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         
           
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          |Ayes:|Hancock, Brownley, Laird, |Ayes:|Saldana, Laird, Hancock,  |
          |     |Saldana, Wolk, Huffman    |     |Mullin, Swanson           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Fuller, Aghazarian, Keene |Nays:|Garcia, Sharon Runner     |
          |     |                          |     |                          |
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           APPROPRIATIONS                                                  
                         (vote not available) 
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          |     |                          |     |                          |
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           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
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            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
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          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  








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          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 


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