BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 888| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 888 Author: Lieu (D), et al Amended: 9/7/07 in Senate Vote: 21 SENATE ENV. QUALITY COMMITTEE : 4-2, 7/2/07 AYES: Simitian, Kuehl, Lowenthal, Steinberg NOES: Runner, Aanestad NO VOTE RECORDED: Florez SENATE APPROPRIATIONS COMMITTEE : 10-7, 8/30/07 AYES: Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza, Ridley-Thomas, Simitian, Steinberg, Yee NOES: Cox, Aanestad, Ashburn, Battin, Dutton, Runner, Wyland ASSEMBLY FLOOR : 43-33, 6/5/07 - See last page for vote SUBJECT : Green building standards SOURCE : Author DIGEST : This bill requires new commercial buildings for which a public agency deems the application for a development project complete on or after July 1, 2013, and that are 50,000 feet or greater be designed constructed and operated to meet the applicable standards described in the United States Green Building Council's Leadership in Energy and Environmental Design gold rating or its equivalent, unless the state adopts specified minimum green building CONTINUED AB 888 Page 2 standards, in which case those commercial buildings will be required to meet the adopted standards. Senate Floor Amendments of 9/7/07 (1) strike legislative intent relating to studies and results of green building standards, (2) strike an exemption for University of California owned or leased buildings, (3) extend compliance due dates from July 1, 2012, to July 1, 2013, (4) authorize the state to consider existing relevant green building guidelines if the state adopts minimum green building standards, and (5) make technical clarifying amendments. ANALYSIS : Under existing Law, the California Building Standards Law, sets procedures for adopting state building codes that require a building standard adopted or proposed by state agencies to be submitted to the California Building Standards Commission (BSC) for approval or adoption prior to codification. Where no state agency has authority to adopt building standards applicable to state buildings, the BSC must adopt, approve, codify, and publish building standards for the design and construction of state buildings. This bill: 1. Defines "Minimum green building standards" to mean green building standards for commercial buildings that meet, at a minimum, the Green Building Council's Leadership in Energy and Environmental Design (LEED) gold rating or equivalent, and include, but are not limited to, all of the following: A. Sustainability of the site. B. Water efficiency. C. Energy and atmosphere. D. Materials and resources and sustainable wood. E. Indoor environmental quality. F. Innovation and design process. AB 888 Page 3 G. Nonmotorized transportation. H. A method for determining life-cycle cost, including evaluating the relative effectiveness, cost, and life-cycle savings, if any, by the use of individual or multiple green building measures specified in this bill. 2. Requires a new commercial building for which a public agency, on or after July 1, 2013, deems the application complete and that is 50,000 square feet or greater, shall be designed, constructed, and operated to meet the applicable standards described in the LEED gold rating or its equivalent. 3. Provides that if the state adopts minimum green building standards, a new commercial building for which a public agency on or after July 1, 2012, deems the application complete, and that is 50,000 square feet or greater shall meet those adopted standards. Also provides that in considering the minimum green building standards, the state may consider existing relevant guidelines, including but not limited to, the Green Building Initiative's "Green Globes" rating system. 4. Stipulates that for the purposes of determining compliance with the LEED gold rating or its equivalent, with respect to materials and resources and sustainable wood, a project that uses wood products with a credible third party sustainable forest certification, as determined by the California Environmental Protection Agency, shall be deemed to be in compliance. 5. Stipulates that these provisions shall not prohibit, limit, or supersede other green building standards pursuant to existing authority. Related legislation AB 35 (Ruskin) - 2007-08 Session . Requires state buildings to meet sustainable building standards. (Currently on Senate Third Reading File) AB 1058 (Laird) - 2007-08 Session . Provides for green AB 888 Page 4 building best practices and standards for residential construction. (Currently on Senate Third Reading File) AB 1337 (Ruskin) - 2005-06 Session . Would have required the California Integrated Waste Management Board (CIWMB) to develop green building standards for state buildings. The bill was vetoed because Governor Schwarzenegger did not believe the CIWMB had the expertise to address these building standard matters. AB 2160 (Lieu), Chapter 742, Statutes of 2006 . Requires the Department of General Services to define a life cycle cost analysis model to be used for certain state building design and construction decisions, and requires the State Energy Resources Conservation and Development Commission to report on certain related matters. AB 2880 (Lieu) - 2005-06 Session . Would have required the CIWMB to provide certain green building information on an Internet website and to create an advisory committee to assist the board in developing and updating the website. The bill was held in the Senate Appropriations Committee. AB 2928 (Laird) - 2005-06 Session . Would have addressed voluntary green building guidelines for residential construction. Died on Senate Third Reading File. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No According to the Senate Appropriations Committee analysis: Fiscal Impact (in thousands) Major Provisions 2007-08 2008-09 2009-10 Fund Develop standards Unknown, in excess of $150 GF Adopt standards Minor and absorbable GF Implement standards Unknown AB 888 Page 5 increase, in construction GF in applicable state costs offset by unknown, potentially buildings savings in out years SUPPORT : (Verified 9/10/07) American Lung Association California Coastal Protection Network California League of Conservation Voters City and County of San Francisco City of Los Angeles County of Santa Cruz Defenders of Wildlife Environmental Defense Health Officers Association of California Metropolitan Water District of Southern California Natural Resources Defense Council Planning and Conservation League Sacramento Metropolitan Air Quality Management District Sierra Club California OPPOSITION : (Verified 9/10/07) American Chemistry Council American Forest & Paper Association Association of General Contractor Building Owners and Managers Association of California California Apartment Association California Broadcasters Association California Building Industry Association California Building Officials California Business Properties Association California Chamber of Commerce California State University California Forestry Association California League of Food Processors California Manufacturers and Technology Association California Retailers Association Consulting Engineers and Land Surveyors of California International Council of Shopping Centers Lumber Association of California and Nevada National Association of Industrial and Office Properties Retail Industry Leaders Association AB 888 Page 6 Western Electrical Contractors Association ARGUMENTS IN SUPPORT : According to supporters, "Buildings account for almost 40 percent of all carbon dioxide emitted in the U.S., more than any other sector. In fact, according to a United Nations study, implementation of green building standards could do more to reduce greenhouse gas emissions than all the actions agreed to under the Kyoto Protocol. The enactment of AB 32 requires the state to take early action to reduce greenhouse gas emissions in the largest mission sectors." Supporters also note that "there is no appreciable difference in the construction costs of LEED-compliant buildings, and any additional up-front costs are paid back many times over in reduced costs of energy and other resources. ARGUMENTS IN OPPOSITION : The California Chamber of Commerce, in opposition, states "Our collective members support green building standards and are actively engaged in proliferation of the technology. We have already put this state on the forefront of making the intent of this bill a reality. Our members want to see green buildings flourish, but do not believe this mandate is the right process to make that happen and have the following issues with the proposes policy: "1.AB 888 mandates the state to adopt building standards written by a private entity whose process is not open to public input or scrutiny. The state should not relinquish its authority to set and maintain such building codes. "2.AB 999 is unnecessary and duplicative of process already underway at the Building Standards Commission, which could produce a statewide standard as early as the next adoption cycle. "3.AB 888 mandates a private green building standard that discourages the use of wood, one of the most renewable resources, grown here in California. "4.AB 888 mandates an arbitrary building size for which there is no evidence that it is economically feasible to AB 888 Page 7 construct buildings that can meet the standards set by the bill. This standard could unintentionally provide an advantage to the largest national companies and hurt medium and small companies that do not have the ability to absorb construction and bureaucratic cost increases mandated in the bill. "5.AB 888 does not conform to the other green building mandates contained in AB 1058 and AB 35 which could cause conflicts in the building codes. Building standards should be consistent and based on function - not who owns the building." ASSEMBLY FLOOR : AYES: Arambula, Bass, Beall, Berg, Brownley, Caballero, Charles Calderon, Carter, Coto, De La Torre, De Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes, Hancock, Hayashi, Hernandez, Huffman, Jones, Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu, Mendoza, Mullin, Nava, Portantino, Price, Richardson, Ruskin, Salas, Saldana, Solorio, Swanson, Torrico, Wolk, Nunez NOES: Adams, Aghazarian, Anderson, Benoit, Berryhill, Cook, DeVore, Duvall, Emmerson, Fuller, Gaines, Galgiani, Garcia, Garrick, Horton, Houston, Huff, Jeffries, Keene, La Malfa, Maze, Nakanishi, Niello, Parra, Plescia, Sharon Runner, Silva, Smyth, Spitzer, Strickland, Tran, Villines, Walters NO VOTE RECORDED: Blakeslee, Davis, Ma, Soto TSM:do 9/10/07 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****