BILL ANALYSIS AB 1058 Page 1 Date of Hearing: April 16, 2007 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Loni Hancock, Chair AB 1058 (Laird) - As Amended: March 29, 2007 SUBJECT : Green building construction: best practices. SUMMARY : Requires the California Environmental Protection Agency (CalEPA) to convene a working group to develop voluntary best practices for green building in new residential construction. EXISTING LAW : 1)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. 2)Pursuant to the Governor's Executive Order S-20-04, The Green Building Initiative, orders the state to take specified actions, including: 1) committing to aggressive action to reduce state building electricity usage by 20 percent in 2015; 2) designing, constructing, and operating all new and renovated state-owned facilities as Leadership in Energy and Environmental Design (LEED) Silver or higher certified buildings; and, 3) developing a life cycle cost assessment methodology to evaluate the cost effectiveness of building design and construction decisions. 2)The executive order was accompanied by the Green Building Action Plan (Plan), which identifies specific goals and responsibilities for the state, including energy efficiency goals for state buildings. The Plan also directs the California Energy Commission (CEC) and State Licensing Boards to develop building code amendments for non-residential buildings that increase energy efficiency. 3)CEC is required to adopt energy efficiency standards for residential construction, which establish requirements for AB 1058 Page 2 heating, ventilation, and air conditioning systems, water heating systems, and lighting. The standards apply to all new residential construction. THIS BILL : 1)Defines "best practices" as green building best practices for residential home construction, which include: a) Energy efficiency, conservation, or renewable generation measures; b) Water efficiency, conservation, and reuse measures; c) Materials and resource efficiency, conservation, and reuse measures; d) Indoor environmental quality measures, including indoor air quality; e) Non-motorized transportation; and, f) A method for determining life-cycle cost, including evaluating the relative effectiveness, cost, and life-cycle savings of individual or multiple green building measures. 2)Requires CalEPA, with the working group and in consultation with representatives from the building industry, environmental advocacy groups, local governments, and other interested parties, to develop, adopt, and make available voluntary best practices on or before July 1, 2009. 3)Establishes a working group to assist CalEPA in the development of the best practices including, but not limited to: a) California Integrated Waste Management Board (CIWMB); b) State Air Resources Board; c) Department of Water Resources; d) Department of Housing and Community Development; e) Department of General Services; and, AB 1058 Page 3 f) California Building Standards Commission (BSC). 4)Requires that each state agency in the working group shall take the lead in developing best practices in its particular area of expertise and requires CalEPA to coordinate the integration of the best practices. 5)Requires each state agency in the working group to determine the appropriate minimum best practices that must be met to consider a residence sustainable and environmentally sound (minimum standards) and requires CalEPA to coordinate the integration of minimum standards. 6)Requires BSC to review all aspects of the best practices and minimum standards to ensure that the standards do not "fall below" the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations). 7)Requires all entities involved in the development of the best practices and the minimum standards to consider other relevant green building guidelines. 8)Requires CalEPA to develop an education program to inform local entities of the benefits of green building and to encourage the use of the best practices. 9)Requires CalEPA and the working group, beginning January 1, 2011, to conduct a public review of the best practices and minimum standards and may make revisions based on the review. 10)On or before January 1, 2012, CalEPA shall submit the revised minimum standards for adoption by BSC. BSC may revise, but not reduce, the minimum standards submitted by CalEPA. 11)Requires that on and after January 1, 2013, all new homes shall meet the minimum standards adopted by BSC. If BSC does not adopt the standards by that date, all new homes shall meet the minimum standards developed by CalEPA and the working group until BSC adopts minimum standards. FISCAL EFFECT : Unknown. COMMENTS : AB 1058 Page 4 1)Background According to the author's office, there were approximately 12.9 million housing units in the state last year and over 211,000 new housing units were constructed. In 2003, investment in new residential construction totaled $34 million. This construction results in significant environmental impacts: the construction of a conventional 2,000 square foot home generates between 3 to 5 tons of waste; California residences use 5.6 million acre-feet of applied water annually; and the residential sector accounts for approximately 31 percent of the electricity used in the state. While recent Executive Orders encourage green building practices in state facilities, commercial construction, and schools, they do not address residential construction. CIWMB estimates that over 220,000 new housing units will be needed annually over the next 15 years to accommodate population growth. CIWMB also notes that many common building products used in household construction emit formaldehyde and other chemicals known to have adverse health impacts. According to CIWMB's website, "houses in California must comply with the most stringent energy code in the country, but this will not be enough to reduce the impacts housing has on the state's environment. In order to be truly effective, an integrated approach to building must be pursued." 2)Benefits of Residential Green Building According to the author's office, "green building practices utilize energy, water, and materials efficiently throughout the building's life cycle; enhance indoor air quality; and incorporate environmentally preferable products." CIWMB's website outlines the benefits of residential green buildings, including: a) Increasing demand for recycled content building products creates markets for the material collected in municipal recycling programs; b) Reducing and recycling construction wastes directly benefits local jurisdictions working to meet the state's solid waste diversion requirements; c) Recycling construction waste is often less expensive AB 1058 Page 5 than disposal; d) Making homes more energy efficient results in monthly utility savings for residents; e) Using onsite electricity generation, via solar or other methods, reduces the state's dependence on out-of-state power generation, provides electricity back to the grid during the day, saves consumers money, and reduces air-pollution; f) Using low-flow water fixtures and water efficient landscaping can reduce water demand and lower monthly bills; g) Cities that embrace green building can reduce the impacts on their infrastructure including roads, water treatment, and storm water run-off; and h) Increasing the use of infill land and/or encouraging redevelopment in underutilized sites reduces the consumption of farmland and eases transportation burdens since these sites are generally located in developed areas near jobs and services. 3)Existing Sustainable Building Efforts a) State Efforts Although the state has not directly addressed residential green building specifically, the state has taken action to encourage sustainable development, including: i) Executive Order S-3-05: The Governor acknowledged climate change as a threat to the environment and committed the state to taking action to address this issue in 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 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. AB 1058 Page 6 ii) Executive Order S-20-04, The Green Building Initiative: In Executive Order S-20-04, adopted in July of 2004, the Governor committed the state to actively reducing the state's energy usage by constructing, retrofitting, and operating state buildings in an energy-efficient manner, including implementing the measures identified in the Green Building Action Plan. b) Other Efforts Some local governments and organizations have taken steps to encourage residential green building, including: i) LEED for Homes The LEED for Homes program is being developed by the US Green Building Council (USGBC) with input from local and national stakeholder groups. It is a voluntary initiative promoting sustainable practices within the residential construction industry. According to the USGBC website, the program is intended to provide a tool for homebuilders, homeowners, and local governments for building environmentally sound, healthy, and resource-efficient places to live. Currently, the USGBC has a pilot rating system available for residential construction and is testing the efficacy of the pilot system. The pilot program will be completed by December 2006; the final LEED for Homes rating system is expected to be completed in 2007. ii) Alameda County's New Home Construction Green Building Guidelines StopWaste.org, a public entity comprised of the Alameda County Waste Management Authority and the Alameda County Source Reduction and Recycling Board, developed the guidelines in 2000 to offer suggestions to builders to minimize construction-related waste, create healthier and more durable homes, reduce operating costs for homeowners, support local manufacturers and suppliers of resource-efficient building materials, and to identify methods to reduce the impacts of building in Alameda County communities; including solid waste management, water conservation, energy efficiency and resource conservation. 4)Related Legislation AB 1058 Page 7 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 888 (Lieu) requires sustainable building elements to be incorporated into building standards. d) AB 1560 (Huffman) requires the California Energy Commission to establish water efficiency standards for new construction. 5)Dual Referral This bill is dual referred to the Committee on Housing and Community Development. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 AB 1058 Page 8