BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1013 (Quirk) - Energy: public domain computer program: home  
          energy rating.
          
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          |Version: June 19, 2015          |Policy Vote: E., U., & C. 10 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: July 6, 2015      |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 1013 would require the California Energy Commission  
          (CEC) to approve and make publicly available a public domain  
          computer program that reflects adopted or updated building  
          standards and has been tested and updated to improve accuracy  
          for use on single-family and multifamiliy residential dwellings.


          Fiscal  
        Impact:  Ongoing costs of approximately $1 million for staff and  
          contracts from the Energy Resources Programs Account (General)  
          to continuously improve modeling accuracy of the energy  
          assessment tools for residential dwellings.


          Background:  Section 25402.1 of the Public Resources Code requires the CEC  
          to develop a public domain computer program that will enable  
          contractors, builders, architects, engineering, and government  







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          officials to estimate the energy consumed by residential and  
          nonresidential buildings. This program, known as the Public  
          Domain Compliance Software, is used to demonstrate compliance  
          with building energy efficiency standards. 

          Section 25942 of the Public Resources Code requires the CEC to  
          adopt criteria for adopting a statewide home energy rating  
          program for residential dwellings. Home energy rating services  
          must in compliance with the program criteria. In response to  
          this requirement, the CEC developed the Home Energy Rating  
          System (HERS) program. HERS providers use software (often Energy  
          Pro, which is CEC approved) to estimate the energy savings that  
          will occur in any given building as a result of efficiency  
          upgrades. 


          Proposed Law:  
            This bill would:
           Require the 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. 


           Require the CEC, before approving the public domain computer  
            program for use with adopted or updated standards, to (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; and to (2) make the results of the preliminary  
            tests publicly available.


           Require 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  
            (1) ensure energy assessment tools used by the commission are  
            routinely adjusted to improve modeling accuracy; and to (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 the output may differ from  
            actual usage patterns.









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          Related  
          Legislation:  AB 2581 (Bradford, 2014) would have made changes  
          to CEC building energy efficiency standards programs virtually  
          identical to this bill, as well as changes to CEC's appliance  
          energy efficiency standards.  The bill was vetoed by the  
          Governor. 


          Staff  
          Comments:  In regards to the Public Domain Computer Program, the  
          changes proposed by the bill are consistent with CEC's current  
          practice and therefore will not result in additional costs.
          In regards to the HERS program, this bill would require that  
          energy assessment tools used by the CEC are routinely adjusted  
          to improve the tools accuracy in estimating anticipated energy  
          savings. To make such adjustments, the CEC will need to  
          regularly obtain energy usage data from single-family and  
          multi-family buildings that have received an assessment using  
          the CEC tools in order to compare estimated energy usage with  
          actual usage. Any differences would result in modifying the  
          assessment tools. The CEC anticipates needing approximately  
          $500,000 in contract costs for data collection and analysis  
          assistance plus approximately $500,000 in additional staff to  
          continuously improve modeling accuracy.


          As noted by the Senate Committee on Energy, Utilities, and  
          Communication, "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 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."








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