BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 35
                                                                  Page  1

          Date of Hearing:   April 24, 2007

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                   Mike Eng, Chair
                     AB 35 (Ruskin) - As Amended:  March 28, 2007
           
          SUBJECT  :   Environment: state buildings: sustainable building  
          standards.

           SUMMARY  :   Requires the State Public Works Board (SPWB) to adopt  
          regulations establishing green building standards for the  
          construction and renovation of state buildings, as specified.   
          Specifically,  this bill  : 

          1)Requires SPWB to adopt regulations on or before July 1, 2009,  
            for sustainable building standards for the construction and  
            renovation of state buildings that incorporate, at a minimum,  
            the US Green Building Council's Leadership in Energy and  
            Environmental Design (LEED) Silver rating.

          2)Requires the regulations to consider other relevant  
            guidelines, as specified, and to be consistent with  
            California's building standards, provide credits for projects  
            that use wood products with a "credible third party  
            sustainable forest certification" and to projects that use  
            California based products and materials.

          3)Requires the regulations to be developed by SPWB, State Energy  
            Commission, California Integrated Waste Management Board, and  
            Department of General Services, and in consultation with the  
            building and construction industry; the building and  
            construction supplies industry; environmental groups;  
            sustainable building groups; other interested organizations;  
            and the public.

          4)Requires SPWB to consult with the Building Standards  
            Commission to ensure that the regulations are consistent with  
            the California Building Standards Code, but specifically  
            exempts the regulations from compliance with building  
            standards codes promulgated by the California Building  
            Standards Commission.

          5)Requires that any state building for which development of  
            capital plans or renovations begins on or after July 1, 2010,  
            be built, designed, and operated in accordance with the  








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            regulations adopted by SPWB.

           EXISTING LAW authorizes SPWB to approve energy conservation  
          measures and energy service contracts for existing state  
          buildings if cost savings will be realized.  Existing law also  
          requires new public buildings and publicly funded schools to be  
          models of energy efficiency and be designed, constructed, and  
          equipped with all energy efficiency measures, materials, and  
          devices, if feasible.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office:  
          "Despite many executive orders dealing with sustainable building  
          and energy conservation, there is no statutory mandate to direct  
          the state to build in a sustainable manner.  AB 35 seeks to  
          ensure that these efforts continue by codifying these practices  
          in a fair and flexible manner.  

          "According to the US Green Building Council, in the United  
          States, buildings account for: 
             1)   36% of total energy use/65% of electricity  
               consumption
             2)   30% of greenhouse gas emissions
             3)   30% of raw materials use
             4)   30% of waste output/136 million tons annually
             5)   12% of potable water consumption

          "The inclusion of green building principles substantially  
          reduces the costs and environmental impacts associated with  
          long-term building operations, without compromising building  
          performance or the needs of future generations.  The State has  
          success stories in this area including the East End Project and  
          the CalEPA Building.  The CalEPA building came in under budget  
          for their retrofits.  They spent between $3-6 million for their  
          green features; and within 5 years they saved $8 million in  
          energy, water, and waste alone."

           Background  .  The US Green Building Council (USGBC) is a national  
          non-profit organization comprised of more than 7,500 member  
          organizations and 75 regional chapters working toward the goal  
          of transforming the building industry to sustainability by  
          establishing a voluntary, consensus-based national rating system  








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          for developing high-performance, sustainable buildings. USGBC's  
          members, representing every sector of the building industry,  
          developed and continue to refine Leadership in Energy and  
          Environmental Design to address all building types including new  
          construction, commercial interiors, core and shell, operations  
          and maintenance, homes, neighborhoods, and specific applications  
          such as retail, multiple buildings/campuses, schools,  
          healthcare, laboratories and lodging.  LEED emphasizes state of  
          the art strategies for sustainable site development, water  
          savings, energy efficiency, materials selection and indoor  
          environmental quality.  LEED promotes expertise in green  
          building through a comprehensive system offering project  
          certification, professional accreditation, training and  
          practical resources. 

          Executive Order S-20-04 of 2004 established the Green Building  
          Initiative, which ordered the state to take specified actions  
          relative to improving energy efficiency in buildings, including  
          designing, constructing and operating all new and renovated  
          state-owned facilities paid for with state funds as "LEED  
          Silver" or higher certified buildings, encouraging state  
          agencies to reduce energy purchases from state-owned buildings  
          by 20% by 2015, urging the State Architect to adopt energy  
          efficiency guidelines for new schools, and requiring the  
          California Energy Commission to take all actions within its  
          authority to increase energy efficiency within non-residential  
          buildings by 20% by 2015.  The Executive Order also directed the  
          state to identify the most appropriate financing and project  
          delivery mechanisms to achieve these goals.  

          Executive Order S-3-05 calls for a reduction of greenhouse gas  
          emissions to 2000 levels by 2010; to 1990 levels by 2020; and to  
          80 percent below 1990 levels by 2050.  The Climate Action Team  
          Report to the Governor and the Legislature identifies strategies  
          to reduce greenhouse gas emissions that include continued  
          implementation of the Green Building Initiative and energy  
          efficiency standards for state buildings.

           Previous legislation  .  The author introduced a similar measure  
          in 2005 that was vetoed in 2006 (AB 1337).  The Governor's veto  
          message of that bill is provided below.  It is notable that the  
          author appears to have partially addressed the basis for the  
          Governor's veto by no longer requiring the California Integrated  
          Waste Management Board to be develop the green building  
          standards.  However, the Governor's veto message suggests the  








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          Building Standards Commission would be the appropriate entity to  
          develop the standards, and this still differs from that  
          suggestion by requiring SWPB to perform the task of developing  
          green building regulations.  The Governor's veto message states:  


          "In California, building standards are developed by the  
          California Building Standards Commission.  They prescribe how  
          State building standards are written and promulgated in a public  
          and participatory manner.  The California Integrated Waste  
          Management Board expertise is in waste management and reduction  
          and they have done excellent work in identifying new uses in  
          building products for recycled material.   However, the Board  
          does not have the expertise in building standards, public  
          safety, building design and construction, fire codes and public  
          process to ensure the standards are developed in an appropriate  
          manner."

           Support  .  The American Federation of State, County and Municipal  
          Employees (AFSCME) writes: "Green building guidelines would be a  
          tremendous asset to the State.  Costs for energy, water and  
          waste disposal during the life of a building far exceed the cost  
          of the building itself.  These guidelines will substantially  
          reduce these operational costs by reducing consumption of  
          energy.  In addition, this measure will help to reduce harmful  
          carbon emissions by helping to build a new generation of more  
          energy efficient facilities.

          "The building guidelines proposed by the legislation are both  
          practical and achievable, given the materials and technology  
          available due to California's rapidly expanding clean technology  
          sector.  AFSCME supports this effort to build more efficient  
          State facilities and to reduce energy consumption."

          The California League of Conservation Voters writes: "AB 35  
          builds upon the Governor's 2004 Executive Order on green  
          buildings, which directs state agencies to implement measures to  
          reduce energy consumption in state buildings by 20% by 2015.   
          With the aggressive AB 32 [(Nunez), Chapter 488, Statutes of  
          2006] goals to reduce greenhouse gas emissions now in statute,  
          California will need to take all reasonable steps to achieve  
          emissions reductions."

           Opposition  .  The Forest Products Industry National Labor  
          Management Committee writes: "We have specific concerns that the  








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          measure establishes the LEED "silver rating" as the base model  
          to be used by the various agencies charged with developing the  
          individual "sustainable building standard" components.  The  
          provisions of other "green building" programs can be considered  
          only if they offer a more stringent level of compliance than the  
          related provisions offered in the LEED "silver rating" program.   
          In effect, these provisions would render the other standards  
          meaningless because it first says that the LEED silver standard  
          must be adopted at a minimum."

          The remaining opposition - California Building Industry  
          Association, California Forestry Association, Green Diamond  
          Resources, and Lumber Association of California & Nevada - have  
          written a joint letter that contains many arguments that are  
          consistent with the Forest Products Industry National Labor  
          Management Committee's arguments against establishing the LEED  
          silver rating as the minimum standard for construction of state  
          buildings.  They also assert: "The bill specifically excludes  
          the "sustainable building standards" from having to comply with  
          the Building Standards Commission's administrative review and  
          adoption process that all other state building standards are  
          subject to (and have been for the last 30 years).  This means  
          that the "sustainable building standards" would not be required  
          to meet any of the criteria required of all other building  
          standards, including the criteria related to "cost impact."   
          While we support sustainable building practices, we feel these  
          proposals should be considered within the same administrative  
          process that was established for the review and approval of  
          building standards related to energy efficiency, fire safety,  
          structural and seismic safety and disabled accessibility."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          California League of Conservation Voters
          California State Employees Association
          Sacramento Metropolitan Air Quality Management District
          Sierra Club of California
          450 Architects, Inc.

           Opposition 
           








                                                                  AB 35
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          California Building Industry Association
          California Forestry Association
          California State University Office of The Chancellor
          Forest Products Industry National Labor Management Committee
          Green Diamond Resources
          Lumber Association of California & Nevada
           
          Analysis Prepared by  :    Ross Warren / B. & P. / (916) 319-3301