BILL ANALYSIS AB 1058 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2007-2008 Regular Session BILL NO: AB 1058 AUTHOR: Laird AMENDED: July 2, 2007 FISCAL: Yes HEARING DATE: July 10, 2007 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : GREEN BUILDING STANDARDS SUMMARY : Existing law : 1)Under the California Integrated Waste Management Act of 1989, contains requirements for recycling certain types of materials (e.g., metallic discards, papers, plastic trash bags, rigid plastic packaging containers, cell phones, paving materials, and waste tires), provides programs for recycling at certain types of facilities (e.g., schoolsites, large venues), and requires model ordinances for certain matters (e.g., adequate areas for collection and loading of recyclable materials in development projects; diversion of construction and demolition materials; solid waste reduction, reuse, and recycling at large venues). The Act creates the California Integrated Waste Management Board (CIWMB) under the California Environmental Protection Agency (CalEPA). 2)Under the California Building Standards Law, sets procedures for adopting state building codes that require a building standard adopted or proposed by state agencies to be submitted to the California Building Standards Commission (BSC) for approval or adoption prior to codification. Where no state agency has authority to adopt building standards applicable to state buildings, the BSC must adopt, approve, codify, and publish building standards for the design and construction of state buildings. This bill creates the Green Building Standards Law that: AB 1058 Page 2 1) Requires CalEPA to develop, adopt, and make available voluntary best practices by July 1, 2009, for residential home construction that address certain matters (e.g., energy efficiency, water efficiency, materials and resources, indoor environmental quality). 2) Requires CalEPA to coordinate a working group consisting of certain state entities (e.g., BSC, CIWMB, State Energy Resources Conservation and Development Commission, Air Resources Board) that must consult representatives from certain organizations in developing voluntary best practices. Entities involved in this effort must consider current guidelines (e.g., US Green Building Council's Leadership in Energy and Environmental Design (LEED) for homes rating system, 2005 Build It Green "New Home Construction Green Building Guidelines). 3) Each state entity must provide the BSC and CalEPA with an analysis of the proposed best practices that include potential overlap with other agencies' jurisdiction, assurance that all aspects exceed the California Building Standards Code, and justification of the best practices. 4) Requires the BSC to review the voluntary best practices prior to adoption to ensure that nothing falls below or conflicts with standards in the California Building Standards Code (Title 24). If the BSC identifies conflict with the Code, CalEPA must revise its best practices to be in conformance with the code. 5) Requires CalEPA to develop an education program informing local entities of green building benefits and encourage use of the best practices. 6) Requires CalEPA, beginning July 1, 2011, to conduct a public review of the best practices with state entities and certain representatives to determine the level of use and effectiveness in a representative sampling of residential construction. 7) Requires CalEPA to reconvene the working group to develop proposed building standards based on the best practices and AB 1058 Page 3 their review. Each state entity must develop proposed building standards related to its area of expertise. CalEPA must be responsible for coordinating proposed building standards and submitting a comprehensive set of proposed building standards to the BSC by July 1, 2012, for BSC adoption pursuant to the California Building Standards Code. 8) Authorizes the BSC to modify the proposed building standards as long as the modifications do not reduce the environmental benefits or efficiencies that would have been achieved by the proposed standards. 9) Requires all residential occupancies for which a project application is deemed complete on or after July 1, 2013, to comply with the building standards proposed by CalEPA if the BSC rejects the proposed standard, until the date that the proposed CalEPA building standards are adopted by the BSC take effect. 10)Contains related legislative intent. COMMENTS : 1) Purpose of Bill . According to the author, "In 2005, California had approximately 12.9 million existing housing units and over 211,000 new units were constructed. In 2003, construction investment in California for new residential housing totaled $34 billion. While residential housing is [a] significant economic force, the construction of a 2,000 square foot home generates 3 to 5 tons of waste, California residences use 5.6 million acre-feet of applied water annually, and the residential sector accounts for roughly 31% of the electricity consumed in the state." The author also notes that "Green building practices utilize energy, water, and materials efficiently throughout the building life cycle; enhance indoor air quality; and incorporate environmentally preferable products. While green building practices have been encouraged by the past three Governors through Executive Orders, none of these have included residential. As shown above, California AB 1058 Page 4 residences have a large impact on the environment, and by providing guidelines on how to most efficiently build/operate a home to minimize the environmental impact we can make a significant difference in that impact." 2) Opposition and support concerns . Opponents of AB 1058 are generally concerned about CalEPA responsibility in developing the green building standards and want the BSC to have that responsibility. According to opponents, "We also feel that a set of voluntary green building guidelines should be developed, adopted, and field tested prior to the adoption of mandatory statewide standards." The BSC believes that responsibility for coordinating development of green building standards is "inappropriately placed with [CalEPA] and "green building measures should be submitted to [BSC] for technical review, approval and publication" According to supporters, "The residential sector accounts for 31 percent of the electricity used in the state, and electricity generation is a major source of greenhouse gas emissions. Housing construction and operation also results in other significant environmental impacts: the construction of an average 2,000 square foot house generates 3-5 tons of waste, and common building products emit formaldehyde and other dangerous chemicals." Supporters also note that "More than a decade of experience has demonstrated that there is no appreciable difference in the construction costs of LEED-compliant buildings, and any additional up-front costs are paid back many times over in reduced costs of energy and other resources. 3) Related legislation . AB 1337 (Ruskin) of 2006 required the CIWMB to develop green building standards for state buildings and was vetoed because Governor Schwarzenegger did not believe the CIWMB had the expertise to address these building standard matters. AB 2160 (Lieu) Chapter 742, Statutes of 2006, requires the Department of General Services to define a life cycle cost analysis model to be used for certain state building design and construction decisions, and requires the State Energy Resources Conservation and Development Commission to report on certain related matters. AB 2880 (Lieu) of 2006 requires AB 1058 Page 5 the CIWMB to provide certain greenbuilding information on an Internet website and to create an advisory committee to assist the board in developing and updating the website (held in the Senate Appropriations Committee). AB 2928 (Laird) of 2006 addressed voluntary green building guidelines for residential construction and was referred to the Senate Rules Committee pursuant to Senate Rule 29.10 due to amendments on the Senate Floor giving responsibility for the guidelines to the BSC. AB 35 (Ruskin) requires state buildings to meet sustainable building standards and AB 888 (Lieu) requires green building standards for nonresidential buildings. AB 35 was approved by the Senate Environmental Quality Committee July 2, 2007 (5-2), and AB 888 was also approved on that date (4-2). AB 1058 was approved by the Senate Transportation and Housing Committee June 26, 2007 (7-4). 4) Outstanding issues . AB 35 and AB 888 require standards to meet, at a minimum, standards described in the LEED gold rating. It may be appropriate for AB 1058 to be consistent with that approach when the LEED standards are effective in the fall (although there may be concerns about referencing a standard that is not yet adopted). AB 1058 requires CalEPA to conduct a review of best practices with representatives from state entities and the residential construction industry to determine the level of use and effectiveness in a representative sampling of residential construction (page 6, lines 17 to 25). Representatives from local governments should also be involved in this effort. SOURCE : Assemblymember Laird SUPPORT : American Lung Association, California Coastal Protection Network, California Independence Solar Workforce Homes, California League of Conservation Voters, Defenders of Wildlife, Environment California, Environment California, Environmental Defense, Natural Resources Defense Council, Planning and Conservation AB 1058 Page 6 League, Santa Cruz, Sierra Club California, Silicon Valley Leadership Group OPPOSITION : Building Standards Commission, California Building Industry Association, California Apartment Association, California Business Properties Association, California Chamber of Commerce, California Major Builders Council, California Manufacturers & Technology Association, Consulting Engineers and Land Surveyors of California, Department of Housing and Community Development, Shapell Industries, Western Electrical Contractors Association