BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 549
                                                                  Page  1

          Date of Hearing:   May 2, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                   AB 549 (Longville) - As Amended:  April 5, 2001 

          Policy Committee:                               
          UtilitiesVote:16-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill 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 the CEC to:

             a)   Monitor compliance with building energy efficiency  
               design standards for residential and non-residential  
               buildings upon request from a local building official. 

             b)   Develop a plan for decreasing wasteful peak load energy  
               consumption in existing buildings and report findings to  
               the Legislature by April 2002.  

             c)   Certify energy consultants, installers, field verifiers,  
               and nonresidential building standards agents to ensure  
               compliance with building energy efficiency standards.

          2)Appropriates $500,000 to the CEC from the General Fund for the  
            above purposes.

           FISCAL EFFECT  

          1)One-time $500,000 General Fund costs to develop the peak load  
            reduction plan and report to the Legislature.

          2)One time General Fund costs of about $500,000 to develop the  
            certification program and on-going costs of about $250,000 to  
            oversee compliance with energy efficiency standards.








                                                                  AB 549
                                                                  Page  2


           COMMENTS  

           Purpose  .  This measure is sponsored by the California Building  
          Industry Association (CBIA), which argues that, while California  
          has devoted its efforts regarding energy efficiency standards to  
          new construction, for demand-side management purposes, the state  
          should develop a program addressing energy efficiency in the  
          existing residential and non-residential building stock.  The  
          CBIA notes, for example, that almost 80 percent of California's  
          12 million homes were built before the first set of statewide  
          standards took effect in 1983.

          The sponsor also notes that the CEC receives inquiries from  
          local building officials regarding field application of energy  
          efficiency standards.  While most of these inquiries are  
          addressed over the phone, occasionally a site visit is  
          necessary.  The CEC is not sure they have the appropriate  
          authority to conduct an on-site compliance review, thus AB 549  
          clarifies such authority.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081