BILL ANALYSIS Ó AB 2543 Page 1 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, | | AB 2543 Page 2 | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ 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. AB 2543 Page 3 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 AB 2543 Page 4 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 AB 2543 Page 5 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