BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
           ------------------------------------------------------------ 
          |                               |1574(Lowenthal)             |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date:  8/27/01         |Amended: 8/23/01            |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U & C       |
          |                               |6-0                         |
          |                               |                            |
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          ____________________________________________________________ 
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          BILL SUMMARY:  AB 1574 authorizes the California Energy  
          Commission (CEC) to develop measures to enhance energy  
          efficiency for homes that were built prior to the  
          establishment of the current energy efficiency standards,  
          and makes related changes. 
                              Fiscal Impact (in thousands)
           Major Provisions                     2001-02              2002-03          
            2003-04                Fund  
          
          CEC                     Potential costs of $250-500                   
                    General
                                  
          
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense File if the CEC develops the measures.    
          Current law requires the CEC to adopt energy conservation  
          standards for lighting, heating and air conditioning, and  
          other systems, for  new  residences.  

          STAFF NOTES that there is no due date for the CEC to  
          develop the new energy efficiency measures.   

          The bill provides that a home inspection may include an  
          energy efficiency component if requested by the buyer or  
          seller.   In addition, it specifies that an inspector  
          certified by the statewide home energy rating program,  
          administered by the CEC, may perform the inspection.  Staff  
          notes that program is not yet developed by the CEC and may  
          not be for a year or more.  The bill specifies that an  
           uncertified  inspector may refer the person to one of a  
          number of other entities, such as a municipal utility, for  










          home energy efficiency program information. 

          The bill also states that, "The measures shall provide a  
          homeowner with information to improve the energy efficiency  
          of a single-family residential dwelling".  STAFF RECOMMENDS  
          that this provision be amended to clarify whether CEC would  
          be required to, for example, mail information to all  
          homeowners, post the measures on its website, or simply  
          make the information available, upon request.  

          SB 37xx (Brulte), pending in this committee, requires the  
          CEC to identify ways to reduce wasteful peak load energy  
          consumption.  SB 1085 (Bowen) pending in the Assembly,  
          requires new public buildings to exceed the minimum  
          building energy efficiency standards, provided the measures  
          are cost-effective.  AB 29x (Kehoe, Ch. 8, St. of 2001),  
          among other things, requires the Department of General  
          Services to identify each state building where it is  
          feasible to reduce energy consumption and achieve energy  
          efficiencies.  AB 549 (Longville), on this committee's  
          suspense file, appropriates $500,000 from the General Fund  
          to the CEC to develop a plan to reduce wasteful peak load  
          energy consumption.