BILL ANALYSIS Ó
AB 2543
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2543 (Gordon) - As Introduced February 19, 2016
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|Policy |Natural Resources |Vote:|9 - 0 |
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| |Accountability and | |8 - 0 |
| |Administrative Review | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill assigns primary responsibility for developing a
multi-year energy efficiency plan for state facilities to the
California Energy Commission (CEC), instead of the Department of
General Services (DGS), and expands the scope of the plan to
include water conservation. Specifically, this bill:
AB 2543
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1)Revises the existing requirement to develop a multi-year
energy efficiency plan to give the CEC lead responsibility,
instead of DGS, and requires the CEC to solicit input from
both public and private entities when developing the plan.
2)Adds water conservation measures to the scope of the plan.
3)Specifies that the plan may not prohibit, limit, or supersede
more stringent green building requirements for public
buildings.
4)Excludes state-leased buildings from the plan, except those
financed through lease-revenue bonds.
5)Requires DGS to consult with the CEC when making
recommendations to improve energy and water efficiency in
state facilities and submit a related report to the Governor
and Legislature by January 1, 2018.
FISCAL EFFECT:
1)Increased ongoing costs of $500,000 in contracts and an
estimated $200,000 to $350,000 for three positions at the CEC
(unknown funding source).
The CEC estimates three new technical staff would be required
to: 1) prepare the multi-year plans; 2) solicit for and
manage contract resources; 3) participate in state building
audits; 4) identify and evaluate potential energy and water
conservation measures; 5) collaborate with all affected state
agencies; 6) organize and facilitate public workshops; and
7)track multi-year plan implementations. Contract resources
will be needed to fund state building audits as well as
identification and evaluation of potential energy and water
conservation measures.
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These new responsibilities are not able to be absorbed by
current resources. The CEC basic funding source is ERPA
(Energy Program Resource Account) but it is currently in
deficit, so some other fund would need to be identified to pay
for this bill (GF or other special fund).
2)Minimal fiscal impact on DGS, and potential cost savings.
Although the bill shifts responsibility of the report to CEC,
DGS is still required to make recommendations and report
information on energy efficiency measures.
COMMENTS:
1)Purpose. Currently, DGS is the state's lead agency in the
greening of government. Among other green responsibilities,
it develops the statutorily-required multi-year energy
efficiency plan for state buildings and provides a biennial
report to the Governor and Legislature that contains specific
information on energy efficiency projects in its jurisdiction.
This bill would instead shift primary responsibility for the
plan to the CEC and include water conservation measures in the
scope of the plan.
According to the author, this bill seeks to create a stronger
investigative partnership between the CEC and DGS in order to
identify potential measures for greater energy and water
efficiency in state buildings. This bill gives the CEC a
greater role in ensuring that the state is doing as much as
possible to reduce energy and water consumption.
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2)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
critical to the function of state programs."
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
AB 2543
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