BILL ANALYSIS Ó
SB 1414
Page 1
SENATE THIRD READING
SB
1414 (Wolk)
As Amended August 19, 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, Chang, |Obernolte |
| | |Eggman, | |
| | | | |
| | | | |
| | |Eduardo Garcia, Quirk, | |
| | |Santiago, Weber, Wood, | |
SB 1414
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| | |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.
4)Clarifies that heat pumps and their related fans are subject
to permit closure requirements created under this bill.
5)Specifies that a "customer or contractor" is the recipient of
a rebate or incentive.
SB 1414
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6)Specifies a utility shall provide rebates or incentives to a
customer or contractor only if the customer or contractor has
complied with permitting requirements, including any
applicable specifications in Title 24 of the California
Building Standards Code.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)Increases CEC costs of approximately $650,000 for the first
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.
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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
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:
0004714