BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 888
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 888 (Lieu)
          As Amended September 7, 2007
          Majority vote

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          |ASSEMBLY:  |43-33|(June 5, 2007)  |SENATE: |     |(September 11, |
          |           |     |                |        |     |2007)          |
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                                                  (vote not available)
          Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Requires new commercial buildings for which a public  
          agency deems the application for a development project complete on  
          or after January 1, 2013, and that are 50,000 feet or greater be  
          designed constructed and operated to meet the applicable standards  
          described in the United States Green Building Council's Leadership  
          in Energy and Environmental Design gold rating or its equivalent,  
          unless the state adopts specified minimum green building, in which  
          case those commercial buildings will be required to meet the  
          adopted standards. 

           The Senate amendments  make technical changes to the process used  
          to assure that commercial buildings meet green building standards.  
           The amendments: 

          Replace the requirement for the California Environmental  
          Protection Agency to establish standards for sustainable  
          commercial buildings with direction to ensure that commercial  
          buildings are built to green standards as prescribed.

          Extend the implementation date from July 1, 2012 to January 1,  
          2013.

          State that, for purposes of compliance related to the use of wood  
          products, projects that use wood products with a credible  
          sustainable forest certification are deemed to be in compliance.

          Stipulate that the provisions of this bill shall not prohibit,  
          limit, or supersede other green building standards developed  
          pursuant to existing authority. 

          Remove portions of the legislative intent language.

          Make other technical, conforming changes.








                                                                  AB 888
                                                                  Page 2

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to  
          the version of the bill passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations Committee,  
          general fund costs, in excess of $150,000 if the state adopts  
          specified green building standards. Increase in construction costs  
          offset by unknown, potential, building operational savings in out  
          years.

           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." 
          According to supporters, "Buildings account for almost 40 percent  
          of all carbon dioxide emitted in the U.S., more than any other  
          sector. In fact, according to a United Nations study,  
          implementation of green building standards could do more to reduce  
          greenhouse gas emissions than all the actions agreed to under the  
          Kyoto Protocol. The enactment of AB 32 requires the state to take  
          early action to reduce greenhouse gas emissions in the largest  
          mission sectors." Supporters also note that "there is no  
          appreciable difference in the construction costs of LEED-compliant  
          buildings, and any additional up-front costs are paid back many  
          times over in reduced costs of energy and other resources.  

          The California Integrated Waste Management Board'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  







                                                                  AB 888
                                                                  Page 3

          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. 

          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 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 include continued implementation of  
          the Green Building Initiative and energy efficiency standards for  
          state buildings.
           
          Analysis Prepared by  :  Caroll Mortensen / E.S & T.M. / (916)  
          319-3965                FN: 0003458