BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 549
                                                                  Page  1

          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.

           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.

           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  
          required to decrease wasteful peak demand consumption of  
          electricity in existing residential and non-residential  
          buildings.  This measure 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  
          establish incentives for energy efficiency programs for new  








                                                                  AB 549
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          buildings.  The programs would take into account energy  
          efficiency standards developed by CEC.

           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, which has not  
          moved beyond the initial policy committee on the Senate side.  

           Staff recommends:

           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 








                                                                  AB 549
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