BILL NUMBER: AB 1574	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 23, 2001
	AMENDED IN SENATE  JULY 17, 2001
	AMENDED IN SENATE  JUNE 27, 2001
	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 26, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001
	AMENDED IN ASSEMBLY  APRIL 3, 2001

INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 23, 2001

   An act to amend Section 7195 of the Business and Professions Code,
and to add Sections 25401.5 and 25401.7 to the Public Resources
Code, relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1574, as amended, Lowenthal.  Energy conservation:  building
standards:  inspections.
   (1) Existing law defines terms related to paid home inspections,
establishes a standard of care for home inspectors, and prohibits
certain inspections in which the inspector or the inspector's
employer, as specified, has a financial interest.
   This bill would include within the definition of home inspection
for those purposes an inspection of energy efficiency.  The bill
would specify energy efficiency items to be inspected.
   (2) Existing law requires the State Energy Resources Conservation
and Development Commission to adopt regulations concerning energy
conservation standards for lighting, insulation, climate control
systems, and other building design and construction standards for new
residential and new nonresidential buildings.
   This bill would authorize the commission to  adopt minimum
standards for   develop and disseminate measures that
would enhance  energy efficiency in single-family residential
dwellings that  are occupied on January 1, 2002 
 were built prior to the development of the current energy
efficiency standards  .
   The bill would provide that if, at the time a single-family
residential dwelling is sold, a buyer or seller requests an
inspection, that inspection may include an inspection of the energy
efficiency of the dwelling.   The bill would authorize certified
inspectors to perform inspections and require uncertified inspectors
to give specified energy efficiency information. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares that energy costs
represent a significant proportion of consumers' discretionary
expenses and that energy efficiency measures are available for
residential dwellings in existence on the effective date of this act.

  SEC. 2.  Section 7195 of the Business and Professions Code is
amended to read:
   7195.  For purposes of this chapter, the following definitions
apply:
   (a) (1) "Home inspection" is a noninvasive, physical examination,
performed for a fee in connection with a transfer, as defined in
subdivision (e), of real property, of the mechanical, electrical, or
plumbing systems or the structural and essential components of a
residential dwelling of one to four units designed to identify
material defects in those systems, structures and components.  "Home
inspection" includes any consultation regarding the property that is
represented to be a home inspection or any confusingly similar term.
   (2) "Home inspection", if requested by the client, may include an
inspection of energy efficiency pursuant to Section 25401.7 of the
Public Resources Code.  Energy efficiency items to be inspected may
include the following:
   (A) A noninvasive inspection of insulation R-values in attics,
roofs, walls, floors, and ducts.
   (B) The number of window glass panes and frame types.
   (C) The heating and cooling equipment and water heating systems.
   (D) The age and fuel type of major appliances.
   (E) The exhaust and cooling fans.
   (F) The type of thermostat and other systems.
   (G) The general integrity and potential leakage areas of walls,
window areas, doors, and duct systems.  
   (H) The solar control efficiency of existing windows. 
   (b) A "material defect" is a condition that significantly affects
the value, desirability, habitability, or safety of the dwelling.
Style or aesthetics shall not be considered in determining whether a
system, structure, or component is defective.
   (c) A "home inspection report" is a written report prepared for a
fee and issued after a home inspection.  The report clearly describes
and identifies the inspected systems, structures, or components of
the dwelling, any material defects identified, and any
recommendations regarding the conditions observed or recommendations
for evaluation by appropriate persons.
   (d) A "home inspector" is any individual who performs a home
inspection.
   (e) "Transfer" is a transfer by sale, exchange, installment land
sales contract, as defined in Section 2985 of the Civil Code, lease
with an option to purchase, any other option to purchase, or ground
lease coupled with improvements, of real property or residential
stock cooperative, improved with or consisting of not less than one
nor more than four dwelling units.
  SEC. 3.  Section 25401.5 is added to the Public Resources Code, to
read:
   25401.5.  For the purpose of reducing electrical and natural gas
energy consumption, the commission may  adopt guidelines that
prescribe minimum efficiency standards for single-family residential
dwellings that are occupied on January 1, 2002.  
develop and disseminate measures that would enhance energy efficiency
for single-family residential dwellings that were built prior to the
development of the current energy efficiency standards.  The
measures shall provide a homeowner with information to improve the
energy efficiency of a single-family residential dwelling. 
  SEC. 4.  Section 25401.7 is added to the Public Resources Code, to
read:
   25401.7.  (a) If, at the time a single-family residential dwelling
is sold, a buyer or seller requests an inspection, that inspection
may include an inspection of the energy efficiency of the dwelling.
 The inspector shall either offer to perform an inspection of
the home's energy efficiency or recommend the services of another
individual who can perform an inspection of the home's energy
efficiency.
   (b)  
   (b) An inspector certified by the statewide home energy rating
program pursuant to Section 25942 may perform an inspection of the
energy efficiency of a single-family residential dwelling.
   (c) An inspector not certified by the statewide home energy rating
program pursuant to Section 25942 shall provide a buyer or seller
with contact information for one or more of the following entities
that provide home energy efficiency program information:
   (1) A local publicly owned electric utility, as defined in
subdivision (d) of Section 9604 of the Public Utilities Code.
   (2) A nonprofit organization.
   (3) A government agency.
   (4) An entity consulted by the commission pursuant to subdivision
(b) of Section 25942 to facilitate a public information program to
inform various persons of the existence of the statewide home energy
rating program adopted by the commission pursuant to Section 25942.
   (d)  For purposes of this section, "inspection" means a "home
inspection" as defined in Section 7195 of the Business and
Professions Code.