BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 1058

                                                                  Page 1


          GOVERNOR'S VETO
          AB 1058 (Laird)
          As Amended September 7, 2007
          2/3 vote

           ----------------------------------------------------------------- 
          |ASSEMBLY:  |45-34|(June 5, 2007)  |SENATE: |24-14|(September 11, |
          |           |     |                |        |     |2007)          |
           ----------------------------------------------------------------- 

           ----------------------------------------------------------------- 
          |ASSEMBLY:  |48-29|(September 12,  |        |     |               |
          |           |     |2007)           |        |     |               |
           ----------------------------------------------------------------- 

          Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Requires the Department of Housing and Community  
          Development (HCD) and ultimately the Building Standards  
          Commission (BSC) to adopt best practices and building standards  
          for green building in new residential construction.   
          Specifically this bill, 

          1)Creates the Green Building Standards Law for residential  
            buildings.

          2)Adds definitions and references regarding 'green building' to  
            the building code in the Health and Safety Code. 

          3)Requires a state agency to submit to the BSC, on or before  
            July 1, 2009 any green building standards that have previously  
            been reviewed, approved or adopted by the BSC.

          4)Requires the HCD to develop, on or before July 1, 2009, green  
            building standards, as defined, for residential occupancies  
            and submit them to the BSC for review, adoption, approval and  
            publication. 

          5)Requires HCD to coordinate a working group consisting of  
            applicable state entities (e.g., the California Environmental  
            Protection Agency (CalEPA), California Integrated Waste  










                                                                  AB 1058

                                                                  Page 2


            Management Board, State Energy Resources Conservation and  
            Development Commission, Air Resources Board) and must consult  
            representatives from certain organizations in developing the  
            green building standards.

          6)Requires the state entities, as prescribed, to identify  
            relevant green building guidelines from existing sources and  
            develop recommendations for green building standards related  
            to its particular area of expertise.

          7)Requires HCD to develop an education program informing local  
            entities of green building benefits and encourage use of the  
            best practices. 

          8)Requires BSC, on or before July 1, 2010, to publish approved  
            green building standards. 

          9)Requires, on or before January 1, 2013, that California homes  
            constructed under the California green building standards  
            developed pursuant to this bill, be substantially equivalent  
            to or exceed homes built under other recognized green building  
            guidelines.

          10)Authorizes the BSC to modify the proposed building standards  
            as long as the modifications do not reduce the environmental  
            benefits or efficiencies or public health protections that  
            would have been achieved by the proposed standards. 

          11)Contains related legislative intent. 
           
          The Senate amendments  :

          1)Move the content of the bill from the Public Resources Code to  
            the Health and Safety Code.

          2)Change the coordinating agency from CalEPA to HCD in  
            conjunction with the BSC.

          3)Add 'local government entities' to the list of entities HCD  
            must consult with as part of the public review required by the  
            bill.










                                                                  AB 1058

                                                                  Page 3



          4)Stipulate that the provisions of this bill shall not prohibit,  
            limit, or supersede other green building requirements  
            developed pursuant to existing authority. 

          5)Make other technical and conforming changes.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the current version of the bill.  

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, moderate costs, up to $300,000 annually from 2008-09  
          through 2011-12, to develop standards.  (General Fund or various  
          special regulatory funds). Unknown increase in construction  
          costs, offset by unknown potential savings.

           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."











                                                                  AB 1058

                                                                  Page 4


          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  
          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  










                                                                  AB 1058

                                                                  Page 5


            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.
           
          GOVERNOR'S VETO MESSAGE  :

               I support the development of green building standards  
               and share the goals of this bill.  However, if  
               implemented [,] provisions in this bill would put the  
               health and safety of Californians at risk by being in  
               conflict with current safety standards.  The national  
               standards in this bill could require that wood support  
               studs be placed twenty-four inches apart instead of  
               the California seismic safety standard of sixteen  
               inches, thus endangering the safety of the home.   
               Additionally, the guidelines for planting vegetation  
               for shade would violate California fire standards for  
               the most dangerous areas by placing vegetation next to  
               the house, not the 100 foot firebreak by California  
               law.

               Additionally, building standards should not be  
               statutory.  The Building Standards Commission was  
               created to ensure an open public adoption process  
               allowing experts to develop standards and periodic  
               updates to the building codes.

               Allowing private entities, such as proposed in this  
               bill, to dictate Californian's building standards  
               usurps the state's authority to develop and adopt  
               those standards and could compromise the health and  
               safety of Californians.  I encourage state agencies to  
               review all nationally recognized programs and glean  
               from those programs, standards that promote greener  
               construction, energy and water conservation, and  










                                                                  AB 1058

                                                                  Page 6


               reduce Green House Emissions.

               It is imperative to expedite the greening of  
               Californian's building standards.  As such, I am  
               directing the California Building Standards Commission  
               to work with specified state agencies on the adoption  
               of green building standards for residential,  
               commercial, and public building construction for the  
               2010 code adoption process.
           

          Analysis Prepared by  :  Elizabeth MacMillan / Nat. Res. / (916)  
          319-2092 


                                                               FN: 0003724