BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2543


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          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  








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               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  








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            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  








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            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









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          None on file




          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092