BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2408
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 2408 (Skinner)
          As Introduced  February 24, 2012
          Majority vote 

           NATURAL RESOURCES   6-3         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Brownley,        |Ayes:|Fuentes, Blumenfield,     |
          |     |Dickinson, Huffman,       |     |Bradford, Charles         |
          |     |Monning, Skinner          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Ammiano, Hill,     |
          |     |                          |     |Lara, Mitchell, Solorio   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Grove, Halderman  |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Repeals the requirement that activities undertaken by 
          the California Energy Commission (CEC) to develop a 
          comprehensive program to achieve greater energy savings in 
          existing residential and nonresidential buildings, formally 
          known as the AB 758 (Skinner), Chapter 470, Statutes of 2009, 
          the Comprehensive Energy Efficiency Program for Existing 
          Buildings (AB 758 Program), be funded by the American Recovery 
          and Reinvestment Act (ARRA).  

           EXISTING LAW  requires CEC to establish regulations to develop 
          and implement a comprehensive program to achieve greater energy 
          savings in California's existing residential and nonresidential 
          building stock.  The program is targeted at buildings that "fall 
          significantly below" the current Title 24 energy efficiency 
          standards.  Requires the program to: 

          1)Minimize the overall costs of establishing and implementing 
            the energy efficiency program requirements. 

          2)For residential buildings: 

             a)   Ensure that the energy efficiency assessments, ratings, 
               or improvements do not unreasonably or unnecessarily affect 
               the home purchasing process or the ability of individuals 
               to rent housing; and, 








                                                                  AB 2408
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             b)   Determine the appropriateness of the Home Energy Rating 
               System program to support the goals of the program.

          3)For nonresidential buildings: 

             a)   Ensure that the energy improvements do not have an undue 
               economic impact on California businesses; and,

             b)   Determine the availability of an appropriate 
               cost-effective energy efficiency assessment system.

          4)Coordinate with related departments and avoid duplication of 
            existing programs.  

          5)Requires that this program be funded by ARRA or other sources 
            of non-state funds.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill has no direct state costs; however, this 
          bill may result in cost pressure of an unknown amount, but 
          potentially in the millions of dollars, to fund AB 758 Program 
          activities from state funds.

           COMMENTS  :  AB 758 (Skinner), Chapter 470, Statutes of 2009, 
          established the AB 758 Program.  The program has been 
          successful; it has implemented 11 pilot programs throughout 
          California to assess and retrofit inefficient buildings.   
          Benefits from the program are not limited to increased energy 
          efficiency and reduced electricity costs; the pilot programs 
          have also created green jobs.  For example, one pilot located in 
          the Sacramento area "will provide Home Energy Rating system 
          Phase II audits and/or home performance retrofits to 15,150 
          homes, preserve or create 1,148 jobs, provide high quality 
          retrofits to 1,050 low-income homes and 100 moderate-income 
          foreclosed, purchased, and renovated homes, Ýand] create 
          significant demand for building science professionals?"  

          According to the author, the AB 758 Program was intended to be 
          an ongoing program funded through any available funding sources. 
           Assembly Member Skinner submitted a letter to the CEC 
          clarifying this intent at the time the bill was chaptered.  

          This bill repeals the requirement that the AB 758 Program be 








                                                                  AB 2408
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          funded exclusively by ARRA and other non-state funds, which will 
          allow CEC to pursue all available funding options.  

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


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