BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 888
                                                                  Page 1

          Date of Hearing:  April 16, 2007

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Loni Hancock, Chair
                     AB 888 (Lieu) - As Amended:  April 11, 2007
           
          SUBJECT  :  Green building standards. 

           SUMMARY  :  Requires commercial buildings constructed after July  
          1, 2012 to meet green building standards.

           EXISTING LAW  :

          1)Authorizes the State Public Works Board to develop energy and  
            water conservation and design efficiency standards for state  
            buildings.

          2)Requires the State Energy Resources Conservation and  
            Development Commission (CEC) to prescribe building design and  
            construction standards as well as energy conservation design  
            standards that increase energy efficiency for new residential  
            and non-residential buildings.

          3)Pursuant to the Governor's Executive Order S-3-05, calls for a  
            reduction of greenhouse gas emissions to 2000 levels by 2010;  
            to 1990 levels by 2020; and to 80 percent below 1990 levels by  
            2050.  The Governor established the Climate Action Team,  
            headed by the Secretary for Environmental Protection, to  
            implement global warming emission reduction programs and to  
            report on the progress made toward meeting the statewide  
            greenhouse gas targets that were established in the order.

          4)Pursuant to the Governor's Executive Order S-20-04, The Green  
            Building Initiative, ordered the state to take specified  
            actions, including:  1) committing to aggressive action to  
            reduce state building electricity usage by 20 percent in 2015,  
            through cost-effective efficiency measures and distributed  
            generation technologies; and, 2) siting, constructing, and  
            operating all new and renovated state-owned facilities as  
            Leadership in Energy and Environmental Design (LEED) Silver or  
            higher certified buildings.

           THIS BILL  :

          1)Establishes the following definitions: 








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             a)   Defines "green building" as a project designed to reduce  
               direct and indirect environmental consequences associated  
               with its construction, use, operation, maintenance, and  
               decommissioning, based on cost, quality of life impacts,  
               future flexibility, ease of maintenance, energy and  
               resource efficiency, and overall environmental impact, with  
               an emphasis on life-cycle cost.  

             b)   Defines "minimum green building standards" as standards  
               for commercial buildings that, at a minimum, meet the LEED  
               Gold rating or equivalent, and include:  site  
               sustainability; water efficiency; energy and atmosphere;  
               material and resources and sustainable wood (as specified);  
               indoor environmental quality; innovation and design  
               process; non-motorized transport; and a method for  
               determining life-cycle cost.

             c)   Defines "commercial building" as a nonresidential  
               building that is specified within the occupancy groups  
               specified in Group B of Section 100 of Title 24 (the  
               California Building Code), which includes office and  
               professional buildings, and exempts eating establishments  
               and buildings owned or leased by the state or the  
               University of California.  

          2)Requires the California Environmental Protection Agency  
            (CalEPA) and the working group, on or before January 1, 2009  
            and after holding at least two public workshops, to develop,  
            adopt, and make available minimum green building standards for  
            commercial buildings, in consultation with the building  
            construction industry, recognized environmental advocacy  
            groups, local government entities, and other interested  
            parties. 

          3)Establishes a working group to assist CalEPA in developing the  
            standards, to include:  California Integrated Waste Management  
            Board (CIWMB); State Energy Resources Conservation and  
            Development Commission; Air Resources Board; Department of  
            Water Resources; Department of Housing and Community  
            Development; Department of General Services; and, California  
            Building Standards Commission (BSC).  

          4)Requires each state agency identified above to take the lead  
            in developing standards related to its area of expertise and  








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            to ensure that the standards at least meet the LEED Gold  
            standards. 

          5)Requires CalEPA to coordinate the integration of the standards  
            developed by the working group and to consult with BSC to  
            ensure that the standards are not in conflict with the  
            California Building Standards Code.  

          6)Requires CalEPA, on or before July 1, 2010, to submit the  
            minimum green building standards to BSC for adoption into the  
            California Building Standards Code.  BSC may revise, but shall  
            not reduce, the standards.  

          7)Requires, on and after July 1, 2012, all new commercial  
            buildings that are 50,000 square feet or larger to be  
            constructed to meet the minimum green building standards.  Any  
            commercial building smaller than 50,000 square feet shall be  
            constructed to meet the standards unless the owner can  
            justify, based on economic considerations, an inability to  
            comply.

           FISCAL EFFECT  :  Unknown. 

           COMMENTS  :

           1)Need for the Bill 

           According to the author's office, the widespread use of green  
          building criteria will substantially reduce the state's energy  
          consumption, air pollution, and water use, as well as improve  
          worker health and productivity.   Additionally, green building  
          reduces greenhouse gas emissions and will assist the state in  
          achieving the greenhouse gas reduction goals established by  
          Executive Order S-3-05.  Therefore, the author argues that "it  
          is reasonable and necessary to employ green building standards  
          in the construction and renovation of commercial buildings."  

          2)Sustainable Building Features

           CIWMB's website states that sustainable buildings:  1) focus on  
          life-cycle cost analysis, sustainable buildings are less costly  
          in the long term due to lower operating expenses; 2) siting new  
          construction near mass transit, designing to retain the existing  
          natural features, and use of environmentally sound landscaping  
          practices; 3) use of energy efficient materials and construction  








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          techniques; 4) use of sustainable construction materials, such  
          as recycled content materials, low-emission products, and  
          materials with high durability; 5) design for water and energy  
          efficiency; and, 6) ongoing sustainable maintenance practices  
          and products.  

          3)LEED
           
          The US Green Building Council is a national non-profit  
          organization comprised of more than 7,500 member organizations  
          and 75 regional chapters working toward the goal of transforming  
          the building industry to sustainability.  To further this goal,  
          it developed the LEED Green Building Rating System.  To earn  
          certification, a building project must meet certain  
          prerequisites and performance benchmarks (credits) within each  
          category.  Projects are awarded Certified, Silver, Gold, or  
          Platinum certification depending on the number of credits they  
          achieve. 

          LEED is the most widely-used benchmark for the design,  
          construction, and operation of high performance sustainable  
          buildings.  LEED promotes a whole-building approach to  
          sustainability by recognizing performance in five key areas of  
          human and environmental health: sustainable site development,  
          water savings, energy efficiency, materials selection, and  
          indoor environmental quality.  

           4)California's Actions on Sustainable Building

           The state has taken significant actions to encourage sustainable  
          development; however, the state has not enacted legislation  
          codifying these steps.  In Executive Order S-20-04 (The Green  
          Building Initiative), adopted in July of 2004, the Governor  
          committed the state to reducing the state's energy usage by  
          constructing, retrofitting, and operating state buildings in an  
          energy-efficient manner.  The Sustainable Building Task Force  
          (Task Force) is a partnership of more than 40 governmental  
          agencies, led by the State and Consumer Services Agency, which  
          is charged with implementing The Green Building Initiative.  It  
          comprises representatives from various state agencies with  
          specific fiscal, construction, and environmental policy  
          expertise.  

          The Task Force completed Building Better Buildings: A Blueprint  
          for Sustainable State Facilities  in April, 2001 to recommend  








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          strategies to incorporate cost-effective sustainable building  
          strategies into the development of state property.  The report  
          notes that California invests over $2.5 billion in the design,  
          construction, and renovation of state facilities annually.   
          Buildings consume more than 30% of the energy used in the US,  
          produce 25% of greenhouse gas emissions, generate approximately  
          30% of the state's solid waste stream, and affect the health,  
          comfort, and productivity of building occupants.  The blueprint  
          also identified barriers to sustainable building in state  
          government, including the lack of "uniform building performance,  
          operating, and maintenance standards for state facilities."

          The Governor acknowledged climate change as a threat to the  
          environment and committed the state to taking action to address  
          this issue by signing Executive Order S-3-05.  The order calls  
          for a reduction of greenhouse gas emissions to 2000 levels by  
          2010; to 1990 levels by 2020; and to 80 percent below 1990  
          levels by 2050.  The Climate Action Team's report, Climate  
          Action Team Report to the Governor and the Legislature,  
          identifies strategies to reduce greenhouse gas emissions that  
          include continued implementation of the Green Building  
          Initiative and energy efficiency standards for state buildings.

          Early in 2007, the state approved a life-cycle cost assessment  
          methodology to quantify the overall costs and long-term savings  
          of sustainable building.  This tool should streamline and  
          simplify the implementation of sustainable building requirements  
          for state buildings. 

           5)Related Legislation
           
          Several bills related to sustainable building have been  
          introduced in the current legislative session:

             a)   AB 35 (Ruskin) enacts the Sustainable Building Act of  
               2007, which requires the State Public Works Board (SPWB) to  
               adopt regulations establishing green building standards for  
               the construction and renovation of state buildings.

             b)   AB 792 (Garcia) establishes the Environmentally  
               Sustainable Affordable Housing Program to provide funding  
               for sustainable housing projects. 

             c)   AB 1058 (Laird) requires the California Environmental  
               Protection Agency to establish sustainable building best  








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               management practices for residential home construction.

             d)    AB 1560 (Huffman) requires the California Energy  
               Commission to establish water efficiency standards for new  
               construction.

           6)Dual Referral 

           This bill has been dual referred to the Assembly Committee on  
          Business and Professions. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092