BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1058
                                                                  Page  1

          Date of Hearing:   April 25, 2007

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Lori Saldana, 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 by July 1, 2009; following public review and  
          possible revisions, best practices would become mandatory  
          beginning January 1, 2013.  Specifically,  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)   Innovation and design processes.  

             f)   Non-motorized transportation; and, 

             g)   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 best practices and requires members of the  








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            working group to consult with the building industry,  
            environmental groups, local governments as well as the public.  
             Requires members of the working group include, but not be  
            limited to:

             a)   California Integrated Waste Management Board (CIWMB);

             b)   State Energy Resources Conservation and Development  
               Commission;

             c)   State Air Resources Board; 

             d)   Department of Water Resources; 

             e)   Department of Housing and Community Development; 

             f)   Department of General Services; and, 

             g)   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 relevant  
            existing 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,  








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            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.

           EXISTING LAW  :

          1)Provides, pursuant to the Governor's Executive Order S-3-05, 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)Requires, pursuant to the Governor's Executive Order S-20-04,  
            The Green Building Initiative, the state to take specified  
            actions, including: 

             a)       Committing to aggressive action to reduce state  
               building electricity usage by 20 percent in 2015; 

             b)       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

             c)       Developing a life cycle cost assessment methodology  
               to evaluate the cost effectiveness of building design and  
               construction decisions.

          3)Identifies specific goals and responsibilities for the state,  
            including energy efficiency goals for state buildings, under  
            the Green Building Action Plan (Plan).  The Plan also directs  
            the California Energy Commission (CEC) and State Licensing  
            Boards to develop building code amendments for non-residential  








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            buildings that increase energy efficiency.

          4)Requires the CEC to adopt energy efficiency standards for  
            residential construction, which establish requirements for  
            heating, ventilation, and air conditioning systems, water  
            heating systems, and lighting.  The standards apply to all new  
            residential construction.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           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.

          HCD estimates that over 220,000 new housing units will be needed  
          annually over the next 15 years to accommodate population  
          growth.  CIWMB 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."

           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." 









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          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 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.

           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  








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                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.  

                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,  








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                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.

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

          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.

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

          AB 888 (Lieu) requires sustainable building elements to be  
          incorporated into building standards. 

          AB 1460 (Salda?a) gives priority scoring to applicants for state  
          affordable housing funds who include sustainable building  
          methods in construction of housing units.  

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

           Double referred  :  The Assembly Committee on Rules referred AB  
          1058 to Natural Resources and Housing and Community Development  
          Committee.  The bill passed the Assembly Committee on Natural  
          Resources on April 16, 2007 by a vote of 6-3.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Lung Association of California









                                                                  AB 1058
                                                                  Page  8

           Opposition 
           
          California Building Industry Association
           
          Analysis Prepared by  :    Andrew Zingale and Hubert Bower / H. &  
          C.D. / (916) 319-2085