BILL NUMBER: AB 662	CHAPTERED
	BILL TEXT

	CHAPTER  531
	FILED WITH SECRETARY OF STATE  OCTOBER 12, 2007
	APPROVED BY GOVERNOR  OCTOBER 12, 2007
	PASSED THE SENATE  SEPTEMBER 11, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2007
	AMENDED IN SENATE  SEPTEMBER 7, 2007
	AMENDED IN ASSEMBLY  MARCH 29, 2007

INTRODUCED BY   Assembly Member Ruskin

                        FEBRUARY 21, 2007

   An act to amend Section 25402 of the Public Resources Code,
relating to water conservation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 662, Ruskin. Water conservation.
   The Warren-Alquist State Energy Resources Conservation and
Development Act requires the State Energy Resources Conservation and
Development Commission (Energy Commission) to prescribe, by
regulation, standards for minimum levels of operating efficiency for
appliances based on feasible and attainable efficiencies, or other
feasible improved efficiencies, that will reduce the electrical
energy consumption growth rate and that do not result in any added
total costs to the consumer over the designed life of the appliances
concerned.
   This bill would instead require that the standards for minimum
levels of operating efficiency be based on those efficiencies that
will reduce the energy or water consumption growth rates, and that do
not result in any added total costs over the designed life of the
appliances concerned.
   This bill would incorporate additional changes in Section 25402 of
the Public Resources Code proposed by AB 1560, to be operative only
if AB 1560 and this bill are both chaptered and become effective on
or before January 1, 2008, and this bill is chaptered last.


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

  SECTION 1.  Section 25402 of the Public Resources Code is amended
to read:
   25402.  The commission shall, after one or more public hearings,
do all of the following, in order to reduce the wasteful, uneconomic,
inefficient, or unnecessary consumption of energy:
   (a) Prescribe, by regulation, lighting, insulation climate control
system, and other building design and construction standards that
increase the efficiency in the use of energy for new residential and
new nonresidential buildings. The standards shall be cost effective,
when taken in their entirety, and when amortized over the economic
life of the structure when compared with historic practice. The
commission shall periodically update the standards and adopt any
revision that, in its judgment, it deems necessary. Six months after
the commission certifies an energy conservation manual pursuant to
subdivision (c) of Section 25402.1, no city, county, city and county,
or state agency shall issue a permit for any building unless the
building satisfies the standards prescribed by the commission
pursuant to this subdivision or subdivision (b) that are in effect on
the date an application for a building permit is filed.
   (b) Prescribe, by regulation, energy conservation design standards
for new residential and new nonresidential buildings. The standards
shall be performance standards and shall be promulgated in terms of
energy consumption per gross square foot of floorspace, but may also
include devices, systems, and techniques required to conserve energy.
The standards shall be cost effective when taken in their entirety,
and when amortized over the economic life of the structure when
compared with historic practices. The commission shall periodically
review the standards and adopt any revision that, in its judgment, it
deems necessary. A building that satisfies the standards prescribed
pursuant to this subdivision need not comply with the standards
prescribed pursuant to subdivision (a). The commission shall comply
with this subdivision before January 1, 1981.
   (c) (1) Prescribe, by regulation, standards for minimum levels of
operating efficiency, based on a reasonable use pattern, and may
prescribe other cost-effective measures, including incentive
programs, fleet averaging, energy and water consumption labeling not
preempted by federal labeling law, and consumer education programs,
to promote the use of energy- and water-efficient appliances whose
use, as determined by the commission, requires a significant amount
of energy or water on a statewide basis. The minimum levels of
operating efficiency shall be based on feasible and attainable
efficiencies or feasible improved efficiencies that will reduce the
energy or water consumption growth rates. The standards shall become
effective no sooner than one year after the date of adoption or
revision. No new appliance manufactured on or after the effective
date of the standards may be sold or offered for sale in the state,
unless it is certified by the manufacturer thereof to be in
compliance with the standards. The standards shall be drawn so that
they do not result in any added total costs for consumers over the
designed life of the appliances concerned.
   In order to increase public participation and improve the efficacy
of the standards adopted pursuant to this subdivision, the
commission shall, prior to publication of the notice of proposed
action required by Section 18935 of the Health and Safety Code,
involve parties who would be subject to the proposed regulations in
public meetings regarding the proposed regulations. All potential
affected parties shall be provided advance notice of these meetings
and given an opportunity to provide written or oral comments. During
these public meetings, the commission shall receive and take into
consideration input from all parties concerning the parties' design
recommendations, cost considerations, and other factors that would
affect consumers and California businesses of the proposed standard.
The commission shall take into consideration prior to the start of
the notice of proposed action any input provided during these public
meetings.
   The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the consumer,
and the life cycle cost to the consumer of complying with the
standard. The commission shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses, and alternative approaches
and their associated costs.
   (2) No new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
may be sold, or offered for sale, in the state, unless the date of
the manufacture is permanently displayed in an accessible place on
that appliance.
   (3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1), no
increase or decrease in the minimum level of operating efficiency
required by the standard for that appliance shall become effective,
unless the commission adopts other cost-effective measures for that
appliance.
   (4) Neither the commission nor any other state agency shall take
any action to decrease any standard adopted under this subdivision on
or before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the commission finds by a four-fifths vote that a decrease is
of benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the commission shall
not take any action to increase a standard prescribing minimum levels
of operating efficiency for any appliance or adopt a new standard
under paragraph (1). Before January 1, 1986, any appliance
manufacturer doing business in this state shall provide directly, or
through an appropriate trade or industry association, information, as
specified by the commission after consultation with manufacturers
doing business in the state and appropriate trade or industry
associations on sales of appliances so that the commission may study
the effects of regulations on those sales. These informational
requirements shall remain in effect until the information is
received. The trade or industry association may submit sales
information in an aggregated form in a manner that allows the
commission to carry out the purposes of the study. The commission
shall treat any sales information of an individual manufacturer as
confidential and that information shall not be a public record. The
commission shall not request any information that cannot be
reasonably produced in the exercise of due diligence by the
manufacturer. At least one year prior to the adoption or amendment of
a standard for an appliance, the commission shall notify the
Legislature of its intent, and the justification to adopt or amend a
standard for the appliance. Notwithstanding paragraph (3) and this
paragraph, the commission may do any of the following:
   (A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
   (B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
   (C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
   (D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
   (E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
   (5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or before
June 30, 1985.
   (d) Recommend minimum standards of efficiency for the operation of
any new facility at a particular site that are technically and
economically feasible. No site and related facility shall be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
   Whenever this section and Chapter 11.5 (commencing with Section
19878) of Part 3 of Division 13 of the Health and Safety Code are in
conflict, the commission shall be governed by that chapter of the
Health and Safety Code to the extent of the conflict.
   (e) The commission shall do all of the following:
   (1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
   (2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
   (3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).
  SEC. 2.  Section 25402 of the Public Resources Code is amended to
read:
   25402.  The commission shall, after one or more public hearings,
do all of the following, in order to reduce the wasteful, uneconomic,
inefficient, or unnecessary consumption of energy, including the
energy associated with the use of water:
   (a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction standards
that increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings. The commission shall
periodically update the standards and adopt any revision that, in its
judgment, it deems necessary. Six months after the commission
certifies an energy conservation manual pursuant to subdivision (c)
of Section 25402.1, no city, county, city and county, or state agency
shall issue a permit for any building unless the building satisfies
the standards prescribed by the commission pursuant to this
subdivision or subdivision (b) of this section that are in effect on
the date an application for a building permit is filed. Water
efficiency standards adopted pursuant to this subdivision shall be
demonstrated by the commission to be necessary to save energy.
   (2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community Development and
the commission shall issue a joint finding whether the standard (A)
is equivalent or superior in performance, safety, and for the
protection of life, health, and general welfare to standards in Title
24 of the California Code of Regulations and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from the water efficiency standards.
Nothing in this subdivision in any way reduces the authority of the
Department of Housing and Community Development to adopt standards
and regulations pursuant to Part 1.5 (commencing with Section 17910)
of Division 13 of the Health and Safety Code.
   (3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The commission shall consult
with the members of the coordinating council as established in
Section 18926 of the Health and Safety Code in the development of
these standards.
   (b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall be
promulgated in terms of energy consumption per gross square foot of
floorspace, but may also include devices, systems, and techniques
required to conserve energy and water. The commission shall
periodically review the standards and adopt any revision that, in its
judgment, it deems necessary. A building that satisfies the
standards prescribed pursuant to this subdivision need not comply
with the standards prescribed pursuant to subdivision (a). Water
conservation design standards adopted pursuant to this subdivision
shall be demonstrated by the commission to be necessary to save
energy. Prior to adopting a water conservation design standard for
residential buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding whether
the standard (A) is equivalent or superior in performance, safety,
and for the protection of life, health, and general welfare to
standards in the California Building Standards Code and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from the water conservation design
standards. Nothing in this subdivision in any way reduces the
authority of the Department of Housing and Community Development to
adopt standards and regulations pursuant to Part 1.5 (commencing with
Section 17910) of Division 13 of the Health and Safety Code.
   (2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to subdivisions (a) and
(b), the commission shall, prior to publication of the notice of
proposed action required by Section 18935 of the Health and Safety
Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the commission shall receive
and take into consideration input from all parties concerning the
parties' design recommendations, cost considerations, and other
factors that would affect consumers and California businesses of the
proposed standard. The commission shall take into consideration prior
to the start of the notice of proposed action any input provided
during these public meetings.
   (3) The standards adopted or revised pursuant to subdivisions (a)
and (b) shall be cost effective when taken in their entirety and when
amortized over the economic life of the structure compared with
historic practice. When determining cost-effectiveness, the
commission shall consider the value of the water or energy saved,
impact on product efficacy for the consumer, and the life cycle cost
of complying with the standard. The commission shall consider other
relevant factors, as required by Sections 18930 and 18935 of the
Health and Safety Code, including, but not limited to, the impact on
housing costs, the total statewide costs and benefits of the standard
over its lifetime, economic impact on California businesses, and
alternative approaches and their associated costs.
   (c) (1) Prescribe, by regulation, standards for minimum levels of
operating efficiency, based on a reasonable use pattern, and may
prescribe other cost-effective measures, including incentive
programs, fleet averaging, energy consumption labeling not preempted
by federal labeling law, and consumer education programs, to promote
the use of energy- and water-efficient appliances whose use, as
determined by the commission, requires a significant amount of energy
or water on a statewide basis. The minimum levels of operating
efficiency shall be based on feasible and attainable efficiencies or
feasible improved efficiencies that will reduce the energy or water
consumption growth rates. The standards shall become effective no
sooner than one year after the date of adoption or revision. No new
appliance manufactured on or after the effective date of the
standards may be sold or offered for sale in the state, unless it is
certified by the manufacturer thereof to be in compliance with the
standards. The standards shall be drawn so that they do not result in
any added total costs for consumers over the designed life of the
appliances concerned.
   In order to increase public participation and improve the efficacy
of the standards adopted pursuant to this subdivision, the
commission shall, prior to publication of the notice of proposed
action required by Section 18935 of the Health and Safety Code,
involve parties who would be subject to the proposed regulations in
public meetings regarding the proposed regulations. All potential
affected parties shall be provided advance notice of these meetings
and given an opportunity to provide written or oral comments. During
these public meetings, the commission shall receive and take into
consideration input from all parties concerning the parties' design
recommendations, cost considerations, and other factors that would
affect consumers and California businesses of the proposed standard.
The commission shall take into consideration prior to the start of
the notice of proposed action any input provided during these public
meetings.
   The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the consumer,
and the life cycle cost to the consumer of complying with the
standard. The commission shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses, and alternative approaches
and their associated costs.
   (2) No new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
may be sold, or offered for sale, in the state, unless the date of
the manufacture is permanently displayed in an accessible place on
that appliance.
   (3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1), no
increase or decrease in the minimum level of operating efficiency
required by the standard for that appliance shall become effective,
unless the commission adopts other cost-effective measures for that
appliance.
   (4) Neither the commission nor any other state agency shall take
any action to decrease any standard adopted under this subdivision on
or before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the commission finds by a four-fifths vote that a decrease is
of benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the commission shall
not take any action to increase a standard prescribing minimum levels
of operating efficiency for any appliance or adopt a new standard
under paragraph (1). Before January 1, 1986, any appliance
manufacturer doing business in this state shall provide directly, or
through an appropriate trade or industry association, information, as
specified by the commission after consultation with manufacturers
doing business in the state and appropriate trade or industry
associations on sales of appliances so that the commission may study
the effects of regulations on those sales. These informational
requirements shall remain in effect until the information is
received. The trade or industry association may submit sales
information in an aggregated form in a manner that allows the
commission to carry out the purposes of the study. The commission
shall treat any sales information of an individual manufacturer as
confidential and that information shall not be a public record. The
commission shall not request any information that cannot be
reasonably produced in the exercise of due diligence by the
manufacturer. At least one year prior to the adoption or amendment of
a standard for an appliance, the commission shall notify the
Legislature of its intent, and the justification, to adopt or amend a
standard for the appliance. Notwithstanding paragraph (3) and this
paragraph, the commission may do any of the following:
   (A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
   (B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
   (C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
   (D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
   (E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
   (5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or before
June 30, 1985.
   (d) Recommend minimum standards of efficiency for the operation of
any new facility at a particular site that are technically and
economically feasible. No site and related facility shall be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
   Whenever this section and Chapter 11.5 (commencing with Section
19878) of Part 3 of Division 13 of the Health and Safety Code are in
conflict, the commission shall be governed by that chapter of the
Health and Safety Code to the extent of the conflict.
   (e) The commission shall do all of the following:
   (1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
   (2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
   (3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).
  SEC. 3.  Section 2 of this bill incorporates amendments to Section
25402 of the Public Resources Code proposed by both this bill and AB
1560. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2008, (2) each bill
amends Section 25402 of the Public Resources Code, and (3) this bill
is enacted after AB 1560, in which case Section 1 of this bill shall
not become operative.