BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 888 (Lieu)
          As Amended April 11, 2007
          Majority vote 

           NATURAL RESOURCES   6-2         BUSINESS AND PROFESSIONS       
          7-3                             
           
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          |Ayes:|Hancock, Brownley, Laird. |Ayes:|Eng, Bass, Carter,        |
          |     |Saldana, Wolk, Huffman    |     |Hayashi, Hernandez,       |
          |     |                          |     |Price, Torrico            |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Fuller, Keene             |Nays:|Emmerson, Horton, Maze    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS                                                  
                         (vote not available)

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

             a)   Defines "green building" as a project designed to reduce  
               direct and indirect environmental consequences associated  
               with its construction, use, operation, maintenance, and  
               decommissioning, based on cost, quality of life impacts,  
               future flexibility, ease of maintenance, energy and  
               resource efficiency, and overall environmental impact, with  
               an emphasis on life-cycle cost;  

             b)   Defines "minimum green building standards" as standards  
               for commercial buildings that, at a minimum, meet the LEED  
               Gold rating or equivalent, and include:  site  
               sustainability; water efficiency; energy and atmosphere;  
               material and resources and sustainable wood (as specified);  
               indoor environmental quality; innovation and design  
               process; non-motorized transport; and a method for  
               determining life-cycle cost; and,

             c)   Defines "commercial building" as a nonresidential  
               building that is specified within the occupancy groups  








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               specified in Group B of Section 100 of Title 24 (the  
               California Building Code), which includes office and  
               professional buildings, and exempts eating establishments  
               and buildings owned or leased by the state or the  
               University of California.  

          2)Requires the California Environmental Protection Agency  
            (CalEPA) and the working group, 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. 

          3)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).  

          4)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 LEED Gold  
            standards. 

          5)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.  

          6)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.  

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








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            comply.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, moderate costs, in the range of $300,000 annually in  
          2008-09 and 2009-10, to CalEPA to support the activities of the  
          state agency work group, to coordinate state-agency-developed  
          minimum green building standards, and to pay BSC costs to review  
          and revise those minimum standards.  (GF or various special  
          regulatory funds).

           COMMENTS  :  According to the author's office, the widespread use  
          of green building criteria will substantially reduce the state's  
          energy consumption, air pollution, and water use, as well as  
          improve worker health and productivity.   Additionally, green  
          building reduces greenhouse gas emissions and will assist the  
          state in achieving the greenhouse gas reduction goals  
          established by Executive Order S-3-05.  Therefore, the author  
          argues that "it is reasonable and necessary to employ green  
          building standards in the construction and renovation of  
          commercial buildings."  

           CIWMB's Web site states that sustainable buildings:  1) focus on  
          life-cycle cost analysis, sustainable buildings are less costly  
          in the long term due to lower operating expenses; 2) siting new  
          construction near mass transit, designing to retain the existing  
          natural features, and use of environmentally sound landscaping  
          practices; 3) use of energy efficient materials and construction  
          techniques; 4) use of sustainable construction materials, such  
          as recycled content materials, low-emission products, and  
          materials with high durability; 5) design for water and energy  
          efficiency; and, 6) ongoing sustainable maintenance practices  
          and products.  
           
          The US Green Building Council 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.  To further this goal,  
          it developed the LEED Green Building Rating System.  To earn  
          certification, a building project must meet certain  
          prerequisites and performance benchmarks (credits) within each  
          category.  Projects are awarded Certified, Silver, Gold, or  
          Platinum certification depending on the number of credits they  
          achieve. 









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          LEED is the most widely-used benchmark for the design,  
          construction, and operation of high performance sustainable  
          buildings.  LEED promotes a whole-building approach to  
          sustainability by recognizing performance in five key areas of  
          human and environmental health: sustainable site development,  
          water savings, energy efficiency, materials selection, and  
          indoor environmental quality.  
           
           The state has taken significant actions to encourage sustainable  
          development; however, the state has not enacted legislation  
          codifying these steps.  In Executive Order S-20-04 (The Green  
          Building Initiative), adopted in July of 2004, the Governor  
          committed the state to reducing the state's energy usage by  
          constructing, retrofitting, and operating state buildings in an  
          energy-efficient manner.  The Sustainable Building Task Force  
          (Task Force) is a partnership of more than 40 governmental  
          agencies, led by the State and Consumer Services Agency, which  
          is charged with implementing The Green Building Initiative.  It  
          comprises representatives from various state agencies with  
          specific fiscal, construction, and environmental policy  
          expertise.  

          The Task Force completed  Building Better Buildings:  A Blueprint  
          for Sustainable State Facilities  in April, 2001 to recommend  
          strategies to incorporate cost-effective sustainable building  
          strategies into the development of state property.  The report  
          notes that California invests over $2.5 billion in the design,  
          construction, and renovation of state facilities annually.   
          Buildings consume more than 30% of the energy used in the U.S.,  
          produce 25% of greenhouse gas emissions, generate approximately  
          30% of the state's solid waste stream, and affect the health,  
          comfort, and productivity of building occupants.  The blueprint  
          also identified barriers to sustainable building in state  
          government, including the lack of "uniform building performance,  
          operating, and maintenance standards for state facilities."

          The Governor acknowledged climate change as a threat to the  
          environment and committed the state to taking action to address  
          this issue by signing Executive Order S-3-05.  The order 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's report, Climate  
          Action Team Report to the Governor and the Legislature,  
          identifies strategies to reduce greenhouse gas emissions that  








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          include continued implementation of the Green Building  
          Initiative and energy efficiency standards for state buildings.

          Early in 2007, the state approved a life-cycle cost assessment  
          methodology to quantify the overall costs and long-term savings  
          of sustainable building.  This tool should streamline and  
          simplify the implementation of sustainable building requirements  
          for state buildings.  

          
          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 


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