BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 1561 - Kelley Hearing Date: June
11, 2002 A
As Amended: April 11, 2002 FISCAL B
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DESCRIPTION
Current state law requires the California Energy Commission
(CEC) to establish minimum levels of operating efficiency for
appliances in order to reduce the wasteful consumption of
energy. All appliances are required to be labeled with the
amount of energy they consume and no appliance can be sold
unless it complies with the standards.
Current federal regulations set energy efficiency standards for
residential washing machines which will take effect on January
1, 2004, with a higher standard taking effect on January 1,
2007. There are no federal regulations relative to water usage
in clothes washers.
This bill requires the CEC to establish by January 1, 2004 a 9.5
water efficiency factor for residential clothes washers
manufactured after January 1, 2007.
This bill requires the CEC to petition the federal Department of
Energy (DOE) by April 1, 2003 for an exemption from any
relevant federal regulations governing energy efficiency
standards.
This bill requires the CEC to report its progress to the
Legislature by January 1, 2004.
BACKGROUND
The DOE revised its 10-year-old standards for washing machines
last year. The new, higher standards take effect on January 1,
2004, and an even higher set of standards will take effect on
January 1, 2007. The 2004 standards require washing machines to
be 22% more energy efficient that the current minimum, while the
2007 standards require machines to be 35% more efficient. These
standards will result in significant conservation of energy, are
technologically feasible, and economically justified, according
to DOE. The DOE has not set water efficiency standards.
DOE's analysis of the standard notes that a typical clothes
washer has a price of $421 and costs $115/year in energy and
water bills. To meet the 2004 standard, DOE estimates the price
of the washer will rise 12.6% to $474 with operating costs
decreasing by $15/year (13% annually). To meet the 2007
standard, DOE estimates the price of the washer rises to $670
(59% above existing capital cost) with operating costs
decreasing by $48/year (41.7% annually). DOE estimates that 90%
of all consumers purchasing a new washer will save money over
the life of the machine as a result of the 2004 standards, with
81% saving money with the 2007 standards.
Water efficiency is measured by the Water Factor (WF), which is
the number of gallons of water necessary to complete a single
cubic foot of laundry. The lower the WF, the more water
efficient the machine is. According to the Consortium for
Energy Efficiency (CEE), a non-profit public benefit corporation
promoting the use of energy efficient products and services
whose members include electric, gas and water utilities and
state energy offices, the average WF for washers sold in 1994 is
13.3 (i.e. 13.3 gallons of water are needed for each cubic foot
of laundry). This bill requires the CEC to establish a WF of
9.5.
Energy efficiency standards are established at the federal
level. The state may act where the federal government has not
acted or, if the federal government has acted, where a waiver is
granted. Since the federal government views water efficiency as
a component of energy efficiency, California would need a wavier
from the federal standards in order to set water efficiency
standards for residential washing machines.
The CEC has established a water efficiency standard for
commercial washing machines with a WF of 9.5 that will take
effect on January 1, 2007. Since the federal government doesn't
set energy efficiency standards for commercial machines, the CEC
didn't need a waiver in order to set a water efficiency standard
for these machines.
COMMENTS
1.Energy Standard vs. Water Standard . While it would seem
logical that increasing the energy efficiency of a clothes
washing machine would also increase the water efficiency of
the machine, that isn't always the case. It's possible, for
example, to meet the energy efficiency standards by using
water inefficiently (e.g. using more cold water to rinse
clothes rather than less hot water). Supporters of this
measure note that given the state's water supply problems, and
that clothes washers are the second largest indoor residential
water use (behind toilets), water efficiency standards should
be imposed.
2.Why Is 9.5 the Right Number - Or Is It? The bill places the
9.5 WF standard in statute based on the work of the CEE, of
which the CEC is a member. Given the inflexibility of
statutes, the author and committee may wish to consider
whether it would be more appropriate for the bill to simply
direct the CEC to establish a water efficiency standard for
residential washing machines that is at least as efficient as
the standard for commercial washing machines, which is
currently 9.5.
3.Impact on Cost of Washing Machines . The question of whether a
9.5 WF requirement - or any requirement imposed by the CEC if
the above amendment is placed into the bill - will raise the
cost of washing machines is partially answered by looking at
the roster of washing machines that meet the 2007 standards
for energy.
Of the 77 models of washers which currently meet the 2007
energy efficiency standards, 66 also have a WF of 9.5 or
better. A search of the manufacturers' websites shows the
suggested retail price for some of those machines. While some
are very expensive, the least expensive are in the $750 range.
This is comparable to the price of washers which meet the
2007 energy efficiency standard but have a WF worse than 9.5.
While meeting the 2007 energy efficiency standard may increase
the cost of washers initially, meeting the 9.5 WF in addition
to meeting the 2007 energy efficiency standard doesn't
necessarily add a significant new cost. The $750 cost is also
relatively close to the $670 DOE estimate for washers meeting
just the 2007 energy standard. Over time, as production
economies and manufacturing efficiencies are realized, it's
likely the $750 price tag will decline.
4. Timing Is Everything . The bill requires the CEC to petition
the DOE for a waiver no later than 2003 and to amend their
regulations by 2004. This order of events may be backwards
as the DOE will likely want to evaluate the CEC's proposed
regulation before it elects to grant the waiver. The author
and committee may wish to consider amending the bill to
require the CEC to set the standard first and then petition
the DOE for a waiver in order to implement it.
5. The Old "Stakeholder Consensus." The DOE's energy
efficiency standards were based on an agreement by a number
of stakeholders, including appliance manufacturers,
environmental groups, Pacific Gas & Electric, and the CEC.
The voluntary consensus calls for the parties to jointly
advocate for an investment tax credit and for the industry to
"voluntarily report" water factors for their washers.
Signatories to the agreement don't include the water
districts which are sponsoring and supporting this bill.
6. Technically Speaking . On Page 7, Line 15, the words
"manufactured or" should be deleted.
ASSEMBLY VOTES
Assembly Floor (75-0)*
Assembly Appropriations Committee (21-0)*
Assembly Water, Parks and Wildlife Committee
(13-0)*
*Votes reflect a previous, unrelated version of the bill
POSITIONS
Sponsor:
San Diego County Water Authority
Support:
Central Basin Municipal Water District
East Bay Municipal Utility District
Mono Lake Committee
North of the River Municipal Water District
Pacific Gas and Electric Company
Pacific Institute for Studies in Development, Environment and
Security
Sacramento Municipal Utility District
San Diego Regional Chamber of Commerce
Southern California Water Committee
West Basin Municipal Water District
Oppose:
Alliance Laundry Systems
Association of Home Appliance Manufacturers
GE Appliances
Maytag Corporation
Whirlpool Corporation
Randy Chinn
AB 1561 Analysis
Hearing Date: June 11, 2002