Bill Text: CA AB1850 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Energy: appliance efficiency.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-22 - Ordered to inactive file at the request of Senator Calderon. [AB1850 Detail]

Download: California-2011-AB1850-Amended.html

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BILL NUMBER: AB 1850	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 22, 2012

   An act to amend Section 25402 of the Public Resources Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1850, as amended, Charles Calderon. Energy: appliance
efficiency. 
   Existing 
    (1)     Existing  law 
authorizes   requires  the State Energy Resources
Conservation and Development Commission to prescribe, by regulation,
appliance efficiency standards, based on reasonable and current use
patterns, to promote the use of energy and water efficient
appliances.  Existing law requires these standards to become
  effective no sooner than one year after the date of
adoption or revision.  
   This bill would make technical, nonsubstantive changes to that
provision.  
   This bill would require the commission to prescribe the appliance
efficiency standards only if it finds less restrictive,
nonregulatory, or regulatory alternatives are not feasible, and that
the standards do not harm employment, competition, consumer choice,
or product innovation, and do not significantly affect retail prices
and burden commerce, as specified.  
   The bill would additionally authorize the commission to prescribe
other cost-effective measures that are technologically feasible and
designed to minimize compliance burdens.  
   The bill would require the standards to become effective no sooner
than 2 years after the date of adoption or revision.  
   (2) Existing law requires the appliance standards adopted or
revised under these provisions to not result in any added total costs
for consumers over the life of the appliances. Existing law requires
the commission to consider other relevant factors in the adoption of
the appliance standards.  
   This bill would require, for appliance standards that are
effective on and after January 1, 2013, the discount rates, payback
calculations, and life cycle cost estimates to use interest rates
that are applicable to consumer financing and to use the average life
of the products before replacement. The bill would additionally
require the commission, in adopting the appliance standards, to
consider impacts on interstate commerce. The bill would require the
commission, before prescribing standards for consumer electronics and
information technology equipment, to conduct an additional specified
analysis and to make specified findings.  
   (3) Existing law provides that, within 5 years after the adoption
of an appliance standard, a change in an appliance standard shall not
become effective unless the commission adopts other cost-effective
measures for that appliance.  
   This bill would additionally provide that a change in the
appliance standard may become effective if the commission finds that
the appliance standard is no longer needed.  
   (4) Existing law requires the commission to treat sales
information of an individual manufacturer as confidential and
provides that information is not a public record.  
   This bill would additionally require the commission to treat other
confidential or proprietary business information as confidential
under these provisions.  
   (5) This bill would require the commission to make certain
determinations when retaining consultants. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25402 of the Public Resources Code is amended
to read:
   25402.  The commission shall, after one or more public hearings,
do all of the following, in order to reduce the wasteful, uneconomic,
inefficient, or unnecessary consumption of energy, including the
energy associated with the use of water:
   (a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction standards
that increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings. The commission shall
periodically update the standards and adopt any revision that, in its
judgment, it deems necessary. Six months after the commission
certifies an energy conservation manual pursuant to subdivision (c)
of Section 25402.1, no city, county, city and county, or state agency
shall issue a permit for any building unless the building satisfies
the standards prescribed by the commission pursuant to this
subdivision or subdivision (b) that are in effect on the date an
application for a building permit is filed. Water efficiency
standards adopted pursuant to this subdivision shall be demonstrated
by the commission to be necessary to save energy.
   (2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community Development and
the commission shall issue a joint finding whether the standard (A)
is equivalent or superior in performance, safety, and for the
protection of life, health, and general welfare to standards in Title
24 of the California Code of Regulations and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from water efficiency standards.
Nothing in this subdivision in any way reduces the authority of the
Department of Housing and Community Development to adopt standards
and regulations pursuant to Part 1.5 (commencing with Section 17910)
of Division 13 of the Health and Safety Code.
   (3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The commission shall consult
with the members of the coordinating council as established in
Section 18926 of the Health and Safety Code in the development of
these standards.
   (b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall be
promulgated in terms of energy consumption per gross square foot of
floorspace, but may also include devices, systems, and techniques
required to conserve energy and water. The commission shall
periodically review the standards and adopt any revision that, in its
judgment, it deems necessary. A building that satisfies the
standards prescribed pursuant to this subdivision need not comply
with the standards prescribed pursuant to subdivision (a). Water
conservation design standards adopted pursuant to this subdivision
shall be demonstrated by the commission to be necessary to save
energy. Prior to adopting a water conservation design standard for
residential buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding whether
the standard (A) is equivalent or superior in performance, safety,
and for the protection of life, health, and general welfare to
standards in the California Building Standards Code and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from the water conservation design
standards. Nothing in this subdivision in any way reduces the
authority of the Department of Housing and Community Development to
adopt standards and regulations pursuant to Part 1.5 (commencing with
Section 17910) of Division 13 of the Health and Safety Code.
   (2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to subdivisions (a) and
(b), the commission shall, prior to publication of the notice of
proposed action required by Section 18935 of the Health and Safety
Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the commission shall receive
and take into consideration input from all parties concerning the
parties' design recommendations, cost considerations, and other
factors that would affect consumers and California businesses of the
proposed standard. The commission shall take into consideration prior
to the start of the notice of proposed action any input provided
during these public meetings.
   (3) The standards adopted or revised pursuant to subdivisions (a)
and (b) shall be cost effective when taken in their entirety and when
amortized over the economic life of the structure compared with
historic practice. When determining cost-effectiveness, the
commission shall consider the value of the water or energy saved,
impact on product efficacy for the consumer, and the life-cycle cost
of complying with the standard. The commission shall consider other
relevant factors, as required by Sections 18930 and 18935 of the
Health and Safety Code, including, but not limited to, the impact on
housing costs, the total statewide costs and benefits of the standard
over its lifetime, economic impact on California businesses, and
alternative approaches and their associated costs.
   (c) (1)  (A)    Prescribe, by regulation,
standards for minimum levels of operating efficiency  for
appliances, only if the commission finds less restrictive,
nonregulatory, or regulatory alternatives are not feasible  ,
based on a reasonable use pattern  , and   . The
commission shall prescribe these standards only if it finds that
these standards do not harm employment, competition, consumer choice,
or product innovation and utility. The commission shall prescribe
these standards only if it finds that the standards do not
significantly affect retail prices and do not burden small- and
medium-sized businesses, competition, and interstate and intrastate
commerce. 
    (B)     The commission  may prescribe
other  technologically feasible,  cost-effective measures
 that are designed to minimize compliance burdens  ,
including incentive programs, fleet averaging, energy and water
consumption labeling not preempted by federal labeling law, and
consumer education programs, to promote the use of energy and water
efficient appliances whose use, as determined by the commission,
requires a significant amount of energy or water on a statewide
basis.  The 
    (C)     The  minimum levels of
operating efficiency  prescribed in the standards  shall be
based on feasible and attainable efficiencies or feasible improved
efficiencies that will reduce the energy or water consumption growth
rates.  The 
    (D)     The  standards shall become
effective no sooner than  one year   two years
 after the date of adoption or revision. A new appliance
manufactured on or after the effective date of the standards shall
not be sold or offered for sale in the state, unless it is certified
by the manufacturer of the appliance to be in compliance with the
standards. The standards shall be drawn so that they do not result in
any added total costs for consumers over the designed life of the
appliances concerned. 
    In 
    (E)     In  order to increase public
participation and improve the efficacy of the standards adopted
pursuant to this subdivision, the commission shall, prior to
publication of the notice of proposed action required by Section
18935 of the Health and Safety Code, involve parties who would be
subject to the proposed regulations in public meetings regarding the
proposed regulations. All potential affected parties shall be
provided advance notice of these meetings and given an opportunity to
provide written or oral comments. During these public meetings, the
commission shall receive and take into consideration input from all
parties concerning the parties' design recommendations, cost
considerations, and other factors that would affect consumers and
California businesses of the proposed standard. The commission shall
take into consideration prior to the start of the notice of proposed
action any input provided during these public meetings. 
   (F) When retaining consultants for purposes of this subdivision,
the commission shall determine their expertise, objectivity, and
independence on the matter for which they are retained. 

    The 
    (G)     The  standards adopted or
revised pursuant to this subdivision shall not result in any added
total costs for consumers over the designed life of the appliances
concerned. When determining cost-effectiveness, the commission shall
consider the value of the water or energy saved, impact on product
efficacy for the consumer, and the life-cycle cost to the consumer of
complying with the standard.  For standards adopted by the
commission that become effective on and after January 1, 2013,
discount rates, payback calculations, and life cycle cost estimates
shall use interest rates that are applicable to consumer financing
and shall use the average life of the product before replacement.
 The commission shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses  and interstate commerce
 , and alternative approaches and their associated costs. 
   (H) Before prescribing standards for consumer electronics and
information technology equipment, the commission shall conduct an
additional analysis that evaluates the need and priority for those
standards, prioritizes standards with a payback of three years or
less, and takes into account, whether or not payback is measured
under the applicable test procedures, the energy use of those
products, and their functions that decrease energy use through
activities such as Internet commerce, online meetings, telework, and
the use of smart grid technology. The commission shall make specific
findings that these standards do not burden or adversely impact those
functions and activities. 
   (2) A new appliance, except for plumbing fitting, regulated under
paragraph (1), that is manufactured on or after July 1, 1984, shall
not be sold, or offered for sale, in the state, unless the date of
the manufacture is permanently displayed in an accessible place on
that appliance.
   (3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1), no
increase or decrease in the minimum level of operating efficiency
required by the standard for that appliance shall become effective,
unless the commission adopts other cost-effective measures for that
appliance  or finds that the regulation is no longer needed 
.
   (4) Neither the commission nor any other state agency shall take
any action to decrease any standard adopted under this subdivision on
or before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the commission finds by a four-fifths vote that a decrease is
of benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the commission shall
not take any action to increase a standard prescribing minimum levels
of operating efficiency for any appliance or adopt a new standard
under paragraph (1). Before January 1, 1986, any appliance
manufacturer doing business in this state shall provide directly, or
through an appropriate trade or industry association, information, as
specified by the commission after consultation with manufacturers
doing business in the state and appropriate trade or industry
associations on sales of appliances so that the commission may study
the effects of regulations on those sales. These informational
requirements shall remain in effect until the information is
received. The trade or industry association may submit sales
information in an aggregated form in a manner that allows the
commission to carry out the purposes of the study. The commission
shall treat any sales  or other confidential or proprietary
business  information of an individual manufacturer as
confidential and that information shall not be a public record. The
commission shall not request any information that cannot be
reasonably produced in the exercise of due diligence by the
manufacturer.  The commission shall rel   y on the most
current data possible and, wherever feasible, rely on data no older
than one year prior to the commencement of the formal rulemaking.
 At least one year prior to the adoption or amendment of a
standard for an appliance, the commission shall notify the
Legislature of its intent, and the justification to adopt or amend a
standard for the appliance. Notwithstanding paragraph (3) and this
paragraph, the commission may do any of the following:
   (A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
   (B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
   (C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
   (D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
   (E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
   (5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or before
June 30, 1985.
   (d) Recommend minimum standards of efficiency for the operation of
any new facility at a particular site that are technically and
economically feasible. No site and related facility shall be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
   Whenever this section and Chapter 11.5 (commencing with Section
19878) of Part 3 of Division 13 of the Health and Safety Code are in
conflict, the commission shall be governed by that chapter of the
Health and Safety Code to the extent of the conflict.
   (e) The commission shall do all of the following:
   (1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
   (2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
   (3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).