BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1561|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 445-6614         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1561
          Author:   Kelley (R)
          Amended:  8/5/02 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  6-1, 6/11/02
          AYES:  Bowen, Alarcon, Dunn, Murray, Sher, Speier
          NOES:  Battin

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Energy efficiency standards

           SOURCE  :     San Diego County Water Authority


           DIGEST  :    This bill requires the California Energy  
          Commission to establish a water efficiency standard for  
          residential washing machines that is at least as water  
          efficient as commercial clothes washers.

           ANALYSIS  :    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  
                                                           CONTINUED





                                                               AB 1561
                                                                Page  
          2

          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 water efficiency factor for residential clothes washers  
          manufactured after January 1, 2007, that is at least as  
          efficient as the standard for commercial washing machines  
          (which is currently 9.5).

          This bill requires the CEC to petition the federal  
          Department of Energy  (DOE) by April 1, 2004 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, 2005.

           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  







                                                               AB 1561
                                                                Page  
          3

          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). 

          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

          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.  







                                                              AB 1561
                                                                Page  
          4

           
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/5/02)

          San Diego County Water Authority (source)
          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

           OPPOSITION  :    (Verified  8/5/02) (Prior to latest  
          amendments)

          Alliance Laundry Systems
          Association of Home Appliance Manufacturers
          California Retailers Association
          Best Buy
          Exxcalibur Laundries
          GE Appliances
          Maytag Corporation
          Whirlpool Corporation


          NC:cm  8/7/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****