BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 888
                                                                  Page  1

          Date of Hearing:   April 24, 2007

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                   Mike Eng, Chair
                     AB 888 (Lieu) - As Amended:  April 11, 2007
           
          SUBJECT  :   Green building standards. 

           SUMMARY  :   Requires commercial buildings constructed after July  
          1, 2012 to meet green building standards.  Specifically,  this  
          bill  :  

          1)Requires the California Environmental Protection Agency  
            (CalEPA) and the working group specified below, on or before  
            January 1, 2009 and after holding at least two public  
            workshops, to develop, adopt, and make available minimum green  
            building standards for commercial buildings, in consultation  
            with the building construction industry, recognized  
            environmental advocacy groups, local government entities, and  
            other interested parties. 

          2)Establishes a working group to assist CalEPA in developing the  
            standards, to include:  California Integrated Waste Management  
            Board (CIWMB); State Energy Resources Conservation and  
            Development Commission; Air Resources Board; Department of  
            Water Resources; Department of Housing and Community  
            Development; Department of General Services; and, California  
            Building Standards Commission (BSC).

          3)Requires each state agency identified above to take the lead  
            in developing standards related to its area of expertise and  
            to ensure that the standards at least meet the Leadership in  
            Energy and Environmental Design (LEED) Gold standards.

          4)Requires CalEPA to coordinate the integration of the standards  
            developed by the working group and to consult with BSC to  
            ensure that the standards are not in conflict with the  
            California Building Standards Code.

          5)Requires CalEPA, on or before July 1, 2010, to submit the  
            minimum green building standards to BSC for adoption into the  
            California Building Standards Code.  BSC may revise, but shall  
            not reduce, the standards.

          6)Requires, on and after July 1, 2012, all new commercial  








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            buildings that are 50,000 square feet or larger to be  
            constructed to meet the minimum green building standards.  Any  
            commercial building smaller than 50,000 square feet shall be  
            constructed to meet the standards unless the owner can  
            justify, based on economic considerations, an inability to  
            comply.

           EXISTING LAW  :

          1)Authorizes the State Public Works Board to develop energy and  
            water conservation and design efficiency standards for state  
            buildings.

          2)Requires the State Energy Resources Conservation and  
            Development Commission (CEC) to prescribe building design and  
            construction standards as well as energy conservation design  
            standards that increase energy efficiency for new residential  
            and non-residential buildings.

          3)Establishes, pursuant to the Governor's Executive Order  
            S-3-05, a program that 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 Governor  
            established the Climate Action Team, headed by the Secretary  
            for Environmental Protection, to implement global warming  
            emission reduction programs and to report on the progress made  
            toward meeting the statewide greenhouse gas targets that were  
            established in the order.

          4)Establishes, pursuant to the Governor's Executive Order  
            S-20-04, The Green Building Initiative, and orders the state  
            to take specified actions, including:  1) committing to  
            aggressive action to reduce state building electricity usage  
            by 20% in 2015, through cost-effective efficiency measures and  
            distributed generation technologies; and, 2) siting,  
            constructing, and operating all new and renovated state-owned  
            facilities as LEED Silver or higher certified buildings.

           FISCAL EFFECT  :   Unknown

           COMMENTS  : 

           Purpose of this bill  .  According to the author's office: "AB 888  
          requires that the state create minimum green building standards  
          for commercial construction, based on the internationally  








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          recognized LEED principles, but tailored to meet California's  
          unique geography.  Upon completion of the California specific  
          standards, and beginning in 2012, AB 888 would then require that  
          applicable projects meet these minimum standards. 

          "California is the world's 12th largest emitter of greenhouse  
          gases. Last year, the Governor signed landmark legislation, AB  
          32 (N??ez and Pavley), Chapter 488, Statutes of 2006, which  
          established the goal of reducing California's greenhouse gas  
          emissions (CHG) to 1990 levels by 2020. The building sector is  
          responsible for almost half (48%) of all energy consumption and  
          CHG emissions annually; globally the percentage is even greater.  
          Immediate action in the building sector is essential if we are  
          to avoid hazardous climate change and protect our environment.  

          "The case for quick action is bolstered by a new United Nations  
          study, which found that better architecture and energy savings  
          in buildings could do more to fight global warming than all  
          curbs on greenhouse gases agreed under the UN's Kyoto Protocal.   


          "Earlier this year, the City of Boston amended its zoning code  
          to require that all major new and rehabilitation construction  
          projects exceeding 50,000 square feet earn a minimum 26 LEED New  
          Construction points.  While Boston's zoning commission was  
          initially wary of writing LEED requirements into legislation, it  
          ultimately chose the rating system because it is the most widely  
          used at this time.  Washington D.C. and Los Angeles are planning  
          to implement a similar mandate, and other major cities are also  
          examining ways to mandate a minimal threshold for public  
          building construction. 

          "The widespread use of green building criteria will  
          substantially reduce the state's electricity consumption, air  
          pollution and water use, as well as improve occupant health and  
          worker productivity.  In addition, reducing overall energy  
          demand through green building techniques will reduce our  
          dependence on foreign oil. Therefore, it is reasonable and  
          necessary to employ green building standards in the construction  
          and renovation of public sector buildings on a widespread  
          basis."

           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  








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          of transforming the building industry to sustainability by  
          establishing a voluntary, consensus-based national rating system  
          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. 

          AB 32 (N??ez and Pavley), Chapter 488, Statutes of 2006,  
          established the Global Warming Act of 2006, which is a  
          comprehensive greenhouse gas emissions reduction program that  
          requires efforts from both the public and private sectors to  
          achieve the goal of reducing California's greenhouse gas  
          emissions to 1990 levels by 2020.  

          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.  

           Related Legislation  .  The following bills related to sustainable  
          building have been introduced in the current legislative  
          session:

          AB 35 (Ruskin) enacts the Sustainable Building Act of 2007,  
          which requires the State Public Works Board (SPWB) to adopt  








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          regulations establishing green building standards for the  
          construction and renovation of state buildings.

          AB 1058 (Laird) requires the California Environmental Protection  
          Agency to establish sustainable building best management  
          practices for residential home construction.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California League of Conservation Voters
          Natural Resources Defense Council

           Opposition 
           
          American Forest & Paper Association
          California Forestry Association
          Lumber Association of California & Nevada
           
          Analysis Prepared by  :    Ross Warren / B. & P. / (916) 319-3301