BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 454 (Pavley)
          
          Hearing Date: 05/26/2011        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 appliance          $150        $150      
          $150General *
             standards

          * Energy Resources Program Account.
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          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          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 
          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 








          SB 454 (Pavley)
          Page 1


          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.


          The proposed Committee amendments eliminate the requirement that 
          the California Energy Commission coordinate activities relating 
          to building standard enforcement.