BILL ANALYSIS
AB 549
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Date of Hearing: April 16, 2001
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 549 (Longville) - As Amended April 5, 2001
SUBJECT : California Energy Commission: building efficiency
standards.
SUMMARY : Requires the California Energy Commission (CEC) to
undertake various measures to reduce peak load demand in
residential and non-residential buildings. Specifically, this
bill :
1)Requires CEC to monitor compliance with building energy
efficiency design standards for residential and
non-residential buildings.
2)Requires CEC to investigate options and develop a plan to
decrease wasteful peak load energy consumption.
3)Requires California Public Utilities Commission (CPUC), in
conjunction with the Independent System Operator (ISO) to
undertake actions necessary to remove constraints on the
state's existing electrical transmission and distribution
system.
EXISTING LAW requires CEC to prescribe, by regulation, various
energy efficiency design standards for residential and
non-residential buildings.
Requires CPUC, in consultation with ISO, to consult with CEC and
adopt energy conservation initiatives to reduce demand for
electricity and reduce peak load demand.
FISCAL EFFECT : Appropriates $500,000 to CEC for infrastructure
development to implement standards set forth in the measure.
COMMENTS :
This bill contains identical language to SB 37 X1 (Brulte),
which is currently housed in the Senate Energy, Utilities and
Communications Committee. In its amended form, AB 549 requires
CEC to report to the Legislature on or before April 1, 2002
regarding any changes in law or other procedures which may be
AB 549
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required to decrease wasteful peak demand consumption of
electricity in existing residential and non-residential
buildings. This measure also requires CEC, upon receipt of a
complaint to monitor compliance with building energy efficiency
standards by checking documentation with actual construction in
the field.
This bill also requires CPUC, working with ISO, to recondition
transmission lines, add capacitors and install new transformer
banks, as necessary, to remove constraints on the state's
electric transmission and distribution system. First priority
for such undertakings shall be given to regions where congestion
reduces electrical supply. CPUC and ISO are also required to
work in consultation with CEC to adopt energy conservation
demand-side management and other initiatives to reduce peak load
electrical demand, including expanding or accelerating
weatherization programs, heating ventilation and
air-conditioning (HVAC) efficiency programs, energy efficiency
programs for new buildings and evaluation of installing local
infrastructure to link temperature setback thermostats to
real-time price signals.
Are these Programs necessary in this Timeframe?
There are two bills currently enrolled and before the governor,
SB 5 X1 (Sher) and AB 29 X1 (Kehoe), which provide
appropriations of more than a billion dollars to devote to
energy efficiency, renewable energy resources, weatherization,
HVAC programs and other areas designed to target reduced peak
demand consumption for both the long and short term in
California. Each of these measures provides funding for the
next two years and requires CEC, CPUC, ISO and other agencies to
work cooperatively toward solutions to existing problems with
delivery of sufficient electricity supply and reduction of peak
period demand.
The $500,000 appropriation in AB 549 is modest, but it is not
likely to produce incremental beneficial results to those likely
to be achieved through the two extraordinary session bills
currently before the governor. This measure is also identical
to another extraordinary session bill, SB 37 X1 (Brulte), which
has not moved beyond the initial policy committee on the Senate
side.
Staff recommends:
AB 549
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The author may wish to amend this bill to provide for a more
targeted program to reduce peak demand that does not conflict
with other programs currently provided by these agencies. It is
uncertain what impact a report and increased enforcement within
the existing budgets of these agencies would have on
significantly reducing peak electricity demand.
REGISTERED SUPPORT / OPPOSITION :
Support
California Building Industry Association (sponsor)
Opposition
None on file.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083