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 ****