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
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          |Author:    |Gordon                                               |
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          |Version:   |6/20/2016    Amended                                 |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Felipe Lopez                                         |
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          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:








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             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."









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          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  








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          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."