BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
                              Senator Ben Hueso, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1013           Hearing Date:    6/16/2015
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          |Author:    |Quirk                                                |
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          |Version:   |2/26/2015    As Introduced                           |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Jay Dickenson                                        |
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          SUBJECT: Energy:  public domain computer program:  home energy  
          rating

            DIGEST:    This bill makes various changes to the California  
          Energy Commission's (CEC) implementation of its building energy  
          efficiency standards and its related home energy rating system  
          (HERS) program.

          ANALYSIS:
          
          Existing law:
          
          1)Requires CEC to issue cost-effective regulations regarding  
            building design construction for new building and for  
            appliances to reduce the wasteful, uneconomic, inefficient, or  
            unnecessary consumption of energy, including the energy  
            associated with the use of water.  (Public Resources Code  
            §25402 et seq)

          2)Requires CEC to develop a public domain computer program that  
            enables contractors, builders, architects, engineers, and  
            government officials to estimate the energy consumed by  
            residential and nonresidential buildings. (Public Resources  
            Code §25402.1(a))

          3)Requires CEC to adopt a statewide HERS program for residential  
            dwellings that allows consistent, accurate, and uniform  
            ratings of the energy efficiency of California homes and  
            prioritization of potential investments in energy efficiency  
            measures. (Public Resources Code §25942)








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          This bill:

          1)Requires CEC to approve and make publicly available, not less  
            than six months prior to the effective date of adopted or  
            updated standards, a version of the public domain computer  
            program that will function properly with those adopted or  
            updated standards. 

          2)Requires CEC, before approving the public domain computer  
            program for use with adopted or updated standards, to (a)  
            perform preliminary tests of the public domain computer  
            program using common examples of residential and  
            nonresidential buildings and building systems to ensure the  
            usability; and to (b) make the results of the preliminary  
            tests publicly available.

          3)Requires the CEC, as part of the home energy rating program,  
            for existing single-family residential dwellings and  
            multifamily residential dwellings with up to four units, to  
            (a) ensure energy assessment tools used by the commission are  
            routinely adjusted to improve modeling accuracy; and to (b)  
            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 the output may differ from  
            actual usage patterns.

          Background

          Public domain compliance software.  The Warren-Alquist Act  
          requires CEC to, among other things, establish a process for  
          certifying calculation methods to demonstrate compliance with  
          its building energy efficiency standards.  The process CEC  
          established is its Public Domain Compliance Software. Building  
          industry professionals use the software to demonstrate building  
          energy use for compliance with CEC's building energy efficiency  
          standards.  The software rates the energy efficiency of a newly  
          constructed building as an asset - a single-family home, an  
          office building, etc. - and compares it to other similar, newly  
          constructed assets.  Industry professionals can use the software  
          to evaluate the effects of different building features on a  
          building, operated under assumed conditions, against other  
          buildings with different features, operated under the same  
          assumed conditions. 

          Industry professionals report problems with CEC's past roll outs  








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          of the software updates that reflect new or updated building  
          energy efficiency standards.  The author and industry  
          representatives contend that such problems could likely be  
          avoided if they had access to a version of the software before  
          the new or updated standards took effect and if CEC made public  
          the testing of such software.  For this reason, the bill  
          requires CEC to make such software available at least six months  
          prior to the effective date of the new or updated standards and  
          requires CEC to test it using certain parameters, the results of  
          which CEC is to make public.  The CEC reports that both of these  
          requirements accord with CEC's current practice. 

          Home energy rating system and the use of software.  Public  
          Resources Code §25942 directs CEC to conduct a statewide home  
          energy rating program for residential dwellings. The program's  
          goal, according to CEC, is "reasonable estimates of potential  
          utility bill savings, and reliable recommendations on  
          cost-effective measures to improve energy efficiency." 

          In response, CEC established the HERS program. The program  
          operates as follows:

                 The CEC approves "HERS Providers" to train and certify  
               "HERS Raters." 

                 HERS Raters conduct HERS verification in (i) residential  
               and nonresidential newly constructed buildings, additions  
               and perform California Whole-House Home Energy Ratings - a  
               comprehensive evaluation of the energy efficiency of the  
               entire home.

          HERS Raters often times use CEC-approved software to help  
          homeowners estimate the energy usage they might realize after  
          making an energy efficiency upgrade.  Industry representatives  
          report that some of these software-based energy assessment tools  
          have provided inaccurate estimates of energy savings, despite  
          having been approved by CEC for such use. 

          The author and industry representatives contend that the  
          accuracy and usefulness of software used by HERS Raters would be  
          improved by routine adjustments.  They further contend that home  
          owners would be better served if CEC ensured home owners were  
          informed of the assumptions behind CEC-approved energy  
          assessment tools and how actual energy usage may vary from  
          assessment tool estimates.  There is no reason to contradict the  








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          proponents - the practices required by the bill likely would  
          improve the accuracy and usefulness of CEC-approved software in  
          estimating homeowner energy savings.  However, CEC reports that  
          the modeling adjustments will be complex and costly.  It is not  
          clear the improvements that would result from routine  
          adjustments to CEC-approved software would merit the cost of  
          such adjustments. 

          Who's using whom?  The bill requires CEC to ensure energy  
          assessment tools are routinely adjusted.  In doing so, the bill  
          references "energy assessment tools used by the commission."   
          This statement inaccurately reflects CEC's relationship with the  
          energy assessment tools.  This is because CEC does not "use"  
          such tools; rather, it approves them.  The author and committee  
          may wish to amend the bill as follows:

               (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  approved 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.

          Prior/Related Legislation
          
          AB 2581 (Bradford, 2014) would have made changes to CEC building  
          energy efficiency standards programs identical to this bill, as  
          well as changes to CEC's appliance energy efficiency standards.   
          The bill was vetoed by the Governor, who opined the bill  
          described CEC's existing practices and did not provide CEC with  
          new authority.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            ASSEMBLY VOTES:
          








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          Assembly Floor                          (79-0)
          Assembly Appropriations Committee       (17-0)
          Assembly Utilities and Commerce Committee(14-0)
           
          SUPPORT:  

          California Building Industry Association
          California Business Properties Association

          OPPOSITION:

          None received

          ARGUMENTS IN SUPPORT:    Proponents contend that, while CEC has  
          taken steps to ensure its next roll out of energy-code standards  
          will be better than past roll outs, this bill establishes  
          minimum levels of action that would be nonetheless well-received  
          by energy-code users.
          
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