LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: SUPPORT WITH AMENDMENTS
SUMMARY OF BILL: This bill, titled the California Lighting Efficiency and Toxics Reduction Act:
(1) Requires the Department of Toxic Substances Control to prescribe schedules for the reduction of mercury and lead in general purpose lights sold or available in California;
(2) Requires manufacturers of general purpose lights sold in California and containing hazardous materials to ensuring that a system is in place by July 1, 2009, for the collection and recycling of such lamps;
(3) Requires the California Energy Commission (CEC) to by July 1, 2008, to determine the amount of statewide electrical energy consumed by lighting in the state in 2007 and approve a statewide electrical consumption limit for lighting by 2018 that is equivalent to a 50 percent reduction in consumption for indoor lighting and a 75 percent reduction in commercial lighting and outdoor lighting from 2007 levels;
(4) Requires the CEC to develop a strategy for phasing out the use of energy inefficient lighting, reaching a 50 percent decrease in energy consumption for indoor residential lighting and a 25 percent decrease in energy consumption for indoor commercial and outdoor use lighting from 2007 levels by 2018;
(5) Requires the CEC to establish a schedule of minimum energy efficiency standards for all general purpose lights by December 31, 2008, and to establish programs and incentives to encourage the sale in California of general purpose lights that meet or exceed those standards; and
(6) Directs the state Department of General Services, in coordination with the CEC, to end the purchase of general purpose lights by state facilities that do not meet those standards within two years of the standards being adopted.
SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:
Enactment of this bill will ultimately result in the replacement of current inefficient incandescent lighting with more efficient bulbs, such as compact fluorescent lights (CFLs), which the CPUC has consistently recognized as an important measure to achieve energy efficiency.
This bill is technology neutral, in that it does not ban a particular product, but rather seeks a reduction in energy consumption through the phase-out of inefficient lighting.
The bill contains provisions for the recycling of general purpose lights sold in California and containing hazardous materials. Fluorescent bulbs are regulated as hazardous waste in California because of their mercury content (approximately 5 milligrams/bulb), and opportunities for proper disposal are very limited under current law.
SUMMARY OF SUGGESTED AMENDMENTS:
It would be preferable if this bill shortened the timeline for reducing consumption of energy for lighting from 2018 to 2012. The 2012 date corresponds to incandescent bulb manufacturers estimated year of when they will be manufacturing an incandescent bulb with four times its current efficacy (on par with current CFLs).
DIVISION ANALYSIS (Energy Division):
· The CPUC has proposed the conversion of all general purpose and directional lighting in California to high efficiency light sources by 2017 as one of the "big, bold" strategies to be introduced in the 2009-2011 energy efficiency program period1
· AB 1109 would promote the CPUC's policy goals by establishing energy efficiency standards and a limit on lighting-related energy consumption within the time-frame contemplated in the PUC's big, bold strategy proposal. In addition, AB 1109 would require manufacturers of lighting products that contain hazardous materials, such as CFLs, to provide for the recycling of used bulbs. Currently, spent CFLs must be disposed of at a household hazardous waste disposal facility, a universal waste handler (e.g., storage facility or broker), or an authorized recycling facility [Title 22 California Code of Regulations, section 66273.8]. Under AB 1109, by July 1, 2008, manufacturers must submit plans to the Department of Toxic Substances that specify methods for collecting and managing end-of-life general purpose lights containing hazardous materials, including methods used to educate consumers about opportunities presented in the plan.
· Utilities have relied on CFL programs to a large extent in their energy efficiency portfolios. In 2006, CFL activity comprised nearly half of the collective IOU energy saving claims. If AB1109 becomes law, IOU energy efficiency programs may have to turn to other means of achieving efficiency goals. Because the CEC would be required to adopt lighting efficiency standards and to establish a limit on the amount of energy consumed by lighting in the state, inefficient incandescent bulbs would no longer be available for sale and consumers would generally be replacing burned out bulbs with CFLs or other more efficient lighting. This means that many consumers would be "free riders" under programs to replace incandescent bulbs. "Free riders" are customers who would have installed a program measure or equipment even without the financial incentive provided by the utility, and their actions cannot be counted toward the utilities' goals. Focusing the utilities' programs on other means of achieving efficiency savings could complement the PUC's "big, bold" approach to energy efficiency that will be commencing with the 2009 program year. Funds that would have been used to provide incentives for CFLs and other lighting measures would be diverted to other energy efficiency measures and programs.
· The bill would have an additional impact on current CPUC IOU energy efficiency programs in which lighting is a component. The bill would require the CEC to establish programs and incentives to encourage the sale in California of general purpose lights that meet or exceed efficiency standards. The effect of this mandate on CPUC programs would depend on whether the CEC's actions would complement, duplicate or replace the CPUC programs.
· The bill is attempting to address the problem of greenhouse gas (GHG) emissions by proposing a solution to help reduce GHG associated with the use of lighting devices. CFLs use approximately a quarter of the power of incandescent bulbs to produce the same amount of light. By imposing a limit on energy consumption related to lighting and requiring more stringent efficiency standards for lighting devices energy consumption will be reduced, less power will have to be generated and greenhouse gas emissions will be reduced as a result.
· According to the CEC, in California, an estimated 73 million incandescent bulbs and six million CFLs are sold per year. Nationwide, according to the Wall Street Journal, of the approximate 2 billion bulbs sold in 2006, 5 percent were CFLs--a jump of 4.6 percent from the 2000 number. The average Californian household has 40 bulbs, about 10 percent of which are CFLs. According to the CEC's "Lighting Energy Estimate of California Energy Demand forecast (2006-2016)," 21 percent of an average household's electricity consumption is for interior and exterior lighting combined; in the commercial sector it is nearly 40 percent for total commercial use; and it is approximately 9% for industrial. This total use roughly accounts for approximately 26 percent of the state's total electricity demand.2 Interior CFLs can be found in 51 percent of all dwellings.3
PROGRAM BACKGROUND:
· In order to reduce per capita energy consumption, the CPUC adopted aggressive annual and cumulative energy savings goals for the service territories of the California investor-owned utilities (IOUs) from 2004 to 2013 [Decision 04-09-060]. These goals are subject to an updating process every three years. The IOUs have been mandated to design portfolios consisting of various programs that strive to achieve these goals. Lighting efficiency is a significant component of these programs, particularly the replacement of incandescent light bulbs with compact fluorescent bulbs (CFLs) and the installation of CFLs for any new lighting use. For example, one program establishes direct rebates to offset the cost difference between the price of a CFL and an incandescent bulb. CFL-related activity forms a significant part of the IOUs' programs and their claimed energy savings in the 2006-08 program cycle in 2006, CFL activity comprised nearly half of the collective IOU energy saving claims.
· The following table indicates the IOU 2006 claimed and future year projections of installations of all energy efficient lighting measures in California (CFLs, Leeds, etc.)
IOU Summary Information4 | |||||||
Lighting Measures |
Actual Units Installed |
Projected Units Installations | |||||
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 | |
All Energy Saving Lighting Measures |
24,241,529 |
82,172,679 |
131,070,582 |
136,234,179 |
140,485,776 |
130,988,650 |
137,798,403 |
· The CEC's Appliance Efficiency Regulations (Title 20) include standards for general service incandescent light bulbs. The standards apply to appliances that are sold or offered for sale in California, except those sold wholesale in California for final retail sale outside the state and those designed and sold exclusively for use in recreational vehicles or other mobile equipment. The standards set forth specifications for average lighting efficacy (lumens per watt-LPW) effective 2006 (Tier 1), with stricter efficiency standards effective 2008 (Tier 2). The Tier 2 standards require significant design changes to the majority of incandescent bulbs sold in today's market that will mandate an increase in lumens per watt, but will still not be comparable to the efficacy of a CFL. The bill would require the CEC to establish a schedule of minimum energy efficiency standards for all general purpose lights by December 31, 2008.
LEGISLATIVE HISTORY:
· Although there are no comparable bills from past years, a similar bill has been introduced in the current legislative session. AB 722 (Levine) would amend section 25402.5 of the Public Resources Code to prohibit the sale of general service incandescent lamps (light bulbs) in the State of California, effective January 1, 2012. "General service incandescent lamp" is defined as a standard incandescent or halogen type light bulb that is intended for general service applications. AB 722 would exempt specific kinds of specialty incandescent lamps, including, but not limited to, traffic signal lamps and infrared lamps.
· Pending Federal Law: Federal legislation introduced on March 15, 2007, by Jane Harman (D, CA) (HR 1547), calls for significantly higher efficacy standards for bulbs and would prohibit the sale of lamps with an efficacy lower than 120 lumens/watt by 2020 (essentially banning the incandescent we have in the marketplace today). Prior to 2020, the bill requires the Dept. of Energy (DOE) to create regulations that would prohibit the sale of bulbs that fail to meet the following efficacy standards:
_ 60 lumens/W by 2012 (approximate current average of CFL)
_ 90 lumens/W by 2016
The bill does not single out incandescent bulbs, and thus is technology-neutral. Exemptions to the standard would be identified. These would most likely be specialty applications such as health and safety. Additionally, the bill calls on the DOE to submit a plan to Congress that would provide incentives and encourage consumers, including businesses, to use more energy efficient lamps. The bill has been referred to the Committee on Energy and Commerce.
· DOE efforts: The Energy Policy Act of 1992 instructed the DOE to initiate an incandescent lamp efficacy standard rulemaking between 2000-2002. The DOE did not make this deadline, but has now planned an evaluation of mandatory federal standards for these lamps. An advanced notice of proposed rulemaking is to be issued on November 2007 and a final rule will be issued by June 2009, to take effect by June 2012.
· Other States: In Connecticut, HB 6550 would authorize the state's Commissioner of Environmental Protection to study whether there are energy-efficient lamps available for consumers at competitive prices, to create a list of inefficient incandescent lamps, and to prohibit retailers and wholesalers from selling inefficient incandescent lamps not less than 180 days from the date such lamps are classified on the list. It also creates penalties for violation and a surcharge on the sale of incandescent lamps.
· A bill introduced in Rhode Island [SB 806] has provisions for a general service incandescent lamp ban in language similar to SB722. Bills that would require governmental buildings to switch to CFLs have been introduced in New Jersey [A 3983], South Carolina [SB 97], Illinois [HB 1460] and Hawaii [SCR 53 and SR 28]. A bill has been introduced in Minnesota that would authorize a tax on the sale or transfer of incandescent lamps by a wholesaler of $0.25 per lamp [SB 1442].
FISCAL IMPACT:
None
STATUS:
The bill is presently in the Assembly Appropriations Committee and has not been scheduled for hearing.
SUPPORT/OPPOSITION: (5/11/07)
Support: Californians Against Waste (Sponsor)
American Federation of State, County and Municipal Employees
California Product Stewardship Council
California Public Interest Research Group
Environmental Defense
Friends of the Earth
Natural Resources Defense Council
North American Hazardous Materials Management Association
Redding Municipal Utilities
San Diego County
Sierra Club California
Sonoma County Waste Management Agency
Southern California Edison
The Utility Reform Network
One Individual
Opposition: California Chamber of Commerce
STAFF CONTACTS:
Delaney Hunter dlh@cpuc.ca.gov
Director, Office of Governmental Affairs (916) 327-7788
Pamela Wellner PW1@cpuc.ca.gov
Energy Division 415-703-5906
Katherine Hardy KEH@cpuc.ca.gov
Energy Division 415-703-2322
Date: May 16, 2007
BILL LANGUAGE:
BILL NUMBER: AB 1109 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2007
AMENDED IN ASSEMBLY MARCH 29, 2007
INTRODUCED BY Assembly Member Huffman
(Coauthors: Assembly Members Krekorian and Laird)
(Coauthor: Senator Wiggins)
FEBRUARY 23, 2007
An act to add Article 10.02 (commencing with Section 25210.9) to
Chapter 6.5 of Division 20 of the Health and Safety Code, and to add
Sections 25402.5.4 and 25402.5.5 to the Public Resources Code,
relating to energy resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1109, as amended, Huffman. Energy resources: lighting
efficiency: hazardous waste.
(1) Existing law, administered by the Department of Toxic
Substances Control, prohibits the management of hazardous waste,
except in accordance with the hazardous waste laws or the regulations
adopted by the department. A violation of the hazardous waste
control law is a crime.
The State Energy Resources Conservation and Development Commission
is required to prescribe, by regulation, standards for energy
conservation and efficiency, including the adoption of efficiency
standards for outdoor lighting.
This bill would enact the California Lighting Efficiency and
Toxics Reduction Act and would require the department to prescribe,
by regulation, schedules for reducing the maximum levels of mercury,
per lumen hour, and lead in general purpose lights, as defined, sold
or offered for sale in this state. Every manufacturer of general
purpose lights sold in this state and containing hazardous materials
would be required by July 1, 2009, to ensure that a system is in
place for collection and recycling of end-of-life general purpose
lights generated in this state, and submit to the department a
collection, recycling, and management plan fulfilling certain
requirements, by July 1, 2008.
Because a violation of this bill's requirements would be a crime,
the bill would impose a state-mandated local program.
The commission would be required to take certain specified
actions, including, but not limited to, determining the amount of
statewide electrical energy consumption used for lighting in 2007,
and approving a statewide electrical energy consumption limit for
lighting, to be achieved by 2018, equivalent to 50% of 2007 use
levels for indoor residential lighting and 75% of 2007 use levels for
indoor commercial and outdoor use lighting, in order to reduce
energy consumption for lighting in this state by 2018. The
Department of General Services in coordination with the commission
would be required to end the purchase of general purpose lights in
certain state facilities within 2 years of the adoption of the
standards regarding energy consumption limits for all general purpose
lights.
Certain defined specialty lighting and special needs lighting
would be exempt from the requirements of this bill.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be cited as the
California Lighting Efficiency and Toxics Reduction Act.
SEC. 2. The Legislature finds and declares all of the following:
(a) This state has long been a national and international leader
on energy conservation and environmental stewardship efforts,
including the areas of air quality protections, energy efficiency
requirements, renewable energy standards, natural resource
conservation, toxic waste reduction, recycling, and greenhouse gas
emission reduction.
(b) Energy consumption for lighting accounts for nearly 20 percent
of the state's electricity demand. The energy efficiencies of
existing lighting technologies vary significantly, and while
California leads the nation in the use of energy efficient compact
fluorescent lighting, more than 94 percent of current light bulb
purchases are for less efficient incandescent bulbs.
(c) Transitioning to currently available higher efficiency
lighting technologies will substantially reduce energy consumption
and pollution, including reducing greenhouse gas emissions, while
lowering costs to consumers.
(d) The goal of the United States Department of Energy's (DOE)
Building Technologies Lighting Research and Development Program is to
develop and demonstrate energy-efficient, high-quality, long-lasting
lighting technologies by 2025 that have the technical capability of
illuminating buildings using 50 percent less electricity compared to
technologies in 2005.
(e) Many existing lighting choices contain toxic materials. Most
fluorescent lighting products contain hazardous levels of mercury.
Most incandescent lighting products contain hazardous levels of lead.
California prohibits disposing of hazardous lighting products in the
solid waste stream. The hazardous material in these products can be
managed through recycling, but current recycling opportunities and
levels are virtually nonexistent for most consumers.
(f) Fluorescent lighting products delivering the same level of
light at the same level of efficiency can have widely varying levels
or mercury. The California Department of General Services has adopted
a procurement preference favoring Leadership in Energy and
Environmental Design (LEED) compliant low mercury fluorescent lamps.
(g) Coal generated electricity in the United States accounts for
more than six million tons of mercury emissions annually, and while
growth in the use of energy efficient fluorescent lighting without
expanded recycling will result in increased disposal of mercury in
the waste stream, the United States Environmental Protection Agency
has concluded that shifting from incandescent lighting to more
efficient compact fluorescent lighting will result in a net reduction
in total United States mercury emissions due to the displacement of
coal fired electricity generation.
(h) It is the intent of the Legislature that the State Energy
Resources Conservation and Development Commission develop a strategy
for substantially increasing the use of energy efficient lighting and
phasing out the use of energy inefficient lighting over the next
decade.
(i) It is the intent of the Legislature that the Department of
Toxic Substances Control establish a schedule for the phase down in
the use of toxic materials in all lighting products.
(j) It is the intent of the Legislature that the Department of
Toxic Substances Control, in coordination with the Integrated Waste
Management Board, establish a system for the recycling of hazardous
lighting products that is free and convenient for end users.
SEC. 3. Article 10.02 (commencing with Section 25210.9) is added
to Chapter 6.5 of Division 20 of the Health and Safety Code, to read:
Article 10.02. Lighting Toxics Reduction
25210.9. The department shall, after one or more public hearings,
do all of the following, in order to reduce the use of toxic
materials in general purpose lights sold in this state:
(a) Prescribe, by regulation, a schedule for reducing the maximum
levels of mercury per lumen hour in general purpose lights sold or
available for sale in this state.
(b) Prescribe, by regulation, a schedule for reducing the maximum
levels of lead in general purpose lights sold or offered for sale in
this state.
25210.10. (a) (1) For purposes of this article, "general purpose
lights" means lamps, bulbs, tubes, or other devices that provide
functional illumination for indoor residential, indoor commercial,
and outdoor use.
(2) General purpose lights do not include any of the following
specialty lighting: appliance, black light, bug, colored, infrared,
left hand thread, marine, signal service, mine service, plant light,
reflector, rough service, shatter resistant, sign service, silver
bowl, showcase, three-way traffic signal, and vibration service or
vibration resistant.
(3) General purpose lights do not include lights needed to provide
special needs lighting for individuals with exceptional needs.
(b) For purposes of this article, "hazardous material" has the
same meaning as defined in Section 25501.
25210.11. Every manufacturer of general purpose lights sold in
this state and containing hazardous materials shall be responsible
for all of the following:
(a) On and after July 1, 2009, ensuring that a system is in place
to provide for the collection and recycling of any end-of-life
general purpose lights generated in this state.
(b) On or before July 1, 2008, submitting a plan to the department
for the collection, recycling, and proper management of end-of-life
general purpose lights generated in this state.
(c) The plan at a minimum shall include all of the following:
(1) The methods to be used by the manufacturer to collect and
properly manage the devices generated in this state.
(2) The number and frequency of collection opportunities.
(3) The methods to be used to educate consumers about the
opportunities presented in the plan.
(4) The funding mechanisms to be used by the manufacturer to
accomplish the plan.
SEC. 4. Section 25402.5.4 is added to the Public Resources Code,
to read:
25402.5.4. (a) On or before July 1, 2008, the commission, after
one or more public workshops, with public notice and an opportunity
for all interested parties to comment, shall determine the amount of
statewide electrical energy consumption used for lighting in 2007,
and shall approve, in a public hearing, a statewide electrical energy
consumption limit for lighting, to be achieved by 2018, that is
equivalent to 50 percent of 2007 use levels for indoor residential
lighting and 75 percent of 2007 use levels for indoor commercial and
outdoor use lighting.
(b) The statewide electrical energy consumption limit for lighting
shall remain in effect unless otherwise amended or repealed.
(c) It is the intent of the Legislature that the statewide
electrical energy consumption limit for lighting continue to operate
and be used to maintain and continue reductions in energy consumption
for lighting beyond 2018.
(d) The commission shall make recommendations to the Governor and
the Legislature regarding how to continue reductions in electrical
energy consumption for lighting beyond 2018.
SEC. 5. Section 25402.5.5 is added to the Public Resources Code,
to read:
25402.5.5. (a) The commission shall, after
one of more public hearings, do all of the following, in order to
reduce the wasteful, uneconomic, inefficient, or unnecessary
consumption of energy for lighting by 2018:
(a)
(1) Develop and implement a statewide strategy for
reducing energy consumption for indoor residential lighting by 50
percent.
(b)
(2) Develop and implement a statewide strategy for
reducing energy consumption for indoor commercial and outdoor use
lighting by 25 percent.
(c)
(3) On or before December 31, 2008, establish a
schedule of minimum energy efficiency standards for all general
purpose lights.
(d) Coordinate with the Department of General Services to end the
purchase of general purpose lights in state facilities that do not
meet the standards set in subdivision (c), within two years of the
standards being adopted.
(e)
(4) Establish programs and incentives to encourage the
sale in this state of general purpose lights that meet or exceed the
standards set in subdivision (c).
(b) The Department of General Services, in coordination with the
commission, shall end the purchase of general purpose lights in state
facilities that do not meet the standards adopted pursuant to
paragraph (3) of subdivision (a), within two years of the standards
being adopted.
(f)
(c) For purposes of this section, "general purpose
lights" means lamps, bulbs, tubes, or other devices that provide
functional illumination for indoor residential, indoor commercial,
and outdoor use.
(1) General purpose lights do not include any of the following
specialty lighting: appliance, black light, bug, colored, infrared,
left hand thread, marine, signal service, mine service, plant light,
reflector, rough service, shatter resistant, sign service, silver
bowl, showcase, three-way traffic signal, and vibration service or
vibration resistant.
(2) General purpose lights do not include lights needed to provide
special needs lighting for individuals with exceptional needs.
SEC. 6. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
1 CPUC Staff Proposal for 2009-2011 Energy Efficiency Portfolio Development and Long-Term Efficiency Goals Update Process (February 16, 2007, available at http://www.cpuc.ca.gov/EFILE/NOTICE/64726.pdf).
2 Percentage extrapolated from CEC CED forecast (2006-2026) by totaling all sector's GWh and dividing by total percentage used for light for all sectors.
3 California Statewide Residential Appliance Saturation Study (RASS), prepared for the CEC by ITRON, KEMA-Xenergy, Roper ASW, June 2004, CEC 400-04-009.
4 Data furnished from information data request from ED staff to IOUs in March 2007.
