BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1058
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          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  








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            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, 








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             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  :









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           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  








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               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.  









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                 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
           








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          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 








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