BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1574
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1574 (Lowenthal)
          As Amended September 12, 2001
          Majority vote
           
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          |ASSEMBLY:  |54-21|(June 5, 2001)  |SENATE: |23-9 |(September 14, |
          |           |     |                |        |     |2001)          |
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           Original Committee Reference:    H. & C.D.  

           SUMMARY  :  Authorizes the California Energy Commission (CEC) to  
          develop measures to enhance energy efficiency for homes that  
          were built prior to the establishment of the current energy  
          efficiency standards, and makes related changes. 

           The Senate amendments  : 

          1)Identify the energy efficiency items to be inspected, under  
            the home inspection.

          2)Delete the provisions allowing CEC to adopt regulations.

          3)Provide that CEC may develop and disseminate measures that  
            would enhance energy efficiency for single family residential  
            dwellings.

          4)Provide that CEC may post the measures on its Web site, or by  
            making the measures available to the public upon request.

          5)Allows a buyer or seller, at the time a home is sold, to  
            request a home inspection and a home inspector must provide  
            contact information for one or more of the following that  
            provide home energy information:

             a)   A non-profit organization;

             b)   An energy provider; or,

             c)   A government agency.


           EXISTING LAW  : 









                                                                  AB 1574
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          1)Provides that CEC shall prescribe by regulation measures to  
            reduce wasteful consumption of energy by new residential and  
            new nonresidential buildings.

          2)Requires 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 the  
            California Building Standards Commission (BSC), and is  
            approved and filed.

           AS PASSED BY THE ASSEMBLY  , 

          1)Allows CEC to adopt regulations:

             a)   Requiring higher insulation and energy efficiency  
               standards in new nonresidential buildings; and,  

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

          2)Exempts the above regulations from approval by 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.

           FISCAL EFFECT  :  Potential cost to CEC of $250,000 to $500,000.

           COMMENTS  :  This bill authorizes CEC to provide energy efficient  
          information to homeowners.  Specifically, under this bill, CEC  
          will be authorized to provide energy efficient measures to  
          residential homeowners by posting this information on its Web  
          site or making it available to the public upon request.   
          Additionally, this bill requires home inspectors to provide  
          homeowners with information on energy audit programs available  
          to them.  At the time a residential home is sold, if a home  
          inspection is requested, the home inspector shall provide  
          contact information for public, private and nonprofit  
          organizations that provide home energy information.

          According to some estimates, approximately 80% of California's  
          12 million existing homes and apartments were built prior to  








                                                                  AB 1574
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          1983 when the first set of statewide energy efficiency standards  
          took effect.  That means four out of five homes and apartments  
          in California weren't required to be in compliance with any  
          statewide energy efficiency standard before they were sold.

          Most of the work of CEC with regard to buildings has been  
          focused on new construction.  This bill focuses on existing  
          residential buildings and aims to reduce energy consumption by  
          authorizing CEC to adopt energy efficiency guidelines for  
          existing residential buildings and by encouraging people to have  
          their homes inspected for energy efficiency.
                     
          In 1994, the Legislature considered, but defeated, AB 2780  
          (O'Connell), which proposed to establish a statewide  
          certification program for home inspectors, including training  
          and education standards and a certification exam.  In 1996, SB  
          258 (O'Connell), Chapter 338, Statutes of 1996,  
          was enacted to establish some consumer protections for  
          homebuyers purchasing home inspections and create basic  
          competency standards for home inspectors.


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




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