BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1809
                                                                  Page  1

          Date of Hearing:   March 23, 2010

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                    AB 1809 (Smyth) - As Amended:  March 15, 2010
           
          SUBJECT  :   Home inspections:  energy audits.

           SUMMARY  :   Revises the definition of "home inspection" to  
          include a Home Energy Rating System (HERS) energy audit.   
          Specifically,  this bill  :

          1)Requires that if a client requests an inspection of energy  
            efficiency or a HERS California home energy audit in addition  
            to a "home inspection," the home inspection report must  
            include, at a minimum, all of the following information:

             a)   An overview of how the home works as a system and how to  
               prioritize actions; 

             b)   Quality installation of heating, ventilating, and  
               air-conditioning equipment including proper sizing of  
               equipment, duct sealing, and refrigerant charge and air  
               flow;

             c)   Quality building envelope air sealing and proper levels  
               of insulation; 

             d)   Overview of ENERGY STAR or better products and  
               appliances; 

             e)   Information regarding access to a comprehensive home  
               energy audit; 

             f)   Non-energy benefits of improving the energy efficiency  
               of the home including reduction of carbon emissions;

             g)   General statement regarding opportunities to improve the  
               thermal envelope, mechanical equipment, lighting, and  
               appliances in the home; and, 

             h)   General discussion of concerns regarding combustion  
               safety.

          2)Declares legislative intent.








                                                                  AB 1809
                                                                  Page  2


           EXISTING LAW :  

          1)Allows an individual to request an energy efficiency  
            inspection as part of a home inspection.

          2)Establishes the Warren-Alquist State Energy Resources  
            Conservation and Development (SERCD) Act, which requires the  
            California Energy Commission (CEC) to establish specified  
            standards related to a statewide home energy rating program  
            for residential dwellings, known as the HERS program.

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal.

           COMMENTS  :  

           Purpose of the bill  .  According to the author's office, "Current  
          law allows consumers to request a generic energy efficiency  
          inspection as part of their home inspection.  AB 1809 simply  
          seeks to clarify existing law in order to give consumers the  
          option to choose to have a HERS inspection conducted by a  
          HERS-certified inspector."

           Background  .  CEC establishes regulations for the HERS Program to  
          certify home energy rating services in California.  The program  
          provides standards  to measure energy efficiency levels among  
          California homes and to guide investment in cost-effective home  
          energy efficiency measures. 

          The HERS scoring system, known as the HERS Index, was  
          established by the Residential Energy Services Network (RESNET),  
          a non-profit membership organization.  The HERS Index scores a  
          home out of 100 points; the lower a home's score, the more  
          energy efficient it is.  

          Currently, there are 42 HERS-certified inspectors and three  
          accredited providers that certify HERS inspectors in California.  
           To become a HERS-certified inspector, an individual must  
          complete RESNET-accredited training, receive certification from  
          a RESNET rating provider, and pass an examination. 

          Staff notes that nothing in current law precludes home buyers  
          and sellers from requesting an energy efficiency inspection from  
          HERS-certified inspectors and notes that a list of efficiency  
          efficiency items that may be inspected during an energy effiency  








                                                                  AB 1809
                                                                  Page  3

          inspection is included in statute.  
          
           Support  .  According to the sponsor, the Amerispec Home  
          Inspection Service, "Study after study has demonstrated that  
          improvements in energy efficiency are among the most  
          cost-effective ways to not only reduce residential energy costs,  
          but also reduce greenhouse gas emissions.  Many localities  
          across the United States have begun to explore the idea of  
          requiring home inspections for energy efficiency at the time of  
          sale.  Likewise, legislation that would reward homeowners for  
          improving their home energy efficiency, known as Home State or  
          Cash for Caulkers, is currently making its way through Congress.  
           These initiatives are expected to increase demand for qualified  
          energy auditors, as well as promote adoption of a common set of  
          energy efficiency standards.

          According to HouseMaster, "One of the obstacles to getting  
          Americans to invest in making their homes more energy efficient  
          is being able to assure them that the money they spend will  
          actually yield significant energy savings.  To help address this  
          challenge, what has been needed is a standard against which the  
          impact of the retrofits made by homeowners can be measured.  AB  
          1809 strengthens current law in California by authorizing  
          inspectors to perform a HERS audit, which is one of the most -  
          if not, the most - widely accepted energy efficiency ratings in  
          the market today." 

           Prior Legislation  .  AB 1976 (Maze) of 2004 would have required  
          the Contractors' State License Board to develop a process for  
          licensing home inspectors and would have made it unlawful to  
          perform a home inspection without a license.  This bill was held  
          in the Assembly Business & Professions Committee.

          SB 1332 (Figueroa) of 2002 would have provided title act  
          protection for home inspectors by making it an unfair business  
          practice for an individual to refer to himself or herself as a  
          "certified home inspector" unless he or she has met certain  
          requirements.  This bill would have required home inspectors to  
          provide disclosures prior to conducting a home inspection.  This  
          bill was held in the Assembly Business & Professions Committee.

          AB 1574 (Lowenthal), Chapter 773, Statutes of 2001, allowed a  
          buyer or seller, at the time a home is sold, to request a home  
          inspection.  This bill required home inspectors to provide  
          contact information for one or more of the following that  








                                                                  AB 1809
                                                                  Page  4

          provide home energy information:  a non-profit organization, an  
          energy provider, or a government agency.  This bill provided  
          that a buyer or seller may request an energy efficiency  
          inspection as part of a home inspection. 

          SB 258 (O'Connell), Chapter 338, Statutes of 1996, established a  
          standard of care for home inspectors, defined terms related to  
          paid home inspections, and prohibited home inspections in which  
          the home inspector has a financial interest.

           Committee Amendments  .  As written, this bill mandates all energy  
          inspections to include a report using HERS standards, which was  
          not the author's intent.  The following amendments delineate  
          what the HERS standards are, but does not mandate its use.  The  
          amendments clarify that a client has the option of requesting an  
          energy efficiency report or a HERS energy audit. 

          On page 3, line 9, after "If" strike ", in addition to a "home  
          inspection,". 

          On page 3, line 9, after "requests" strike "an inspection of  
          energy efficiency or". 

          On page 3, line 12, after "the" insert "HERS California". 

           REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          Amerispec Home Inspection Service (sponsor)
          American Home Inspection Association
          HouseMaster
          National Association of Home Inspectors, Inc. (NAHI)
          WIN Home Inspection 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B. & P. / (916) 319-3301