BILL NUMBER: AB 1918 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2014
INTRODUCED BY Assembly Member Williams
FEBRUARY 19, 2014
An act to add Section 7110.05 to the Business and
Professions 25402.12 to the Public Resources
Code, and to add Section 381.3 to the Public Utilities Code, relating
to air conditioner systems. central heating
and air cooling equipment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1918, as amended, Williams. Air conditioner systems.
Central heating and air cooling equipment.
Existing law, the Contractors' State License Law, provides for the
licensing and regulation of contractors by the Contractors' State
License Board in the Department of Consumer Affairs. Under existing
law, a willful or deliberate disregard by a licensed contractor of
various state building, labor, and safety laws constitutes a cause
for disciplinary action.
This bill would require the board to develop a system to track air
conditioner appliance sales and installations and to ensure that air
conditioner appliance systems are installed according to applicable
building codes and with the necessary permits.
Existing law requires the State Energy Resources Conservation and
Development Commission to prescribe, by regulation, building design
and construction standards and energy and water conservation design
standards for new residential and nonresidential buildings. Existing
law requires the State Energy Resources Conservation and Development
Commission to prescribe, by regulation, standards for minimum levels
of operating efficiency to promote the use of energy and water
efficient appliances whose use requires a significant amount of
energy or water on a statewide basis. Existing law requires that the
minimum levels of operating efficiency be based on feasible and
attainable efficiencies or feasible improved efficiencies that will
reduce the energy or water consumption growth rates. Existing law
prohibits a new appliance manufactured on or after the effective date
of the standards to be sold or offered for sale in the state unless
it is certified by the manufacturer to be in compliance with the
standards.
This bill would require the State Energy Resources Conservation
and Development Commission to develop a system to track central
heating and air cooling equipment sales and installations in the
state.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, as defined.
This bill would require the commission to open a new
proceeding or expand the scope of commission, in
an existing proceeding , to establish, by January 1,
2016, an incentive program for contractors and local governments to
improve the verification of building code compliance and acceptance
of air conditioner appliance systems central
heating and air cooling equipment following installation.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7110.05 is added to the
Business and Professions Code, to read:
7110.05. The board shall, pursuant to Section 7110, develop a
system to track air conditioner appliance sales and installations in
the state and to ensure that air conditioner appliance systems are
installed according to applicable building codes and with the
necessary permits.
SECTION 1. The Legislature finds and declares all
of the following:
(a) California's building energy efficiency standards are
recognized as leading the nation in energy savings. They are an
important component of the state's programs to manage its energy
consumption, conserve natural resources, and improve the quality of
life for all its citizens.
(b) Heating and cooling buildings is one of the largest
electricity end uses in the state and is also the single largest
contributor to peak electricity demand, comprising up to 30 percent
of total demand in the hot summer months.
(c) In the 2008 Strategic Plan to Reduce the Energy Impact of Air
Conditioners, the State Energy Resources Conservation and Development
Commission identified that a heating, ventilation, and air
conditioning system (HVAC) can increase energy use by 20 or 30
percent if it is poorly installed regardless of its efficiency
rating.
(d) Permits are required for the replacement of heating and
cooling equipment and a code official must verify installation in
compliance with the building energy efficiency standards. The
effectiveness of the building energy efficiency standards is
dependent upon the conscientious efforts of licensed contractors in
California to follow these permitting requirements to build buildings
and install components and equipment in compliance with the
standards which deliver cost-effective energy savings to consumers.
(e) However, the State Energy Resources Conservation and
Development Commission estimates that less than 10 percent of
replacement HVAC work is performed with the proper building permits.
This underground activity denies state and local governments license
and building permit revenue and diminishes the ability of state and
local agencies to provide enforcement services intended to protect
consumers. These practices particularly damage and diminish the
potential for conscientious compliance with the building energy
efficiency standards, as these illegal installations undermine those
who attempt to comply with the law by following the permitting
requirements.
(f) These violations result in a substantial financial loss to
consumers who purchase energy efficiency goods and services, and
represent unfair competition that dramatically impacts the economic
viability of legitimate businesses. It is critical for California to
maintain a business climate favorable to legitimate competition, so
that conscientious contractors, manufacturers, distributors,
retailers, home energy rating system raters, and other businesses are
able to sustain their businesses against unfair competition.
(g) California building codes are updated regularly, necessitating
more training and education for building officials performing
permitting, plan checking, and inspections. Providing this education
in tandem with incentives for beyond-code performance will motivate
both local building departments and contractors to prioritize energy
efficiency performance in their day-to-day operations.
(h) In an effort to increase permitted activity, some local
jurisdictions have adopted practices that make it easier to obtain
permits or have implemented pilot programs to educate and train local
building staff. It is in California's best interest to facilitate
the adoption of demonstrated best practices for local building
departments across the state to undertake to maximize compliance with
building codes.
SEC. 2. Section 25402.12 is added to the
Public Resources Code , to read:
25402.12. The commission, in consultation with the Contractors'
State License Board, local building officials, and other
stakeholders, shall develop a system to track central heating and air
cooling equipment sales and installations in the state. Any system
developed by the commission shall be adopted by regulation following
one or more public hearings.
SEC. 2. SEC. 3. Section 381.3 is
added to the Public Utilities Code, to read:
381.3. The commission shall open a new proceeding or
expand the scope of an existing proceeding to establish, by
By January 1, 2016, the commission, in an existing
proceeding, shall establish an incentive program for
contractors and local governments to improve the verification of
building code compliance and acceptance of air conditioner
appliance systems central heating and air cooling
equipment following installation. The incentives may include
, but are not limited to, all of the following:
(a) Funding for training and certification programs for
air conditioning system installers and central heating
and air cooling equipment installers, local government
building officials. officials, and school
building inspectors licensed through the Division of the
State Architect.
(b) Technical and financial support to establish performance
protocols necessary to verify performance compliance of air
conditioner appliance systems. central heating and air
cooling equipment.
(c) Grants Financial or other support
to assist local agencies in offsetting costs associated with
employing innovative approaches to reduce barriers in
the permitting process for heating and cooling equipment, for
example, expediting the permitting of air conditioning
appliance systems that are designed to achieve greater compliance
with state and local building permit requirements.
process and measures to achieve greater compliance with state and
local building permit requirements.
(d) Funding for the development of a system to track air
conditioner appliance sales and installations pursuant to Section
7110.05 of the Business and Professions Code.