BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 549
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          ASSEMBLY THIRD READING
          AB 549 (Longville)
          As Amended May 31, 2001
          2/3 vote 

           UTILITIES AND COMMERCE     16-0 APPROPRIATIONS      14-7        
           
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          |Ayes:|Wright, Pescetti,         |Ayes:|Migden, Alquist, Aroner,  |
          |     |Calderon,                 |     |Cedillo, Corbett, Correa, |
          |     |Bill Campbell, John       |     |Goldberg, Papan, Pavley,  |
          |     |Campbell, Canciamilla,    |     |Simitian, Thomson,        |
          |     |Cardenas, Diaz, Jackson,  |     |Wesson, Wiggins, Wright   |
          |     |Kelley, Maddox, Nation,   |     |                          |
          |     |Papan, Reyes, Simitian,   |     |                          |
          |     |Wesson                    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bates, Ashburn, Daucher,  |
          |     |                          |     |Maldonado, Robert         |
          |     |                          |     |Pacheco, Runner, Zettel   |
           ----------------------------------------------------------------- 

           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 requires  CEC to:

          1)Monitor compliance with building energy efficiency design  
            standards for residential and non-residential buildings.

          2)Investigate options and develop a plan to decrease wasteful  
            peak load energy consumption.

          3)Certify energy consultants, installers, field verifiers, and  
            non-residential  building standards agents, as appropriate, to  
            ensure compliance with energy efficiency standards.

           EXISTING LAW  :

          1)Requires CEC to prescribe, by regulation, various energy  
            efficiency design standards for residential and  
            non-residential buildings.

          2)Requires CPUC, in consultation with the Independent System  








                                                                  AB 549
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            Operator (ISO), to consult with CEC and adopt energy  
            conservation initiatives to reduce demand for electricity and  
            reduce peak load demand.  

           FISCAL EFFECT  :  $500,000 appropriation from the General Fund to  
          CEC for compliance monitoring.

           COMMENTS  :  This bill contains identical language to SB X2 37  
          (Brulte), pending in the Senate.  In its amended form, this bill  
          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 bill 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 support  
          building standards and other energy efficiency regulations and  
          support development of infrastructure to implement those  
          standards.  The programs would take into account energy  
          efficiency standards developed by CEC.

          There were two bills signed by the governor in the First  
          Extraordinary Session, SB X1 5 (Sher), Chapter 7, Statutes of  
          2001-2002 and AB X1 29 (Kehoe), Chapter 8, Statutes of  
          2001-2002, that 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 this bill is modest, but it is not  
          likely to produce incremental beneficial results to those likely  
          to be achieved through the two extraordinary session bills  
          signed by the governor, except with regard to monitoring for  
          compliance and continued program enhancement for energy  
          efficient building standards and regulations.    

           
          Analysis Prepared by  :  Kelly Boyd / U. & C. / (916) 319-2083 









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