## 1.4 Why California Needs Energy Standards

Energy efficiency reduces energy costs for owners, increases reliability and availability of electricity for the State, improves building occupant comfort, and reduces environmental impact.

### 1.4.1 Energy Savings

Reducing energy use is a benefit to all. Building owners save money, Californians have a more secure and healthy economy, the environment is less negatively impacted, and our electrical grid can operate in a more stable state. The 2016 Energy Standards (for residential and nonresidential buildings) are expected to reduce the growth in electricity use and reduce the growth in gas use.

### 1.4.2 Electricity Reliability and Demand

Buildings are one of the major contributors to electricity demand. We learned during the 2000/2001 California energy crisis, and the East Coast blackout in the summer of 2003, that our electric distribution network is fragile and system overloads caused by excessive demand from buildings can create unstable conditions. Resulting blackouts can disrupt business and cost the economy billions of dollars.

Since the California electricity crisis, the Energy Commission has placed more emphasis on demand reduction.

### 1.4.3 Comfort

Comfort is an important benefit of energy efficient buildings. Energy efficient buildings include high performance windows to reduce solar gains and heat loss, and properly designed HVAC systems, which provide improved air circulation. Poorly designed building envelopes result in buildings that are less comfortable. Oversized heating and cooling systems do not assure comfort in older, poorly insulated or leaky buildings.

### 1.4.4 Economics

For the building owner, energy efficiency helps create a more profitable operation. From a broader perspective, the less California depends on depletable resources such as natural gas, coal, and oil, the stronger and more stable the economy will remain in the face of energy cost increases. A cost-effective investment in energy efficiency benefits everyone. In many ways, it is far more cost effective for Californians to invest in saving energy than it is to invest in building new power plants.

### 1.4.5 Environment

The use of depetable energy has led to oil spills, acid rain, smog, and other forms of environmental pollution that threaten the natural beauty of our planet. California is not immune to these problems, but the Appliance Efficiency Regulations, the Energy Standards, and utility programs that promote efficiency and conservation help to maintain environmental quality. Other benefits include increased preservation of natural habitats which protect animals, plants, and ecosystems.

### 1.4.6 Greenhouse Gas Emissions and Global Warming

Burning fossil fuel adds carbon dioxide (CO2) to the atmosphere and is a major contributor to global warming; the atmosphere already contains 25 percent more CO2 than it did two centuries ago. Carbon dioxide and other greenhouse gasses create an insulating layer around the earth that leads to global climate change. The Energy Commission’s research shows that most sectors of the State economy face significant risk from climate change, including water resources (from reduced snow pack), agriculture, forests, and the natural habitats of indigenous plants and animals.

Energy efficiency is a far-reaching strategy that is making an important contribution to the reduction of greenhouse gasses. The National Academy of Sciences has urged the country to follow California's lead on such efforts, saying that conservation and efficiency should be the chief elements in energy and global warming policy. Their first efficiency recommendation was simple: Adopt nationwide energy efficiency building codes.

The Energy Standards are expected to have a significant impact on reducing greenhouse gas and other air emissions.