BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2543


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          ASSEMBLY THIRD READING


          AB  
          2543 (Gordon)


          As Introduced  February 19, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |9-0  |Williams, Jones,      |                    |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Gomez, Hadley,        |                    |
          |                |     |Harper, McCarty,      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Mark Stone, Wood      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Accountability  |8-0  |Cristina Garcia,      |                    |
          |                |     |Lackey, Brough,       |                    |
          |                |     |Burke, Frazier,       |                    |
          |                |     |Irwin, Medina,        |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |








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          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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.  Specifically, 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  
            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.










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          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. 
          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.   
            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.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill has the following state costs: 


          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:  a) prepare the multi-year plans; b) solicit for and  
            manage contract resources; c) participate in state building  
            audits; d) identify and evaluate potential energy and water  
            conservation measures; e) collaborate with all affected state  
            agencies; f) organize and facilitate public workshops; and g)  
            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  








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            conservation measures. 


            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 (General Fund 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:  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  








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          state programs." 


          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.   




          Analysis Prepared by:                             Elizabeth  
          MacMillan / NAT. RES. / (916) 319-2092              FN: 0003183