BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 212
                                                                  Page 1

          Date of Hearing:  April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                 AB 212 (Saldana) - As Introduced:  February 2, 2009
           
          SUBJECT  :  Energy:  building standards:  zero net energy  
          buildings. 

           SUMMARY  :  Requires the California Energy Commission (CEC) to  
          adopt standards requiring that all new residential construction  
          be "zero net energy" buildings by 2020, or by a date determined  
          by CEC on which photovoltaic technology is cost effective.  

           EXISTING LAW  : 

          1)Authorizes the State Public Works Board to develop energy and  
            water conservation and design efficiency standards for state  
            buildings.

          2)Requires CEC to prescribe energy efficiency, including water  
            as it affects energy efficiency, building design and  
            construction standards that increase energy efficiency for new  
            residential and non-residential buildings.

          3)Requires the Air Resources Board (ARB) to adopt a statewide  
            greenhouse gas (GHG) emissions limit equivalent to 1990 levels  
            by 2020 and adopt regulations to achieve maximum  
            technologically feasible and cost-effective GHG emission  
            reductions.  

          4)Pursuant to the Governor's Executive Order S-20-04, the Green  
            Building Initiative, ordered the state to take specified  
            actions, including:  a) committing to aggressive action to  
            reduce state building electricity usage by 20 percent in 2015,  
            through cost-effective efficiency measures and distributed  
            generation technologies; and, b) siting, constructing, and  
            operating all new and renovated state-owned facilities as  
            Leadership in Energy and Environmental Design (LEED) Silver or  
            higher certified buildings.

           THIS BILL  : 

          1)Requires CEC to adopt standards requiring that all new  
            residential buildings for which construction begins after  








                                                                  AB 212
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            January 1, 2020, or on a date after which CEC determines that  
            photovoltaic technology is cost effective, whichever is later,  
            to be "zero net energy" buildings.  

          2)Defines "zero net energy building" as a building that  
            implements a combination of building energy efficiency design  
            features and onsite or near-site clean distributed generation  
            that results in no net purchases from the electricity or gas  
            grid on an annual basis and produces enough electricity to  
            offset the energy use attributable to an onsite use of  
            purchased natural gas.  

          3)Requires CEC, in developing the standards, to consult with the  
            Public Utilities Commission, electric and gas utilities, and  
            other interested parties. 

          4)Makes related technical changes to existing law.

           FISCAL EFFECT  :  Potentially significant costs to CEC to develop  
          and adopt zero net energy standards.

          COMMENTS  :

           1)This bill
           
          Zero net energy buildings reduce energy usage by combining  
          stringent energy efficiency measures with on-site energy  
          generation, such as solar photovoltaic panels and geothermal  
          heat pumps.  The author notes that zero net energy buildings  
          have been successfully demonstrated since 1999.   This bill  
          requires CEC to increase energy efficiency requirements and new  
          requirements for distributed generation so that newly  
          constructed residential buildings will be zero net energy  
          buildings by 2020, or when CEC determines that photovoltaic  
          technology is cost effective.  
           
          2)California's actions on building energy efficiency
           
          The state's Energy Action Plan (prepared by CEC and the Public  
          Utilities Commission) and the Integrated Energy Policy Report  
          (prepared by CEC) encourage the state to meet energy efficiency  
          goals.  These reports also call for the combination of on-site  
          energy generation (such as solar photovoltaics) and energy  
          efficient buildings to reduce overall energy usage so that newly  
          constructed buildings are zero net energy by 2020 for the  








                                                                  AB 212
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          residential sector.  

          The Green Building Initiative, adopted in July of 2004,  
          committed the state to reducing energy usage by constructing,  
          retrofitting, and operating state buildings in an  
          energy-efficient manner.  The Sustainable Building Task Force  
          (Task Force) is a partnership of more than 40 governmental  
          agencies, led by the State and Consumer Services Agency, which  
          is charged with implementing the Green Building Initiative.  

          The Climate Action Team's report, Climate Action Team Report to  
          the Governor and the Legislature, identifies strategies to  
          reduce greenhouse gas emissions that include continued  
          implementation of the Green Building Initiative and energy  
          efficiency standards for state buildings.  The report indicates  
          that every dollar spent on energy efficiency provides about two  
          dollars in benefits.  The AB 32 Scoping Plan, approved in  
          December 2008, includes zero net energy goals for new and  
          existing homes and commercial buildings.  However, the Plan  
          states that these goals should be "percent of zero net energy"  
          targets.  The Plan also notes that retrofitting existing  
          residential and commercial buildings would achieve substantial  
          GHG emission reductions.  

           3)Feasibility 
           
          In order to meet the bill's requirements, opponents argue that  
          every new building would have to generate power on-site, which  
          could be prohibitively expensive and impractical in certain  
          applications.

          Additionally, it is not clear how the utility grid will function  
          if all new construction is off-grid.  Presumably, all new  
          construction will not have to pay into utility services, which  
          provide funding for energy efficiency and renewable energy.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           American Lung Association
          American Federation of State, County and Municipal Employees
          Bradco Kitchens and Baths
          Breathe California
          Building Codes Assistance Project
          California State Association of Counties








                                                                  AB 212
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          Clean Power Campaign
          Coalition for Clean Air
          East Bay Municipal Utility District
          Eco Timber
          Environment California
          Environmental Defense Fund
          Global Green USA
          KyotoUSA
          Modern Earth Finance
          National Wildlife Federation
          North American Insulation Manufacturers Association
          Oerlikon
          Pacific Environment
          Planning and Conservation League
          Sharp Solar Energy
          Sierra Club California
          US Green Building Council Los Angeles Chapter
          Vote Solar Initiative

           Opposition 
           
          American Council of Engineering Companies, California
          CalChamber
          California Apartment Association
          California Building Industry Association
          California Business Properties Association
          California Forestry Association
          California Manufacturers and Technology Association
          Lumber Association of California and Nevada
          Western Electrical Contractors Association

           
          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092