BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 454 (Pavley)
Hearing Date: 05/16/2011 Amended: 05/04/2011
Consultant: Brendan McCarthy Policy Vote: EU&C 8-2, B&P 5-2
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BILL SUMMARY: SB 454 requires the Energy Commission and the
State Contractors License Board to collaborate to enforce
compliance with the state's building energy efficiency
standards. The bill authorizes the Energy Commission to
administratively enforce the state's appliance energy efficiency
standards.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Enforcement of building$75 $150 $150 General
*
standards
Enforcement of appliance $150 $150
$150General *
standards
* Energy Resources Program Account.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Under current law, the California Energy Commission is required
to develop and adopt energy efficiency standards for new
construction and remodeling of residential and commercial
buildings. The Contractors State License Board is required to
license and regulate building contractors, including compliance
with the state's building standards.
Also under current law, the California Energy Commission is
authorized to develop and adopt energy efficiency standards for
certain types of appliances. If the Energy Commission finds a
SB 454 (Pavley)
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violation of those standards, the Attorney General is authorized
to petition a court to enjoin the violation.
SB 454 requires the Energy Commission and the Contractors State
License Board to collaborate to identify and investigate the
failure of contractors to comply with building energy efficiency
standards and to obtain required building permits.
The bill authorizes the Energy Commission to adopt regulations
to allow the Energy Commission to impose administrative
penalties for violations of the state's appliance energy
efficiency standards. The bill caps administrative penalties at
$2,500 per violation. (The Energy Commission would also be
authorized to refer violations to the Attorney General for civil
action in court.) Any penalty revenues would be deposited in a
new account within the Energy Resources Program Account.
The bill also requires that any incentive or rebate provided by
a publicly owned utility for energy efficient appliances or
upgrades may only be provided if the recipient certifies that a
licensed contractor was used to install them and that applicable
permitting requirements were followed.
Staff estimates that the Energy Commission will need one
additional position to coordinate enforcement activities with
the Contractors State License Board and one additional position
to develop regulations and implement an administrative
enforcement program.
The Contractors State License Board indicates that any costs
under the bill would be absorbable.
Staff notes that the tax that supports Energy Resources Program
is near its statutory maximum and that the fund has a structural
deficit which will necessitate future program cuts or an
increase in the tax's statutory maximum.