BILL NUMBER: AB 2581	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2014
	AMENDED IN SENATE  AUGUST 11, 2014
	AMENDED IN SENATE  JUNE 30, 2014
	AMENDED IN SENATE  JUNE 16, 2014
	AMENDED IN ASSEMBLY  MAY 28, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Assembly Member Bradford

                        FEBRUARY 21, 2014

   An act to amend Sections 25402, 25402.1, and 25942 of the Public
Resources Code,   and to add Section 454.58 to the Public
Utilities Code,  relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2581, as amended, Bradford. Energy: appliance standards: public
domain computer program: home energy  rating: energy
efficiency program for appliances.   rating. 
   (1) Existing law requires the State Energy Resources Conservation
and Development Commission to prescribe, by regulation, standards for
minimum levels of operating efficiency, and authorizes the
commission to prescribe other cost-effective measures, to promote the
use of energy-efficient and water-efficient appliances whose use
requires a significant amount of energy or water on a statewide
basis.
   This bill would instead authorize the commission to prescribe or
adopt other cost-effective measures. The bill would authorize the
commission to consider or recognize voluntary agreements in lieu of
regulation described above and to take voluntary agreements into
account in its planning. The bill would require the commission to
consider adopting a process for the repeal, or suspension of
enforcement, of a standard for minimum levels of operating efficiency
for an appliance that the commission finds to be duplicative or
inconsistent with federal or state law. The bill would require any
labeling requirement prescribed by the commission to allow a
manufacturer to use electronic labeling as appropriate. The bill
would require the commission to consider the most current data
provided to the commission regarding a proposed standard for an
appliance before the publication of the notice of the proposed action
to consider adoption or amendment of a standard for an appliance.
The bill would require the commission to explain in the final
statement of reasons how it considered those data.
   (2) Existing law requires the commission to prescribe, by
regulation, lighting, insulation climate control system, and other
building design and construction standards that increase the
efficiency in the use of energy and water for new residential and new
nonresidential buildings. Existing law also requires the commission
to prescribe, by regulation, energy and water conservation design
standards for new residential and new nonresidential buildings. In
order to implement these requirements, existing law requires the
commission to develop a public domain computer program that enables
contractors, builders, architects, engineers, and government
officials to estimate energy consumed by residential and
nonresidential buildings and requires the commission to establish a
formal process for certification of compliance options for new
products, materials, and calculation methods, as prescribed.
   This bill would require the commission to approve and make
publicly available, not less than 6 months prior to the effective
date of adopted or updated efficiency standards, the public domain
computer program. The bill would require the commission, before
approving the public domain computer program, to perform preliminary
tests of the public domain computer program using common examples of
residential and nonresidential buildings and building systems to
ensure the usability of the program by users of the program. The bill
would require the commission to make the results of those
preliminary tests publicly available.
   (3) Existing law requires the commission to establish criteria for
adopting a statewide home energy rating program for residential
dwellings.
   For existing single-family residential dwellings and multifamily
residential dwellings with up to 4 units, the bill would require the
commission, in administering the statewide home energy rating
program, to ensure that energy assessment tools used by the
commission are routinely adjusted to improve modeling accuracy and to
ensure that consumers receive a notice with the output of the energy
assessment tools explaining the assumptions used in the energy
assessment tools and how they may differ from actual usage patterns.

   (4) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. The Public Utilities Act requires the
commission to review and accept, modify, or reject a procurement plan
for each electrical corporation in accordance with specified
elements, incentive mechanisms, and objectives. The act requires that
an electrical corporation's proposed procurement plan include
certain elements, including a showing that the electrical corporation
will first meet its unmet needs through all available energy
efficiency and demand reduction resources that are cost effective,
reliable, and feasible.  
   This bill would require the Public Utilities Commission, no later
than January 1, 2016, to include in its energy efficiency portfolio
program, a program to provide incentives to an electrical corporation
that adopts an energy efficiency program to reduce electrical demand
from indoor appliances. In order to receive incentives from the
program, the bill would require the commission to require an energy
efficiency program for indoor appliances adopted by an electrical
corporation to be established and maintained at a net to gross ratio
of 0.8 for 36 consecutive months. After 36 months, the bill would
authorize the commission to evaluate the energy efficiency program
and adjust the net to gross ratio on a prospective basis. 
   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 25402 of the Public Resources Code is amended
to read:
   25402.  The commission shall, after one or more public hearings,
do all of the following, in order to reduce the wasteful, uneconomic,
inefficient, or unnecessary consumption of energy, including the
energy associated with the use of water:
   (a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction standards
that increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings. The commission shall
periodically update the standards and adopt any revision that, in its
judgment, it deems necessary. Six months after the commission
certifies an energy conservation manual pursuant to subdivision (c)
of Section 25402.1, a city, county, city and county, or state agency
shall not issue a permit for a building unless the building satisfies
the standards prescribed by the commission pursuant to this
subdivision or subdivision (b) that are in effect on the date an
application for a building permit is filed. Water efficiency
standards adopted pursuant to this subdivision shall be demonstrated
by the commission to be necessary to save energy.
   (2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community Development and
the commission shall issue a joint finding whether the standard (A)
is equivalent or superior in performance, safety, and for the
protection of life, health, and general welfare to standards in Title
24 of the California Code of Regulations and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from water efficiency standards. This
subdivision does not in any way reduce the authority of the
Department of Housing and Community Development to adopt standards
and regulations pursuant to Part 1.5 (commencing with Section 17910)
of Division 13 of the Health and Safety Code.
   (3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The commission shall consult
with the members of the coordinating council as established in
Section 18926 of the Health and Safety Code in the development of
these standards.
   (b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall be
promulgated in terms of energy consumption per gross square foot of
floorspace, but may also include devices, systems, and techniques
required to conserve energy and water. The commission shall
periodically review the standards and adopt any revision that, in its
judgment, it deems necessary. A building that satisfies the
standards prescribed pursuant to this subdivision need not comply
with the standards prescribed pursuant to subdivision (a). Water
conservation design standards adopted pursuant to this subdivision
shall be demonstrated by the commission to be necessary to save
energy. Prior to adopting a water conservation design standard for
residential buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding whether
the standard (A) is equivalent or superior in performance, safety,
and for the protection of life, health, and general welfare to
standards in the California Building Standards Code and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from the water conservation design
standards. Nothing in this subdivision in any way reduces the
authority of the Department of Housing and Community Development to
adopt standards and regulations pursuant to Part 1.5 (commencing with
Section 17910) of Division 13 of the Health and Safety Code.
   (2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to subdivisions (a) and
(b), the commission shall, prior to publication of the notice of
proposed action required by Section 18935 of the Health and Safety
Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the commission shall receive
and take into consideration input from all parties concerning the
parties' design recommendations, cost considerations, and other
factors that would affect consumers and California businesses of the
proposed standard. The commission shall take into consideration prior
to the start of the notice of proposed action any input provided
during these public meetings.
   (3) The standards adopted or revised pursuant to subdivisions (a)
and (b) shall be cost-effective when taken in their entirety and when
amortized over the economic life of the structure compared with
historic practice. When determining cost-effectiveness, the
commission shall consider the value of the water or energy saved,
impact on product efficacy for the consumer, and the life-cycle cost
of complying with the standard. The commission shall consider other
relevant factors, as required by Sections 18930 and 18935 of the
Health and Safety Code, including, but not limited to, the impact on
housing costs, the total statewide costs and benefits of the standard
over its lifetime, economic impact on California businesses, and
alternative approaches and their associated costs.
   (c) (1) (A) Prescribe, by regulation, standards for minimum levels
of operating efficiency, based on a reasonable use pattern, and may
prescribe or adopt other cost-effective measures, including incentive
programs, fleet averaging, energy and water consumption labeling not
preempted by federal labeling law, and consumer education programs,
to promote the use of energy and water efficient appliances whose
use, as determined by the commission, requires a significant amount
of energy or water on a statewide basis. The minimum levels of
operating efficiency shall be based on feasible and attainable
efficiencies or feasible improved efficiencies that will reduce the
energy or water consumption growth rates. The standards shall become
effective no sooner than one year after the date of adoption or
revision. A new appliance manufactured on or after the effective date
of the standards shall not be sold or offered for sale in the state,
unless it is certified by the manufacturer thereof to be in
compliance with the standards. The standards shall be drawn so that
they do not result in any added total costs for consumers over the
designed life of the appliances concerned.
   (B) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to this subdivision, the
commission shall, prior to publication of the notice of proposed
action required by Section 18935 of the Health and Safety Code,
involve parties who would be subject to the proposed regulations in
public meetings regarding the proposed regulations. All potential
affected parties shall be provided advance notice of these meetings
and given an opportunity to provide written or oral comments. During
these public meetings, the commission shall receive and take into
consideration input from all parties concerning the parties' design
recommendations, cost considerations, and other factors that would
affect consumers and California businesses of the proposed standard.
The commission shall take into consideration prior to the start of
the notice of proposed action any input provided during these public
meetings.
   (C) The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the consumer,
and the life-cycle cost to the consumer of complying with the
standard. The commission shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses, and alternative approaches
and their associated costs.
   (D) Any labeling requirement prescribed by the commission pursuant
to subparagraph (A) shall allow a manufacturer to use electronic
labeling as appropriate. The use of electronic labeling does not
alter requirements to submit data to the commission's appliance
efficiency database.
   (2) A new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
shall not be sold, or offered for sale, in the state, unless the date
of the manufacture is permanently displayed in an accessible place
on that appliance.
   (3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1), an
increase or decrease in the minimum level of operating efficiency
required by the standard for that appliance shall not become
effective, unless the commission adopts other cost-effective measures
for that appliance.
   (4) Neither the commission nor any other state agency shall take
any action to decrease any standard adopted under this subdivision on
or before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the commission finds by a four-fifths vote that a decrease is
of benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the commission shall
not take any action to increase a standard prescribing minimum levels
of operating efficiency for any appliance or adopt a new standard
under paragraph (1). Before January 1, 1986, any appliance
manufacturer doing business in this state shall provide directly, or
through an appropriate trade or industry association, information, as
specified by the commission after consultation with manufacturers
doing business in the state and appropriate trade or industry
associations on sales of appliances so that the commission may study
the effects of regulations on those sales. These informational
requirements shall remain in effect until the information is
received. The trade or industry association may submit sales
information in an aggregated form in a manner that allows the
commission to carry out the purposes of the study. The commission
shall treat any sales information of an individual manufacturer as
confidential and that information shall not be a public record. The
commission shall not request any information that cannot be
reasonably produced in the exercise of due diligence by the
manufacturer. At least one year prior to the adoption or amendment of
a standard for an appliance, the commission shall notify the
Legislature of its intent, and the justification to adopt or amend a
standard for the appliance. The commission shall consider the most
current data provided to the commission regarding any proposed
standard under this subdivision before the publication of the notice
of proposed action pursuant to paragraph (5) of subdivision (a) of
Section 11346.4 of the Government Code to consider adoption or
amendment of a standard for an appliance pursuant to this
subdivision. The commission shall explain in the final statement of
reasons prepared pursuant to Section 11346.9 of the Government Code
how it considered this data provided to the commission.
Notwithstanding paragraph (3) and this paragraph, the commission may
do any of the following:
   (A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
   (B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
   (C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
   (D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
   (E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
   (5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or before
June 30, 1985.
   (6) (A) The commission may consider or recognize voluntary
agreements in lieu of regulation pursuant to paragraph (1).
   (B) The commission may take voluntary agreements into account in
its planning.
   (7) The commission shall consider, as part of the rulemaking
proceeding instituted by Commission Order No. 12-0112-06, adopting a
process for the repeal, or suspension of enforcement, of a standard
prescribed by paragraph (1) that the commission finds is duplicative
or inconsistent with federal or state law.
   (d) (1) Recommend minimum standards of efficiency for the
operation of a new facility at a particular site that are technically
and economically feasible. A site and related facility shall not be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
   (2) Whenever this section and Chapter 11.5 (commencing with
Section 19878) of Part 3 of Division 13 of the Health and Safety Code
are in conflict, the commission shall be governed by that chapter of
the Health and Safety Code to the extent of the conflict.
   (e) The commission shall do all of the following:
   (1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
   (2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
   (3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).
  SEC. 2.  Section 25402.1 of the Public Resources Code is amended to
read:
   25402.1.  In order to implement the requirements of subdivisions
(a) and (b) of Section 25402, all of the following shall apply:
   (a) The commission shall develop a public domain computer program
that will enable contractors, builders, architects, engineers, and
government officials to estimate the energy consumed by residential
and nonresidential buildings. The commission may charge a fee for the
use of the program, which shall be based upon the actual cost of the
program, including any computer costs.
   (b) The commission shall establish a formal process for
certification of compliance options for new products, materials, and
calculation methods that provides for adequate technical and public
review to ensure accurate, equitable, and timely evaluation of
certification applications. Proponents filing applications for new
products, materials, and calculation methods shall provide all
information needed to evaluate the application that is required by
the commission. The commission shall publish annually the results of
its certification decisions and instructions to users and local
building officials concerning requirements for showing compliance
with the building standards for new products, materials, or
calculation methods. The commission may charge and collect a
reasonable fee from applicants to cover the costs under this
subdivision. Any funds received by the commission for purposes of
this subdivision shall be deposited in the Energy Resources Programs
Account and, notwithstanding Section 13340 of the Government Code,
are continuously appropriated to the commission for the purposes of
this subdivision. Any unencumbered portion of funds collected as a
fee for an application remaining in the Energy Resources Programs
Account after completion of the certification process for that
application shall be returned to the applicant within a reasonable
period of time.
   (c) The commission shall include a prescriptive method of
complying with the standards, including design aids such as a manual,
sample calculations, and model structural designs.
   (d) The commission shall conduct a pilot project of field testing
of actual residential buildings to calibrate and identify potential
needed changes in the modeling assumptions to increase the accuracy
of the public domain computer program specified in subdivision (a)
and to evaluate the impacts of the standards, including, but not
limited to, the energy savings, cost-effectiveness, and the effects
on indoor air quality. The pilot project shall be conducted pursuant
to a contract entered into by the commission. The commission shall
consult with the participants designated pursuant to Section 9202 of
the Public Utilities Code, as that section read on December 31, 2003,
to seek funding and support for field monitoring in each public
utility service territory, with the University of California to take
advantage of its extensive building monitoring expertise, and with
the California Building Industry Association to coordinate the
involvement of builders and developers throughout the state. The
pilot project shall include periodic public workshops to develop
plans and review progress. The commission shall prepare and submit a
report to the Legislature on progress and initial findings not later
than December 31, 1988, and a final report on the results of the
pilot project on residential buildings not later than June 30, 1990.
The report shall include recommendations regarding the need and
feasibility of conducting further monitoring of actual residential
and nonresidential buildings. The report shall also identify any
revisions to the public domain computer program and energy
conservation standards if the pilot project determines that revisions
are appropriate.
   (e) The commission shall certify, not later than 180 days after
approval of the standards by the State Building Standards Commission,
an energy conservation manual for use by designers, builders, and
contractors of residential and nonresidential buildings. The manual
shall be furnished upon request at a price sufficient to cover the
costs of production and shall be distributed at no cost to all
affected local agencies. The manual shall contain, but not be limited
to, the following:
   (1) The standards for energy conservation established by the
commission.
   (2) Forms, charts, tables, and other data to assist designers and
builders in meeting the standards.
   (3) Design suggestions for meeting or exceeding the standards.
   (4) Any other information which the commission finds will assist
persons in conforming to the standards.
   (5) Instructions for use of the computer program for calculating
energy consumption in residential and nonresidential buildings.
   (6) The prescriptive method for use as an alternative to the
computer program.
   (f) The commission shall approve and make publicly available, not
less than six months prior to the effective date of adopted or
updated standards, the public domain computer program developed
pursuant to subdivision (a). Before approving the public domain
computer program, the commission shall do both of the following:
   (1) Perform preliminary tests of the public domain computer
program using common examples of residential and nonresidential
buildings and building systems to ensure the usability of the public
domain computer program by users of the program, including, but not
limited to, architects, builders, contractors, and local code
enforcement personnel.
   (2) Make the results of the preliminary tests publicly available.
   (g) The commission shall establish a continuing program of
technical assistance to local building departments in the enforcement
of subdivisions (a) and (b) of Section 25402 and this section. The
program shall include the training of local officials in building
technology and enforcement procedures related to energy conservation,
and the development of complementary training programs conducted by
local governments, educational institutions, and other public or
private entities. The technical assistance program shall include the
preparation and publication of forms and procedures for local
building departments in performing the review of building plans and
specifications. The commission shall provide, on a contract basis, a
review of building plans and specifications submitted by a local
building department, and shall adopt a schedule of fees sufficient to
repay the cost of those services.
   (h) Subdivisions (a) and (b) of Section 25402 and this section,
and the rules and regulations of the commission adopted pursuant to
those provisions, shall be enforced by the building department of
every city, county, or city and county.
   (1) A building permit for a residential or nonresidential building
shall not be issued by a local building department, unless a review
by the building department of the plans for the proposed residential
or nonresidential building contains detailed energy system
specifications and confirms that the building satisfies the minimum
standards established pursuant to subdivision (a) or (b) of Section
25402 and this section applicable to the building.
   (2) Where there is no local building department, the commission
shall enforce subdivisions (a) and (b) of Section 25402 and this
section.
   (3) If a local building department fails to enforce subdivisions
(a) and (b) of Section 25402 and this section or any other provision
of this chapter or standard adopted pursuant thereto, the commission
may provide enforcement after furnishing 10 days' written notice to
the local building department.
   (4) A city, county, or city and county may, by ordinance or
resolution, prescribe a schedule of fees sufficient to pay the costs
incurred in the enforcement of subdivisions (a) and (b) of Section
25402 and this section. The commission may establish a schedule of
fees sufficient to pay the costs incurred by that enforcement.
   (5) The construction of a state building shall not commence until
the Department of General Services or the state agency that otherwise
has jurisdiction over the property reviews the plans for the
proposed building and certifies that the plans satisfy the minimum
standards established pursuant to Chapter 2.8 (commencing with
Section 15814.30) of Part 10b of Division 3 of Title 2 of the
Government Code, subdivision (a) or (b) of Section 25402, and this
section that are applicable to the building.
   (i) Subdivisions (a) and (b) of Section 25402 and this section
shall apply only to new residential and nonresidential buildings on
which actual site preparation and construction have not commenced
prior to the effective date of rules and regulations adopted pursuant
to those sections that are applicable to those buildings. Those
sections shall not prohibit either of the following:
   (1) The enforcement of state or local energy conservation or
energy insulation standards, adopted prior to the effective date of
rules and regulations adopted pursuant to subdivisions (a) and (b) of
Section 25402 and this section with regard to residential and
nonresidential buildings on which actual site preparation and
construction have commenced prior to that date.
   (2) The enforcement of city or county energy conservation or
energy insulation standards, whenever adopted, with regard to
residential and nonresidential buildings on which actual site
preparation and construction have not commenced prior to the
effective date of rules and regulations adopted pursuant to
subdivisions (a) and (b) of Section 25402 and this section, if the
city or county files the basis of its determination that the
standards are cost effective with the commission and the commission
finds that the standards will require the diminution of energy
consumption levels permitted by the rules and regulations adopted
pursuant to those sections. If, after two or more years after the
filing with the commission of the determination that those standards
are cost effective, there has been a substantial change in the
factual circumstances affecting the determination, upon application
by any interested party, the city or county shall update and file a
new basis of its determination that the standards are cost effective.
The determination that the standards are cost effective shall be
adopted by the governing body of the city or county at a public
meeting. If, at the meeting on the matter, the governing body
determines that the standards are no longer cost effective, the
standards shall, as of that date, be unenforceable and no building
permit or other entitlement shall be denied based on the
noncompliance with the standards.
   (j) The commission may exempt from the requirements of this
section and of any regulations adopted pursuant to this section any
proposed building for which compliance would be impossible without
substantial delays and increases in cost of construction, if the
commission finds that substantial funds have been expended in good
faith on planning, designing, architecture, or engineering prior to
the date of adoption                                             of
the regulations.
   (k) If a dispute arises between an applicant for a building
permit, or the state pursuant to paragraph (5) of subdivision (h),
and the building department regarding interpretation of Section 25402
or the regulations adopted pursuant thereto, either party may submit
the dispute to the commission for resolution. The commission's
determination of the matter shall be binding on the parties.
   (l) Nothing in Section 25130, 25131, or 25402, or in this section
prevents enforcement of any regulation adopted pursuant to this
chapter, or Chapter 11.5 (commencing with Section 19878) of Part 3 of
Division 13 of the Health and Safety Code as they existed prior to
September 16, 1977.
  SEC. 3.  Section 25942 of the Public Resources Code is amended to
read:
   25942.  (a) On or before July 1, 1995, the commission shall
establish criteria for adopting a statewide home energy rating
program for residential dwellings. The program criteria shall
include, but are not limited to, all of the following elements:
   (1) Consistent, accurate, and uniform ratings based on a single
statewide rating scale.
   (2) Reasonable estimates of potential utility bill savings, and
reliable recommendations on cost-effective measures to improve energy
efficiency.
   (3) Training and certification procedures for home raters and
quality assurance procedures to promote accurate ratings and to
protect consumers.
   (4) In coordination with home energy rating service organization
databases, procedures to establish a centralized, publicly
accessible, database that includes a uniform reporting system for
information on residential dwellings, excluding proprietary
information, needed to facilitate the program. There shall be no
public access to information in the database concerning specific
dwellings without the owner's or occupant's permission.
   (5) Labeling procedures that will meet the needs of home buyers,
homeowners, renters, the real estate industry, and mortgage lenders
with an interest in home energy ratings.
   (b) The commission shall adopt the program pursuant to subdivision
(a) in consultation with representatives of the Bureau of Real
Estate, the Department of Housing and Community Development, the
Public Utilities Commission, investor-owned and municipal utilities,
cities and counties, real estate licensees, home builders, mortgage
lenders, home appraisers and inspectors, home energy rating
organizations, contractors who provide home energy services, consumer
groups, and environmental groups.
   (c) On and after January 1, 1996, a home energy rating services
shall not be performed in this state unless the services have been
certified, if such a certification program is available, by the
commission to be in compliance with the program criteria specified in
subdivision (a) and, in addition, are in conformity with any other
applicable element of the program.
   (d) On or before July 1, 1996, the commission shall consult with
the agencies and organizations described in subdivision (b), to
facilitate a public information program to inform homeowners, rental
property owners, renters, sellers, and others of the existence of the
statewide home energy rating program adopted by the commission.
   (e) The commission shall, as part of the biennial report prepared
pursuant to Section 25302, report on the progress made to implement a
statewide home energy rating program. The report shall include an
evaluation of the energy savings attributable to the program, and a
recommendation concerning which means and methods will be most
efficient and cost-effective to induce home energy ratings for
residential dwellings.
   (f) For existing single-family residential dwellings and
multifamily residential dwellings with up to four units, the
commission shall do both of the following in administering the
statewide home energy rating program:
   (1) Ensure energy assessment tools used by the commission are
routinely adjusted to improve modeling accuracy.
   (2) Ensure that consumers receive a notice with the output of the
energy assessment tools explaining the assumptions used in the energy
assessment tools and how they may differ from actual usage patterns.

  SEC. 4.    Section 454.58 is added to the Public
Utilities Code, to read:
   454.58.  (a) No later than January 1, 2016, the commission shall,
in a new or existing proceeding, include a program in its energy
efficiency portfolio program to provide incentives to an electrical
corporation that adopts an energy efficiency program to reduce
electrical demand from indoor appliances.
   (b) The program established by the commission pursuant to
subdivision (a) shall address challenges and minimize programmatic
barriers that may limit or inhibit the achievement of energy
efficiency goals determined by the commission. The energy efficiency
goals shall include, but not be limited to, all of the following:
   (1) Evaluation and attribution of energy savings.
   (2) Long-lasting, sustainable increases in the adoption of energy
efficiency technologies through structural changes in the market and
in behaviors of market actors for indoor appliances that receive
electricity through power outlets, such as 110 voltage alternating
current (VAC), and other emerging delivery mechanisms, including
universal serial bus (USB), Power over Ethernet (PoE), and 24-volt
direct current (VDC).
   (c) In order to receive incentives from the program, the
commission shall require an energy efficiency program adopted by an
electrical corporation pursuant to subdivision (a) to be established
and maintained at a net to gross ratio of 0.8 for a minimum of 36
consecutive months. After 36 months, the commission may evaluate the
energy efficiency program and adjust the net to gross ratio on a
prospective basis.
   (d) The commission shall update cost-effectiveness tools to
account for long-term benefits and costs that accrue as a result of
the establishment of programs pursuant to subdivision (a).