BILL ANALYSIS                                                                                                                                                                                                                   1
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             SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            DEBRA BOWEN, CHAIRWOMAN
          

          SB 37X -  Brulte                                  Hearing  
          Date:  May 1, 2001              S
          As Proposed to be Amended               FISCAL           B
                                                                       
            X
                                                                       
            1

                                                                       
            3
                                                                       
            7

                                   DESCRIPTION
           
           Current law  requires the California Energy Commission (CEC)  
          to prescribe lighting, insulation, climate control system,  
          and other building design and construction standards which  
          increase the efficiency in the use of energy for  new   
          residential and non-residential buildings.

           This bill  requires the CEC to monitor compliance with  
          building energy efficiency standards upon receipt of a  
          complaint by a local building official.

           This bill  requires the CEC to investigate options and  
          develop a plan to decrease wasteful energy consumption in  
          existing buildings.  The plan shall be submitted to the  
          Legislature by January 1, 2002 and shall include  
          recommendations for changes to existing law.

           This bill  requires the California Public Utilities  
          Commission (CPUC), in consultation with the CEC, to develop  
          initiatives to support standards for new buildings and  
          appliances, and to develop infrastructure to implement  
          those standards.

                                    BACKGROUND
           
          The CEC recently revised its new building standards with  











               respect to energy efficiency.  Those new standards, which  
               are significantly higher than other states, will take  
               effect in June.

               Most of the work of the CEC with regard to buildings has  
               been focused on new construction.  This bill focuses on  
               existing buildings, requiring the CEC to consider ways to  
               improve the energy performance of  both residential and  
               non-residential buildings.

               According to the sponsors of this bill, the California  
               Building Industry Association, 80% of existing homes and  
               apartments were built prior to 1983 when the first set of  
               statewide energy efficiency standards took effect.  The  
               fact that so many homes and apartments were built more than  
               18 years ago represents a vast potential for energy  
               efficiency improvement.  However, this bill imposes no  
               requirements other than an investigation and analysis of  
               options by the CEC.



































                                     COMMENTS
           
           1.Author's Amendments  .  The author will propose amendments  
            in committee to delete Section 1, Paragraph (c) (Page 2,  
            Lines 17-24), which requires the CEC to certify energy  
            consultants, installers, field verifiers, and  
            non-residential building standards agents to ensure  
            compliance with building energy efficiency standards. 

           2.Calling The Energy Principal  .  The first provision in  
            this bill requires the CEC staff to field check  
            construction when it receives a complaint by a local  
            building official.  According to the sponsors, these  
            requests are rare, but because the CEC isn't expressly  
            authorized to investigate complaints about compliance  
            with energy efficiency standards, there's some reluctance  
            to provide this service.   The author and committee may  
            wish to consider  revising the language in this provision  
            to make it clear that the CEC staff is providing  
            technical assistance to the building official.  This  
            could be accomplished on Page 2, Line 6, by replacing the  
            language after the comma with "assist such official in  
            determining compliance with building energy efficiency  
            standards including, if necessary, site visits."

           3.Involving The CPUC  .  With the exception of Page 4, Lines  
            15-18, Section 2 of this bill is existing law, which was  
            added last year by AB 970 (Ducheny), Chapter 329,  
            Statutes of 2000.  The provision added by this bill  
            requires the CPUC to create an initiative to develop  
            infrastructure to support implementation of building  
            standards and is funded through rates of the  
            investor-owned utilities (e.g. Pacific Gas & Electric and  
            Southern California Edison).   

            The operative language in this provision is a little  
            unclear, because in this context, "infrastructure" is  
            intended to mean appropriate research, development, and  
            training - not physical construction of a building.   The  
            author and committee may wish to consider  making that  
            clarification.  

            Even with the clarification, a technical problem arises  
            because the section added by this bill is placed in a  










                 section of existing law which required actions to have  
                 been taken by March 2001.   The author and committee may  
                 wish to consider  whether it would be clearer to establish  
                 a separate section for this provision.  

                 A policy issue arises because while the work is funded by  
                 customers of investor-owned utilities, the beneficiaries  
                 of such work are customers of all utilities, including  
                 municipal utilities.   The author and committee may wish  
                 to consider  whether there should be some contribution to  
                 this effort from the customers of the municipal  
                 utilities, perhaps through a portion of the $40 million  
                 they received in SB 5X (Sher), Chapter 7, Statutes of  
                 2001.  Alternatively,  the author and the committee may  
                 wish to consider  whether it would be cleaner to, since  
                 building standards work is already the purview of the  
                 CEC, amend the bill to require the CEC to do the work  
                 mandated by this section of the bill.




































           4.Related Legislation  . AB 64X (Strom-Martin) requires the  
            Department of General Services (DGS) to identify all  
            public buildings in the state's property inventory where  
            it is feasible to reduce energy consumption and achieve  
            energy efficiencies.  This bill is pending in the  
            Assembly Appropriations Committee.

            AB 29X (Kehoe), Chapter 8, Statutes of 2001, contains the  
            language from AB 64X.

            SB 1085 (Bowen) requires state buildings to exceed the  
            existing energy efficiency standards and to be built on a  
            life-cycle cost basis instead of on one that only looks  
            at the up-front capital costs of the building.  This bill  
            is pending in the Senate Appropriations Committee.

                                    POSITIONS
           
           Sponsor:
           
          California Building Industry Association

           Support:
           
          California Association of Realtors

           Oppose:
           
          None on file

          






          Randy Chinn 
          SB 37X Analysis
          Hearing Date:  May 1, 2001