BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1013


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          ASSEMBLY THIRD READING


          AB  
          1013 (Quirk)


          As Introduced  February 26, 2015


          Majority vote


           ----------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Utilities       |14-0  |Rendon, Patterson,  |                    |
          |                |      |Achadjian, Bonilla, |                    |
          |                |      |Burke, Dahle,       |                    |
          |                |      |Eggman,             |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |                |      |Cristina Garcia,    |                    |
          |                |      |Hadley, Jones,      |                    |
          |                |      |Quirk, Santiago,    |                    |
          |                |      |Ting, Williams      |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                    |
          |                |      |Bonta, Calderon,    |                    |
          |                |      |Chang, Daly,        |                    |
          |                |      |Eggman, Gallagher,  |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |                |      |Eduardo Garcia,     |                    |
          |                |      |Gordon, Holden,     |                    |
          |                |      |Jones, Quirk,       |                    |








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          |                |      |Rendon, Wagner,     |                    |
          |                |      |Weber, Wood         |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
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          SUMMARY:  Makes various changes in statutes related to the  
          California Energy Commission's (CEC) building standards.   
          Specifically, this bill:  


          1)Makes various changes to building standard statutes, including  
            provisions that:
             a)   Requires the CEC, before approving the public domain  
               computer program that estimates energy consumption, to  
               perform preliminary tests of the software using examples of  
               common residential and non-residential building, and to make  
               the results of the tests publicly available.
             b)   Requires the CEC to ensure its computer program that  
               estimates energy consumption is available at least six months  
               before the effective date of adopted or updated standards.
             c)   Requires the CEC to routinely adjust the software to  
               improve modeling accuracy for use within single-family  
               residential dwellings and multi-family residential dwellings  
               with up to four units.


             d)   Requires end-users of the public domain computer program  
               to provide consumers, along with the output of the energy  
               assessment tool, with a notice explaining how assumptions  
               used by the computer program may be different than actual  
               energy use.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, Increased annual costs of $972, 000 ($472,000 for CEC  
          to hire staff and $500,000 for increased annual contracts) (Energy  
          Resources Program Account) to obtain data, develop and maintain  








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          database systems, and identify the differences between actual  
          energy usage and tool estimates. 








          COMMENTS:  


          1)Author's Statement:  "Energy efficiency is the top priority in  
            California's policies to achieve energy savings and reduce  
            greenhouse gas emissions.  There are numerous programs ? that  
            offer consumers incentives or rebates to purchase energy  
            efficiency appliances and construct or install energy efficient  
            devices or technologies in residential and commercial buildings.  
             Before participating in these programs, customers may undergo  
            an energy assessment to examine energy saving opportunities in  
            their particular building.  However, the software tools approved  
            by the CEC that are used to estimate energy usage are not  
            sufficiently accurate and consistently overestimate energy  
            usage.  Generally, it has been observed that software-based  
            energy analysis of inefficient existing homes tends to over  
            predict pre-retrofit energy use and retrofit energy savings.  It  
            is important that these simulation results be calibrated to  
            actual energy usage to help customers understand how their  
            investment will likely affect their energy use if their occupant  
            behavior remains the same after energy efficiency improvements  
            are installed."
          2)Background:  The CEC is required to carry out studies, technical  
            assessments, research projects, and data collection directed in  
            order to adopt energy and water efficiency standards for  
            appliances and buildings to reduce wasteful, inefficient,  
            unnecessary, or uneconomic uses of energy.  Numerous programs  
            offer consumers incentives or rebates to purchase energy  
            efficient appliances and construct or install devices in  








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            residential and commercial buildings.  Before participating in  
            these programs, customers may undergo an energy assessment to  
            identify energy savings in their buildings.  The CEC is also  
            required to develop a public domain computer program to estimate  
            energy consumed by residential and nonresidential buildings.


          3)Energy Assessments and Ratings:  An energy assessment examines  
            opportunities in a particular building in order to find  
            potential energy saving upgrades.  Based on standard assumptions  
            of occupant behavior, ratings are used to compare the energy  
            efficiency of one building to others.  A variety of software  
            tools are available to perform assessments and ratings, and some  
            contractors have even created proprietary in-house tools.  These  
            methods involve inputting information about a building into a  
            building energy simulation program and running the program to  
            predict energy use.  Some studies have raised concerns about the  
            accuracy of energy analysis software.  These studies found that  
            software-based energy analysis of inefficient existing homes  
            tends to over predict pre-retrofit energy use and retrofit  
            energy savings.


            This bill would require the CEC to perform preliminary tests of  
            the software using examples of common residential and  
            non-residential buildings before approving the public domain  
            computer program, and make those results publically available.   
            This bill would also require the CEC to make the program  
            available six months before the effective date of adopted or  
            updated building standards.  Furthermore, this bill would  
            require the CEC to routinely adjust the software to improve  
            modeling accuracy, and notify consumers about how assumptions  
            used by the program may be different than actual energy use.   
            All this serves to ensure that the CECs public domains computer  
            program is accurate before it is released, and updated routinely  
            to ensure that consumers are provided the most accurate data  
            possible. 










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          Analysis Prepared by:                                               
                          Edmond Cheung / U. & C. / (916) 319-2083  FN:  
          0000616