BILL ANALYSIS AB 1058 Page 1 ASSEMBLY THIRD READING AB 1058 (Laird) As Amended March 29, 2007 Majority vote NATURAL RESOURCES 6-3 HOUSING 5-2 ----------------------------------------------------------------- |Ayes:|Hancock, Brownley, Laird, |Ayes:|Saldana, Laird, Hancock, | | |Saldana, Wolk, Huffman | |Mullin, Swanson | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Fuller, Aghazarian, Keene |Nays:|Garcia, Sharon Runner | | | | | | ----------------------------------------------------------------- APPROPRIATIONS (vote not available) ----------------------------------------------------------------- | | | | | ----------------------------------------------------------------- SUMMARY : Requires the California Environmental Protection Agency (CalEPA) to develop best practices for green building in new residential construction. Specifically, this bill : 1)Defines "best practices" as green building best practices for residential home construction, which include: energy efficiency, conservation, or renewable generation measures; water efficiency, conservation, and reuse measures; materials and resource efficiency, conservation, and reuse measures; indoor environmental quality measures, including indoor air quality; non-motorized transportation; and, 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: California Integrated Waste Management Board (CIWMB); Air AB 1058 Page 2 Resources Board; Department of Water Resources; Department of Housing and Community Development; Department of General Services; and, California Building Standards Commission (BSC). 4)Requires that each state agency in the working group take the lead in developing best practices in its particular area of expertise and to determine the appropriate minimum best practices that must be met to consider a residence sustainable and environmentally sound (minimum standards). Requires CalEPA to coordinate the integration of the best practices 5)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). 6)Requires all entities involved in the development of the best practices and the minimum standards to consider relevant green building guidelines. 7)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. 8)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. 9)On or before January 1, 2012, CalEPA shall submit the revised (mandatory) minimum standards for adoption by BSC. BSC may revise, but not reduce, the minimum standards submitted by CalEPA. 10) 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 : According to the Assembly Appropriations Committee, moderate costs, in the range of $300,000 annually from 2008-09 through 2011-12, to CalEPA to support the activities of the state agency working group, to coordinate state agency-developed minimum standards, to develop an AB 1058 Page 3 education program, and to pay BSC costs to review and revise these minimum standards. (General Fund or various special regulatory funds). COMMENTS : According to the author, 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 three to five tons of waste; California residences use 5.6 million acre-feet of applied water annually; and, the residential sector accounts for approximately 31% 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 Web site, "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." According to the author, "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 Web site outlines the benefits of residential green buildings, including: 1) increasing demand for recycled content building products creates markets for the material collected in municipal recycling programs; 2) reducing and recycling construction wastes directly benefits local jurisdictions working to meet the state's solid waste diversion requirements; 3) recycling construction waste is often less expensive than disposal; 4) making homes more energy efficient results in monthly utility savings for residents; 5) using onsite electricity generation, via solar or other methods, reduces the AB 1058 Page 4 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; 6) using low-flow water fixtures and water efficient landscaping can reduce water demand and lower monthly bills; 7) cities that embrace green building can reduce the impacts on their infrastructure including roads, water treatment, and storm water run-off; and, 8) 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. Although the state has not directly addressed residential green building specifically, the state has taken action to encourage sustainable development, including: 1) 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% 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) 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. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000995