BILL ANALYSIS Ó AB 2379 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2379 (Quirk) - As Amended April 13, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the California Energy Commission (CEC) to provide a progress report on the implementation of a statewide home energy rating program as part of its integrated energy policy report (IEPR). Specifically, this bill requires the report to include: 1)An evaluation of the energy savings attributable to the AB 2379 Page 2 program. 2)A comparison of actual energy consumption and the models or projections used to qualify the rating program. 3)A recommendation concerning which means and methods will be most efficient and cost-effect to induce home energy ratings for residential dwellings. FISCAL EFFECT: Increased annual staff costs of $472,000 and increased contracting costs of 500,000 for CEC to perform the comparison of actual and projected energy consumption (GF or special fund). The Energy Resources Program Account typically funds the IEPR, however, the fund is oversubscribed and in deficit. COMMENTS: 1)Rationale. In a California Public Utilities Commission (PUC) evaluation from 2010-2012, the PUC looked at the Whole House Retrofit program and determined the program as currently implemented is not meeting its energy savings goals caused by a combination of factors that include an overestimation of savings in the retrofit planning phase (building modeling) The report concluded that in order to improve the program, better energy estimating tools would be needed, including more complete data on energy use. AB 2379 Page 3 According to the author, this bill will improve the home energy rating systems by requiring a comparison of the estimated and actual savings that a home experiences when property owners make energy efficiency improvements that are recommended by the rating system. 2)Background. An energy assessment examines energy saving opportunities in a particular building, in order to define potential upgrades. Ratings are used to compare the energy efficiency of one building to others based on standard assumptions of occupant behavior. A variety of software tools are available to perform assessments and ratings, and some contractors have 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. Examples of modeling software that estimate energy usage include EnergyPro, Home Energy Saver (HES), and Home Energy Efficient Design (HEED). Both anecdotal evidence and controlled studies have raised concerns about the accuracy of energy analysis software. 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. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 2379 Page 4