BILL ANALYSIS Ó
SB 1414
Page 1
SENATE THIRD READING
SB
1414 (Wolk)
As Amended August 3, 2016
Majority vote
SENATE VOTE: 30-9
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |10-4 |Gatto, Burke, Eggman, |Patterson, Chávez, |
| | | |Dahle, Obernolte |
| | | | |
| | | | |
| | |Cristina Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Quirk, Santiago, | |
| | |Ting, Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |12-3 |Gonzalez, Bloom, |Bigelow, Jones, |
| | |Bonilla, Bonta, |Obernolte |
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| | |Chang, Eggman, | |
| | |Eduardo Garcia, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood, McCarty | |
| | | | |
| | | | |
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SUMMARY: Directs the California Energy Commission (CEC), in
consultation with the Contractors' State License Board (CSLB),
local building officials and other stakeholders to devise a plan
to promote compliance with energy efficient building standards
for the installation of central air conditioning and heat pumps
(HVAC) by January 1, 2019. Specifically, this bill:
1)Allows the CEC to adopt regulations to increase compliance
with permitting and inspection of HVAC installations and
associated activities.
2)Requires energy efficient rebates or incentives from a public
utility for HVAC projects be provided only if a recipient
provides proof of permit closure for the project and complied
with the California Building Standards Code.
3)Clarifies the California Public Utilities Commission's (CPUC)
statutory authority to supervise cost-effective energy
efficiency programs and impose additional requirements on a
recipient of any rebate or incentive.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)Increases CEC costs of approximately $650,000 for the first
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two years, then annual costs of approximately $400,000 per
year to prepare and implement the plan (special fund).
2)Increases CPUC costs of approximately $150,000 per year
(special fund).
COMMENTS:
1)Purpose: According to the author, this bill supports
statewide energy efficiency goals to increase compliance with
state building energy efficiency standards to 90% by 2020 and
ensures that ratepayer dollars are spent on projects that meet
required local government health and safety permitting
requirements.
2)Background: According to the California Energy Efficiency
Strategic Plan, jointly prepared by CEC and the CPUC, as of
2008, fewer than 10% of HVAC systems obtained legally required
pre-installation local building permits. Between 30% to 50%
of new central air conditioning systems were not being
properly installed, leading to a 20% to 30% increase in the
peak energy needed to provide consumers with cooling on hot
summer days.
Currently, the CPUC is conducting an HVAC Market Assessment to
determine compliance with building standard and permitting
requirements. According to preliminary findings provided in a
staff white paper released in April 2016, 35% of HVAC
replacements were permitted. Additionally, code requirements
were met 79% of the time for permitted installations and 60%
of the time for unpermitted installations. These preliminary
findings suggest that although more HVAC systems are permitted
than were in 2008, unpermitted HVAC systems are installed
incorrectly at a higher rate than those with proper
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permitting.
This bill is intended to increase compliance and ensure that
publicly funded incentives for HVAC installations are properly
permitted.
Analysis Prepared by:
Darion Johnston / U. & C. / (916) 319-2083 FN:
0004089