BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Tom Torlakson, Chairman
888 (Lieu )
Hearing Date: 8/30/07 Amended: 7/10/07
Consultant: Miriam Barcellona IngenitoPolicy Vote: EQ 4-2
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AB 888 (Lieu)
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BILL SUMMARY: AB 888 would create the Green Building Standards
for Nonresidential Buildings Law.
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Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09 2009-10 Fund
Develop standards -unknown, in excess of $150 GF
Adopt standards -minor and absorbable GF
Implement standards in -unknown increase in construction costsGF
applicable state buildings offset by unknown, potentially
savings
in out years
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STAFF COMMENTS: Suspense file. As Proposed to be amended.
Staff notes that a green building, also known as a sustainable
building, is a structure that is designed, built, renovated,
operated, or reused in an ecological and resource-efficient
manner. Green buildings are designed to meet certain objectives,
such as the following: protecting occupant health; improving
employee productivity; using energy, water, and other resources
more efficiently; and reducing the overall impact to the
environment. A common green building standard often referenced
is the United States Green Building Council's Leadership in
Energy and Environmental Design (LEED), which includes different
ratings including certified, silver, gold, and platinum.
AB 888 would require the California Environmental Protection
Agency (CalEPA) to coordinate a working group of state agencies,
consulting with specified representatives from the public and
interest groups, to develop by July 1, 2009 a set of minimum
green building standards for commercial buildings of LEED gold
rating level, "or equivalent". Staff notes that on page 5, line
13, and line 23 "or equivalent" is not stated, as it is in the
definition section of the bill.
CalEPA would be required to submit the minimum green building
standards to the California Building Standards Commission (BSC)
for review to ensure that these standards do not fall short or
AB 888 (Lieu)
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conflict with existing commercial building standards. BSC would
be authorized to revise the standards so long as those revisions
do not reduce the environmental benefits of efficiencies to be
achieved by the minimum standards submitted by the agency.
CalEPA estimates it would require about one position and $10,000
for contract costs. Other state agencies required to participate
in the working group would experience minor and absorbable costs
(generally less than a quarter of an existing position). BSC
indicates its costs to comply with AB 888 would be minor and
absorbable. However, BSC has indicated to staff that it would
like the development of the standards to be charged to BSC.
Staff notes that this issue was considered in the policy
committee. Under existing law, (Health and Safety Code Section
18930) "any building standard adopted or proposed by state
agencies shall be submitted to, and approved or adopted by, the
California Building Standards Commission prior to codification."
BSC does not have the authority to develop those standards.
However, BSC has the authority under existing law (Health and
Safety Code Section 18934.5) to adopt building standards
applicable to state buildings.
Commencing on July 1, 2012, AB 888 would require new commercial
buildings to meet the minimum green standards adopted by BSC.
"Commercial buildings" is defined in the bill to mean a building
or structure that is in occupancy Group B as specified in
Section 304 of Title 24 of the California Code of Regulations.
This definition is lacking a "Part" reference, which would limit
the bill to the buildings intended. As it is currently written,
this definition is very broad and includes the University of
California (UC), California State University, and community
college campuses, among other seemingly unintended entities.
Additionally, AB 888 explicitly excludes specified buildings on
UC campuses from these provisions. Staff recommends deleting
those provisions because there are three areas in which the
courts have held that legislative enactments may intrude into UC
affairs: (1) appropriation of state moneys for UC purposes,
which includes the setting of conditions for expenditure of
these moneys; (2) exercise of the statewide general police power
to provide for the public health, safety, and welfare, (e.g.,
laws prohibiting burglary or reckless driving apply on UC
campuses as elsewhere throughout the state); and (3) matters of
statewide concern not involving internal university affairs.
AB 888 (Lieu)
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Certainly what constitutes a "matter of statewide concern" or an
"internal university affair" can be debated. Generally, a bill
needs to be of broad, statewide application to be considered to
be of "statewide concern," so if the scope of a bill is limited
to the UC, it cannot be a matter of "statewide concern." Any
bill that seeks to regulate the academic activities of the UC
(for example, mandating the offering of a particular major at
UC) would probably be an intrusion into an "internal university
affair." However, requiring UC to comply with statewide
building standards that would contribute to the reduction of
greenhouse gas emissions would qualify as a "statewide concern."
State costs associated with compliance of AB 888 are unknown.
Staff notes that there is not sufficient data or consensus on
the costs and benefits of green construction; some studies find
that it is more cost effective to build to green standards, and
others do not. Staff is neither able to estimate how much more
construction of, or renovation to, a state building would cost
if it were built to the specified green standards; nor can staff
estimate how much long term savings could be achieved. Staff
notes, however, that relative costs to renovate a state building
up to the specified standards would be more significant than the
relative costs associated with new construction to the specified
standards.
Staff notes that AB 35 (Ruskin) would create the Sustainable
Buildings Act of 2007 that would require all state buildings to
be built to specified green standards, and AB 1058 (Laird) would
create the Green Building Standards Law that would pertain to
residential buildings; both of these bills are also before the
committee today.
Author's proposed amendments would strike the requirement that
CalEPA coordinate a working group of state agencies, consulting
with specified representatives from the public and interest
groups, to develop by July 1, 2009 a set of minimum green
building standards for commercial buildings of LEED gold rating
level, "or equivalent". The proposed amendments would also
delete the requirement for CalEPA to submit the minimum green
building standards to the California Building Standards
Commission (BSC) for review to ensure that these standards do
not fall short or conflict with existing commercial building
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standards. The proposed amendments would continue to require
new commercial building to meet the LEED gold or equivalent
standard and require that if the state adopts minimum green
standards for commercial building, those standards must be met.
Additionally, nothing in the bill would prohibit, limit, or
supersede more stringent green building requirements applicable
under existing local, state, or federal law.