## 1.4 Why California Needs Energy Standards

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

### 1.4.1 Electricity Reliability and Demand

Buildings are a major contributor to electricity demand. The 2000 to2001 California energy crisis and the East Coast blackout in the summer of 2003 illustrated the fragility of the electric distribution network. System overloads caused by excessive demand from buildings create unstable conditions. Blackouts disrupt business and cost the economy billions of dollars.

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

### 1.4.2 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 improve air circulation. Poorly designed building envelopes result in buildings that are less comfortable. Oversized heating and cooling systems do not ensure comfort in older, poorly insulated, or leaky buildings.

### 1.4.3 Economics

Energy efficiency helps create a more profitable operation for building owners. More broadly, the less California that depends on depletable resources such as natural gas, coal, and oil, the stronger and more stable the economy will remain as energy cost increases. investing in energy efficiency benefits everyone. It is more cost effective to invest in saving energy than build new power plants.

### 1.4.4 Environment

The use of depletable energy has led to oil spills, acid rain, smog, and other forms of environmental pollution that threaten the natural beauty of the 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.

### 1.4.5 Greenhouse Gas Emissions and Global Warming

Burning fossil fuel adds carbon dioxide (CO2) to the atmosphere, a major contributor to global warming. Carbon dioxide and other greenhouse gases create an insulating layer that leads to global climate change. The Energy Commission's research shows that most sectors of California 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 to reducing greenhouse gases. 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 to adopt nationwide energy efficiency building codes.

The Energy Standards are expected to significantly reduce greenhouse gas and other air emissions.