BILL ANALYSIS Ó AB 834 Page 1 ASSEMBLY THIRD READING AB 834 (Williams) As Amended April 22, 2013 Majority vote NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Chesbro, Garcia, |Ayes:|Gatto, Bocanegra, | | |Muratsuchi, Skinner, | |Bradford, | | |Stone, Williams | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, | | | | |Rendon, Pan, Quirk, Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Grove, Bigelow, Patterson |Nays:|Harkey, Bigelow, | | | | |Donnelly, Linder, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Expands the California Energy Commission's (CEC) administrative civil penalty enforcement authority to include energy efficiency and water efficiency standards for buildings. EXISTING LAW : 1)Requires the CEC to take specified actions to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including adopting energy and water efficiency standards for appliances and for lighting, insulation climate control systems, and other building design and construction systems. 2)Establishes administrative civil penalties for violations of the CEC's appliance efficiency standards. Authorizes CEC to assess penalties of up to $2,500 for each violation. Requires CEC to consider specified factors when assessing a penalty. 3)Provides that if CEC determines that a violation has occurred or is threatening to occur, CEC may refer the matter to the Attorney General (AG) to petition a court to enjoin the violation. Authorizes the court to grant prohibitory or mandatory injunctive relief as warranted. AB 834 Page 2 4)Specifies that the energy and water efficiency requirements for buildings be enforced by the building department of every city, county, or city and county. Specifies that where there is no local building department, CEC shall enforce these standards. FISCAL EFFECT : According to the Assembly Appropriations Committee, this bill has unknown, likely minor, special fund enforcement costs to CEC, offset to a degree by increased revenue from violations. COMMENTS : Energy efficiency is a top priority in California's policies to achieve energy savings and reduce greenhouse gas (GHG) emissions. The CEC is tasked with developing the state's Title 24 energy efficiency building regulations, which are updated every three years and specify requirements relating to lighting, insulation, windows, heating, ventilation, and air conditioning (HVAC) systems, and other construction details designed to reduce energy consumption and lower energy bills for consumers. The CEC also develops the state's Title 20 energy efficiency appliance regulations that specify energy use standards for most major household and commercial appliances sold in California. Numerous programs administered by CEC, the California Public Utilities Commission, investor owned utilities, publicly owned utilities, and local government agencies offer consumers incentives or rebates to purchase energy efficient appliances and construct or install energy efficient devices or technologies in residential and commercial buildings. In 2011, CEC launched Energy Upgrade California, a web portal that provides consumers with a "one-stop-shop for home improvement projects that lower your energy use, conserve water and natural resources, and make your home healthier and more comfortable." The site provides information on available incentives and licensed contractors. Existing enforcement . The Contractors State License Board (CSLB) is the state's lead agency for investigating complaints against contractors. Investigations may result in a warning letter, disciplinary action, or referral to a local prosecutor for criminal charges. The disposition of a complaint varies by county and depends on whether a contractor is licensed or not. CLSB handles complaints referred by local building officials who AB 834 Page 3 enforce Title 24 standards. In July 2010, CLSB and CEC entered into a memorandum of understanding (MOU) to increase collaboration on education and enforcement of building and appliance regulations. The MOU identifies specific tasks for CEC, including outreach and education and training for CLSB staff. The AG's Office has also encouraged the entities involved in energy efficiency to work together to increase public outreach and education to encourage consumers to use licensed contractors and to acquire proper permits. This bill would authorize CEC to enforce building standards relating to energy efficiency that were adopted by CEC. This bill . According to the author's office: Our standards for building efficiency are recognized as leading the nation in energy savings and serves as one of the primary energy policy tools that resulted in California's per capita energy use staying essentially constant over the past 30 years, while the rest of the United States' consumption increased steadily. However, the effectiveness of the building energy efficiency standards is dependent on compliance with the standards. Violations of these standards not only threaten energy savings, they also result in a substantial financial loss to consumers who purchase energy efficiency goods and services and represent unfair competition that dramatically impacts the viability of legitimate businesses. AB 834 is needed to ensure that reported energy savings are real, consumers who purchase services for home improvement are protected, and businesses that provide energy efficiency services are operating on a level playing field. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 AB 834 Page 4 FN: 0000596