BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 2543 Hearing Date: 6/28/2016 ----------------------------------------------------------------- |Author: |Gordon | |-----------+-----------------------------------------------------| |Version: |6/20/2016 Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: State buildings: efficiency and conservation DIGEST: 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. ANALYSIS: Existing law: 1)Requires DGS, in consultation with other state entities that include the State Energy Resources Conservation and Development Commission, to develop a plan to exploit cost-effective energy efficiency measures in state facilities. 2)Requires DGS to update the plan biennially, coordinate implementation efforts, and make recommendations to the Governor and the Legislature to achieve energy goals for state facilities. 3)Requires DGS to make these recommendations no later than March 1, 2009, and biennially thereafter. 4)Requires DGS to include all of the following in its report for projects under its jurisdictions: AB 2543 (Gordon) Page 2 of ? a) The progress made toward implementing energy efficiency measures in state facilities. b) The most common energy efficiency measures being implemented. c) The obstacles preventing further implementation of energy measures. d) How current efforts and ideas can be incorporated into the Governor's five-year infrastructure plan. This bill: 1)Assigns primary responsibility for developing a multi-year energy efficiency plan for state facilities to the CEC instead of DGS. 2)Adds water conservation measures to the scope of the plan. 3)Requires the CEC to solicit input from both public and private entities. 4)Specifies that the plan shall not prohibit, limit, or supersede more stringent green building requirements for state facilities. 5)Defines "state facility" to mean any public building, but does not include any building leased by the state, unless that building is financed through the issuance of lease-revenue bonds. 6)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, and biennially thereafter. Background Purpose of the bill. According to the author, " the bill would continue to task DGS to report to the Legislature on the progress of the implementation of energy efficiency measures in state facilities, but this bill will include the consultation of the CEC in that report. By engaging CEC as the lead on the evaluation of energy efficiency strategies, we are enabling our own experts in the field to guide our statewide strategy." AB 2543 (Gordon) Page 3 of ? California Energy Commission. The CEC is the state's primary energy policy and planning agency. Established by the Legislature in 1974, the seven core responsibilities include: 1)Forecasting future energy needs; 2)Promoting energy efficiency and conservation by setting the state's appliance and building energy efficiency standards; 3)Supporting energy research that advances energy science and technology through research, development and demonstrations projects; 4)Developing renewable energy resources; 5)Advancing alternative and renewable transportation fuels and technologies; 6)Certifying thermal power plants 50 megawatts and larger; 7)Planning for and directing state response to energy emergencies. The Governor appoints the five members of the CEC to staggered five-year terms and selects a chair and vice chair from among the members every two years. The appointments require Senate approval. By law, one CEC member must be selected from the public at large. The remaining commissioners represent the fields of engineering/physical science, economics, environmental protection, and law. Prior/Related Legislation AB 606 (Levine, Chapter 665, Statutes of 2015) required state agencies to reduce water consumption and increase water efficiencies when building on state-owned real property, purchasing real property, or replacing landscaping or irrigation, where feasible, and provided an exemption for state property that is leased to a private party for agricultural purposes. SB 553 (Wolk, 2015) would have required DGS to identify each public property in DGS' state property inventory where it is feasible for water consumption to be reduced and water efficiencies to be achieved through implementation of the relevant recommendations made in the model water efficient landscape ordinance and would require DGS to implement relevant recommendations where feasible, except as specified. (Held on Senate Appropriations Suspense File) AB 850 (Gordon, 2011) would have required the CEC, in AB 2543 (Gordon) Page 4 of ? consultation with DGS and other state agencies and departments, to develop a multi-year plan of energy efficiency and water conservation for state facilitates. (Held on Assembly Appropriations Suspense File) AB 527 (Torrico, 2007) would have required DGS, in partnership with the CEC to adopt a state plan to include new, emerging energy efficient technologies in public buildings. (Vetoed by Governor Schwarzenegger) FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: California Chapters of the National Electrical Contractors Association California Municipal Utilities Association City of Sacramento East Bay Municipal Utility District San Diego County Water Authority OPPOSITION: None received ARGUMENTS IN SUPPORT: According to the California Municipal Utilities Association, "the CEC has a long history of developing energy efficiency policies and guidelines, more so than DGS. In this era where droughts appear to be the new normal, it makes sense that the CEC take over as lead on developing water conservation measures for the state's numerous facilities."