BILL ANALYSIS Ó AB 2543 Page 1 Date of Hearing: April 4, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 2543 (Gordon) - As Introduced February 19, 2016 SUBJECT: State buildings: efficiency SUMMARY: Revises existing energy efficiency planning requirements for state facilities to give the California Energy Commission (CEC) lead responsibility, instead of the Department of General Services (DGS), and adds consideration of water conservation. EXISTING LAW: 1)Requires DGS, in consultation with the CEC, to develop a multi-year plan, to be updated biennially, with the goal of exploiting all practicable and cost-effective energy efficiency measures in state facilities. Requires DGS make related recommendations and report on: a) Progress made toward implementing energy efficiency measures in state facilities; b) The most common energy efficiency measures being implemented; c) Obstacles preventing further implementation of energy AB 2543 Page 2 efficiency measures; and, d) How current efforts and ideas can be incorporated into the Governor's five-year infrastructure plan. 2)Authorizes the State Public Works Board to develop energy and water conservation and design efficiency standards for state buildings. 3)Requires all new state buildings, as well as existing buildings when renovated or remodeled, to meet energy efficiency standards adopted by the CEC, and requires DGS or other responsible state agencies to consider additional energy efficiency measures that are cost-effective and feasible. 4)Requires all new public buildings to be models of energy efficiency - designed, constructed and equipped with all energy efficiency measures, materials and devices that are feasible and cost-effective. 5)Pursuant to Executive Order S-20-04, requires the state to take specified actions, including: 1) committing to aggressive action to reduce state building electricity usage by 20% by 2015, through cost-effective efficiency measures and distributed generation technologies; and, 2) siting, constructing, and operating all new and renovated state-owned facilities as Leadership in Energy and Environmental Design (LEED) Silver or higher certified buildings. THIS BILL: 1)Revises the multi-year plan required under existing law to give CEC lead responsibility, in consultation with DGS. 2)Adds water conservation to the planning requirement. 3)Prohibits the plan from prohibiting, limiting, or superseding more stringent green building requirements for public AB 2543 Page 3 buildings. 4)Excludes from the plan buildings leased by the state, except those financed through lease-revenue bonds. 5)Requires DGS to consult with CEC when making recommendations to improve energy efficiency and water efficiency in state facilities and developing the related report. FISCAL EFFECT: Unknown COMMENTS: 1)Background. Since at least 1991, state law has required new and renovated state buildings to meet prevailing energy efficiency standards and to consider additional measures when cost-effective and feasible. Over the same period, DGS has been required to continually update an energy efficiency plan for state facilities. However, because their capital budgets are disconnected from their utility budgets, state agencies often have lacked the incentive and the funds to fully exploit cost-effective energy efficiency opportunities in building design and materials. DGS' most recent report, Biennial Report for Energy Efficiency in Public Buildings, was submitted to the Legislature July 25, 2013. The report includes progress made on greenhouse gas (GHG) emissions reductions, energy efficiency, reducing grid-based energy purchases, demand response programs, on-site renewable energy goals, building design and construction, existing buildings, building commissioning, indoor environmental quality, water efficiency and conservation, electric vehicle charging, and environmentally preferable purchasing. According to the report, "the greatest obstacle to implementing energy efficiency measures is lack of funding. The prolonged economic downturn has greatly impacted the availability of General Fund allocations to projects that are AB 2543 Page 4 critical to the function of state programs." 2)This bill. While DGS has oversight over state facilities, CEC has broader expertise and experience with energy and water efficiency measures and potential funding sources. This bill would give CEC a greater role in ensuring that the state is doing as much as possible to improve energy and water efficiency. According to the author: In order to foster energy efficiency in state operations, AB 2543 seeks to create a stronger investigative partnership between the CEC and DGS in order to identify potential measures for greater energy use efficiency in state buildings. The CEC will lead the evaluation, and DGS will continue to report progress in the implementation of energy efficiency measures in state facilities. This bill would also enhance the scope of the process to include water conservation and efficiency strategies. 3)Double referral. This bill has also been referred to the Assembly Accountability and Administrative Review Committee. REGISTERED SUPPORT / OPPOSITION: Support California Municipal Utilities Association Opposition AB 2543 Page 5 None on file Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916) 319-2092