BILL ANALYSIS AB 549 Page 1 ASSEMBLY THIRD READING AB 549 (Longville) As Amended May 31, 2001 2/3 vote UTILITIES AND COMMERCE 16-0 APPROPRIATIONS 14-7 ----------------------------------------------------------------- |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 Page 2 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 AB 549 Page 3 FN: 0001397