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