BILL ANALYSIS Ó 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE ALEX PADILLA, CHAIR AB 341 - Dickinson Hearing Date: July 2, 2013 A As Amended: June 19, 2013 FISCAL B 3 4 1 DESCRIPTION Current law requires the California Energy Commission (CEC) to adopt and update every three years the energy efficiency building regulations that specify requirements related to lighting, insulation, windows, HVAC systems, and other new construction details designed to reduce energy consumption and lower energy bills for consumers. Current law establishes the California Building Standards Commission (CBSC) and the process for adopting, and updating every three years, the California Building Code (Title 24 of the California Code of Regulations), which includes energy efficiency standards established by CEC. Current law authorizes the CBSC to adopt green building standards where no other state agency has the authority or expertise to do so. These standards are maintained in a separate chapter of the California Building Code, known as the CalGreen Code. This bill requires the CBSC to integrate the existing CalGreen Code into the appropriate sections of the Title 24 California Building Code. This bill requires the CBSC and other code writing agencies to allow for input by other state agencies that have expertise in green building subject areas and specifies other aspects of the process. This bill requires a code writing agency that proposes green building standards, as part of the next triennial update of the California Building Code, to the extent feasible, to reference or reprint the green building standards in other relevant portions of that code. BACKGROUND The California Building Standards Law establishes the CBSC and the process for adopting state building codes. Under this process, relevant state agencies propose amendments to model building codes, which the BSC must then adopt, modify, or reject. For example, the Department of Housing and Community Development (HCD) is the relevant state agency for residential building codes. The Office of Statewide Health Planning and Development is responsible for hospitals and clinics, and the Division of the State Architect is the relevant agency for schools and emergency service buildings. Not all buildings fall under the jurisdiction of a relevant state agency. Most commercial, industrial, and manufacturing structures are considered "local buildings," over which local governments may determine applicable building standards. Every three years, the CBSC adopts a new version of the California Building Code, known as the triennial update. The next scheduled update is in 2014. Green building refers to the design and construction of buildings in a manner that is environmentally responsible and resource-efficient throughout a building's life-cycle: from siting to design, construction, operation, maintenance, renovation, and demolition. With respect to green building standards, current law gives CBSC the authority to adopt building standards for local buildings. Since 2008, the CBSC has maintained a separate chapter of the California Building Code, known as the CalGreen Code, that contains green building standards. The 2010 CalGreen Code allows cities and counties to adopt additional tiers of green building standards, known as Tier 1 and Tier 2 standards, some of which are mandatory and some of which are voluntary for builders to follow. In 2008, SB 1473 (Calderon), established a funding source for BSC to fund the development of building standards, with a priority for standards associated with green buildings. In 2010, CBSC, with the assistance of other state agencies with the authority to develop building standards, adopted CalGreen. CalGreen was adopted as a new part within Title 24 (Part 11) and established new requirements relating to planning and design; energy efficiency; water efficiency and conservation; material conservation and resource efficiency; and environmental quality. The standards are separated into "tiers" that include minimal mandatory standards and voluntary standards separated into Tier 1 and Tier 2 (Tier 2 indicating the highest level of green measures). Local authorities may opt to make the tiered standards mandatory within that jurisdiction. The California Building Standards Law further provides that when code writing agencies submit proposed building standards to the BSC, they must also submit an analysis to justify, among other things, that the public interest requires adoption of the standard. Current law also requires each city and county to collect a fee from any applicant for a building permit, assessed at the rate of $4 per $100,000 in valuation, and remit these fees to the state. The Legislature appropriates these funds to the CBSC, HCD, and the Office of the State Fire Marshal to pay for building code activities, with an emphasis on funding the development and implementation of buildings standards and educational efforts associated with green building standards. COMMENTS 1. Author's Purpose . According to the author, the adoption of CalGreen as a separate section within the CBC has caused some confusion and challenges for architects, designers, builders, and local building departments. Particular trades and inspectors may only review the part of the CBC relevant to their trade and may be unaware of the related green building standards that are located together in a separate chapter of the code. This bill requires BSC to integrate green building standards into the appropriate parts of the CBC, creating a "uniform building code that is green throughout." The author further seeks to bring more clarity to the green building standard update process and improve resources for implementation and training. 2. Building Code Transformation . Since the CBSC adopted its first green building standards in 2008, it has placed them into a separate "CalGreen" chapter of the CBC to highlight their innovativeness and environmental benefits. By incorporating these standards into the relevant portions of the CBC, this bill recognizes the reality that green building standards are now mainstream building standards. 3. Impact on CEC . According to CEC, this bill would likely not have a significant effect on CEC. This bill applies to state agencies that "propose" green building standards. While CEC is responsible for adopting all energy efficiency related provisions of the Title 24 building standards as part of its triennial update process, it is not among the agencies that proposes these green building standards to CBSC. This bill thus relates to the CalGreen proposal process that occurs before adoption by CEC and would not affect the CEC's adoption process. CEC already includes other state agencies in its rulemakings for adopting the energy efficiency provisions of CalGreen. 4. Ratepayer Impact . To the extent green building practices are incorporated into new construction as a result of the CalGreen standards become mainstream, rate payers should experience a reduction in utility costs. 5. Double Referral . This bill was approved by the Senate Committee on Transportation and Housing on June 18, 2013, by a vote of 10-0. PRIOR VOTES Senate Transportation and Housing Committee (10-0) Assembly Floor (76-1) Assembly Appropriations Committee (16-0) Assembly Natural Resources Committee (7-1) POSITIONS Sponsor: United States Green Building Council, California Support: California Building Industry Association Oppose: None on file Jacqueline Kinney AB 341 Analysis Hearing Date: July 2, 2013