
and duct insulation and/or heating and cooling equipment.
4)Energy assessments and ratings. An energy assessment examines
energy saving opportunities in a particular building, in order
to define potential upgrades. Ratings are used to compare the
energy efficiency of one building to others based on standard
assumptions of occupant behavior. A variety of software tools
are available to perform assessments and ratings, and some
contractors have created proprietary in-house tools. These
methods involve inputting information about a building into a
building energy simulation program and running the program to
predict energy use. Examples of modeling software that
estimate energy usage include EnergyPro, Home Energy Saver,
and HEED.
Both anecdotal evidence and controlled studies have raised
concerns about the accuracy of energy analysis software.<4>
Generally, it has been observed that software-based energy
analysis of inefficient existing homes tends to over-predict
pre-retrofit energy use and retrofit energy savings. For
example, a recent report found that modeling software
consistently overestimated the energy use of each home<5>.
Modeled pre-retrofit annual energy use was compared with
actual billing data for 30 jobs, showing:
mean modeled total annual use was 40% greater than
billed use
mean modeled annual kWh use was 56-68% greater than
billed use
mean modeled annual gas use was 39-43% greater than
billed use
--------------------------
<4> National Renewable Energy Laboratory. Assessing and
Improving the Accuracy of Energy Analysis for Residential
Buildings http://www.nrel.gov/docs/fy11osti/50865.pdf
<5> 2010-2012 PG&E and SCE Whole House Retrofit Program Process
Evaluation Study.
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The same study found that estimates prepared by the EnergyPro
and eQUEST software were significantly different from each
other and overestimated energy use.
Another study compared software-based energy use projections
for 192 existing homes to actual energy bills and calculated
the percent errors<6>. SIMPLE had a mean absolute percent
error of 25.1%, compared to HES-Full with 33.4%, REM/Rate with
43.7%, and HES-Mid with 96.6%. In other words, SIMPLE
predicted energy use on average within plus or minus 25.1% of
actual use.
It has been recommended that a study compare model results to
pre- and post-upgrade utility bills. This could determine the
accuracy of each software program relative to the particular
measure, and establish the steps needed to calibrate the
models to the actual use. The National Renewable Energy
Laboratory has begun to identify, investigate, and correct
input and software issues.<7>
The CEC agrees that "simulation results should be calibrated
to actual energy usage to help homeowners understand how their
investment will likely affect their energy use if their
occupant behavior remains the same after improvements are
installed."<8>
1)Appliance standards. California is a leader in energy
efficiency regulations, setting standards for various
appliances years before the U.S. Department of Energy.<9>
Since 1976, California law has required that certain
---------------------------
<6> Energy Trust of Oregon. Energy Performance Score 2008 Pilot.
http://www.earthadvantage.org/assets/documents/EPSPilotReport_200
8.pdf
<7> National Renewable Energy Laboratory. Assessing and
Improving the Accuracy of Energy Analysis for Residential
Buildings http://www.nrel.gov/docs/fy11osti/50865.pdf
<8> California Energy Commission. Comprehensive Energy
Efficiency Program For Existing Buildings Scoping Report, August
2012.
http://www.energy.ca.gov/2012publications/CEC-400-2012-015/CEC-40
0-2012-015.pdf
<9>
http://www.energy.ca.gov/appliances/documents/CAEnergyEfficiencyS
tandards.pdf
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appliances meet efficiency standards; therefore each appliance
must be tested and certified to the State before it can be
sold. <10>
The CEC notes that its Appliance Efficiency Program has helped
the state keep per capita energy consumption at nearly the
same level for more than 35 years, while those outside the
state consume about 60% more per capita than in the 1970s.
However, since the state's population has grown, electricity
use has nearly doubled.
Manufacturers must certify appliance efficiency data with the
CEC in order to comply with state law. Appliance Efficiency
Regulations include standards for both federally regulated
appliances and non-federally regulated appliances, such as air
conditioners, heaters, and fans, clothes washers and dryers,
dishwashers, lighting products, plumbing fittings and
fixtures, pool and spa equipment, refrigerators and freezers,
televisions, consumer audio and video equipment, and water
heaters. By providing information on energy efficient
appliances, the CEC's online Appliance Efficiency Database
allows consumers to save money and energy.
Various studies have found that the CEC has based analyses
related to appliance standards on outdated data. One report
argues that the CEC's 2011 analysis of battery chargers and
self-contained lighting controls was based on outdated data
which overstated product savings and understated the
incremental costs of compliance.<11> Another claimed that
analyses regarding consumer electronics (such as TVs, compact
audio products, DVD players, and more) utilized "outdated
power draw values to develop an energy-consumption baseline
that, in many cases, does not appear to reflect the
--------------------------
<10>
http://www.energy.ca.gov/2012publications/CEC-400-2012-FS/CEC-400
-2012-FS-003-En.pdf
<11> Wazzan and Eash. 2011. A Critique of the Regulations on
Battery Charging Systems Proposed by the California Energy
Commission.
https://www.ce.org/CorporateSite/media/Government-Media/Green/201
1-CECreportBatteryChargers.pdf
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performance of typical new devices."<12>
2)Support and opposition. Supporters believe it is helpful for
the CEC to use the most current data whenever feasible to
ensure real energy savings are attained through good
benchmarking and that the CEC should be encouraged to consider
voluntary agreements. Lastly, the elimination of duplicative,
outmoded, or inconsistent regulations is needed so that it
reduces inconsistencies or confusion.
REGISTERED SUPPORT / OPPOSITION :
Support
California Building Industry Association (CBIA)
California Cable & Telecommunications Association (CCTA) (if
amended)
Consumer Electronics Association (CEA)
TechNet
Opposition
None on file
Analysis Prepared by : Brandon Gaytan / U. & C. / (916)
319-2083
---------------------------
<12> TIAX. Assessment of Analyses Performed for the California
Energy Efficiency Regulations for Consumer Electronics Products.
http://www.ce.org/CorporateSite/media/Government-Media/Green/2006
-CECreportPower.pdf