BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2543 (Gordon) - State buildings:  efficiency and conservation
          
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          |Version: June 20, 2016          |Policy Vote: G.O. 13 - 0        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
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          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)









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           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. 








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          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. 











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