BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1574
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1574 (Lowenthal)
          As Amended May 31, 2001
          Majority vote 

           HOUSING             9-0         UTILITIES AND COMMERCE         
          13-4                            
           
           ----------------------------------------------------------------- 
          |Ayes:|Lowenthal, Mountjoy,      |Ayes:|Wright, Pescetti,         |
          |     |Cogdill, Cohn, Dutra,     |     |Calderon, Canciamilla,    |
          |     |Kehoe, Runner, Salinas,   |     |Cardenas, Diaz, Jackson,  |
          |     |Wayne                     |     |Kelley, Maddox, Nation,   |
          |     |                          |     |Papan, Reyes, Wesson      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bill Campbell, John       |
          |     |                          |     |Campbell,                 |
          |     |                          |     |La Suer, Leonard          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      14-7                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Migden, Alquist, Aroner,  |     |                          |
          |     |Cedillo, Corbett, Correa, |     |                          |
          |     |Goldberg, Papan, Pavley,  |     |                          |
          |     |Simitian, Thomson,        |     |                          |
          |     |Wesson, Wiggins, Wright   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bates, Ashburn, Daucher,  |     |                          |
          |     |Maldonado, Robert         |     |                          |
          |     |Pacheco, Runner, Zettel   |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Allows the California Energy Commission (CEC) to adopt  
          energy efficiency regulations and requires a home inspection  
          made in conjunction with the sale of a home to include an  
          inspection of the home's energy efficiency.  Specifically,  this  
          bill  : 

          1)Allows the CEC to adopt regulations:

             a)   Requiring higher insulation and energy efficiency  








                                                                  AB 1574
                                                                  Page  2

               standards in new nonresidential buildings.  

             b)   Prescribing minimum energy efficiency standards for  
               existing single family homes. 

          2)Exempts the above regulations from approval by the California  
            Building Standards Commission (BSC).  

          3)Requires a home inspection made in conjunction with the sale  
            of a single family home to include an inspection of the home's  
            energy efficiency.

           EXISTING LAW  : 

          1)Provides that the CEC shall prescribe by regulation measures  
            to reduce wasteful consumption of energy by new residential  
            and new nonresidential buildings.

          2)Requires the CEC to establish criteria for adopting a  
            statewide home energy rating program for residential  
            dwellings.

          3)Provides that no emergency regulation that is a building  
            standard shall be filed, nor shall the building standard be  
            effective, unless the building standard is submitted to BSC,  
            and is approved and filed.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  CEC estimates that residential and commercial  
          buildings account for over 65% of all state electrical energy  
          use and over 52% of all natural gas use.  Although there are  
          existing standards for new construction, which are periodically  
          updated, those standards were initially drafted in 1978.   
          According to the sponsor, approximately 5.3 million  
          single-family homes have little to no insulation or other  
          efficiency improvements.

          Estimates from the Department of Finance for year 2000 show  
          approximately eight million existing single family homes have  
          been built and approximately seven million square feet of  
          commercial space is in the marketplace.  New construction of  
          residential and commercial buildings only accounts for 2% of the  
          total building stock, leaving 98% with little or no efficiency  
          measures.








                                                                  AB 1574
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          The sponsor notes that both residential and commercial building  
          sectors represent enormous savings potential and should be  
          targeted for efficiency improvements.

          Estimates of the energy savings potential for increasing  
          efficiency measures in existing residential and commercial  
          buildings are 20 times greater than comparable savings achieved  
          by the CEC's recently approved efficiency revisions for new  
          buildings.  


           Analysis Prepared by  :    Hubert Bower / H. & C.D. / (916)  
          319-2085 



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