BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1414 (Wolk) - Energy
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|Version: April 12, 2016 |Policy Vote: E., U., & C. 9 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 2, 2016 |Consultant: Narisha Bonakdar |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 1414 directs the California Energy Commission (CEC)
to develop a system to track central heating and air cooling
equipment sales and installations to verify compliance with
permitting and other requirements. This bill also prohibits an
investor-owned utility (IOU) from paying out a rebate or
incentive for energy efficiency upgrades unless the recipient
proves closure of regulatory permitting and compliance with any
requirements of the state's building standards for energy
efficiency.
Fiscal
Impact:
Unknown, but significant, one-time costs (Energy Resources
Programs Account) to the CEC develop the tracking system.
Ongoing costs of $1.3 million (Energy Resources Programs
Account) to the CEC for staff and system maintenance.
Background: According to a document jointly issued by the CEC and
SB 1414 (Wolk) Page 1 of
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California Public Utilities Commission, as of 2008, fewer than
10 percent of HVAC systems obtained legally required
pre-installation local building permits; 30-50 percent of new
central air conditioning systems were not being properly
installed, leading to a 20-30 percent
Current law makes certain requirements of any rebate or
incentive offered by an IOU for energy efficiency upgrades. One
common type of project for which IOUs offer rebates or
incentives is HVAC installation. Relevant to this bill, current
law requires that, before an IOU may provide a recipient with
the rebate or incentive, the recipient must certify (a) the
improvement or installation complies with any applicable
permitting requirements and (b) if a contractor performed the
installation or improvement, that the contractor holds the
appropriate license for the work performed.
This bill modifies this process in that it newly requires an
applicant for an IOU rebate or incentive, in addition to the
certification described above, (a) to provide proof of closure
of the permit for the project and (b) to certify that the
project or installation complies with any specifications or
requirements in Title 24 of the California building code (the
code section that includes the CEC's building energy efficiency
standards).
Proposed Law:
This bill:
1)Requires the CEC, in consultation with the Contractors' State
License Board, local building officials, and other
stakeholders, to develop a system to track central heating and
air cooling equipment sales and installations, statewide, to
verify compliance with permitting, inspection, and equipment
testing requirements.
2)Conditions the provision of any rebate or incentive offered by
an IOU for energy efficiency upgrades upon the recipient
providing proof of permit closure and certification of
compliance with California's energy efficiency building
standards.
SB 1414 (Wolk) Page 2 of
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Related
Legislation: AB 1918 (Williams, 2014) would have required the
CEC, along with stakeholders, to identify and implement methods
to simplify processes and procedures related to compliance with
Title 24 energy efficiency building standards. It also would
have required CPUC to design an enforcement program to provide
technical and financial assistance to local governments to
improve HVAC compliance with the permitting process. The bill
was held in Senate Committee on Appropriations.
Staff
Comments: According to the CEC, the development and
implementation of this database is not an appropriate use of the
Energy Resources Programs Account. However, given that the
account is funded through a tax, these funds may be used, upon
appropriation by the Legislature, for the specified purpose.
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