BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2543 (Gordon) - State buildings: efficiency and conservation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 20, 2016 |Policy Vote: G.O. 13 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2543 would assign 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. Fiscal Impact: Estimated ongoing costs to CEC of $950,000 per year for developing and implementing the plan. (GF) Unknown, but potentially significant costs to CEC for contract resources that will be needed to fund state building audits and to identify and evaluate potential energy and water conservation measures. (GF) AB 2543 (Gordon) Page 1 of ? Ongoing, minor and absorbable costs for DGS to consult with the CEC in preparing the biennial energy and water conservation report and integrating water conservation into the report. (Service Revolving Fund) Background: The California Energy Commission is the state's primary energy policy and planning agency. Among its seven core responsibilities are promoting energy efficiency and conservation by setting the state's appliance and building energy efficiency standards. The Office of Sustainability, within DGS, is committed to reducing California's environmental footprint by greening the state's buildings; reducing greenhouse gas emissions; and reducing water use. Among other green responsibilities, DGS develops the statutorily required multi-year energy efficiency plan for state buildings and provides a biennial report to the Governor and Legislature that contains recommendations and specific information on energy efficiency projects in its jurisdiction. This bill would shift the primary responsibility for the multi-year plan to the CEC. According to the author, this bill aims to create a stronger investigative partnership between the CEC and DGS to work toward greater energy efficiency and water conservation in state buildings, and enable experts in the field to guide the statewide strategy. Proposed Law: This bill would assign CEC lead responsibility in developing a multi-year energy efficiency plan for state facilities, instead of DGS, and requires CEC solicit input from both public and private entities while developing the plan. Water conservation methods are added to the scope of the plan. This bill specifies that the plan shall not prohibit, limit, or supersede more stringent green building requirements for state facilities. This bill also requires DGS to consult with CEC when making recommendations to improve energy efficiency and water conservation in state facilities and to submit a related report to the Governor and Legislature by January 1, 2018. AB 2543 (Gordon) Page 2 of ? Related Legislation: AB 850 (Gordon, 2011) would have required the CEC, in consultation with DGS and other state agencies and departments, to develop a multi-year plan of energy efficiency and water conservation in state facilities. That bill was held in the Assembly Appropriations Committee. AB 527 (Torrico, 2007) would have required DGS, in partnership with the CEC to adopt a state plan to include new energy efficient technologies in public buildings and would create The California Energy Efficient Technology Pooled Investment Fund to implement the plan. That bill was vetoed by Governor Schwarzenegger. Staff Comments: The CEC estimates that it would incur costs of $950,000 annually for 3.25 personnel years. An estimated three new technical staff at the Energy Commission 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. The bill does not specify a funding source and the CEC basic funding source, the Energy Resources Programs Account, is in deficit so these costs are therefore not absorbable by that account or any other existing Energy Commission fund. Either General Fund or some other special fund would be needed to pay for this bill. DGS already carries out the proposed provision to include water conservation in the state's plan to reach efficiency and conservation goals in state buildings. AB 2543 (Gordon) Page 3 of ? -- END --