BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 888

                                                                  Page 1


          GOVERNOR'S VETO
          AB 888 (Lieu)
          As Amended September 7, 2007
          2/3 vote

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          |ASSEMBLY:  |43-33|(June 5, 2007)  |SENATE: |21-18|(September 11, |
          |           |     |                |        |     |2007)          |
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          |ASSEMBLY:  |45-32|(September 12,  |        |     |               |
          |           |     |2007)           |        |     |               |
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          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  










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          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.

           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.  










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          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 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,  










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          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.

           GOVERNOR'S VETO MESSAGE:  

               I support the development of green building standards  
               and share the goals of this bill.  However, if  
               implemented [,] provisions in this bill would create  
               a bias for certain building materials over others  
               without a clear benefit.  For instance, the use of  
               California wood building construction materials is  
               highly discouraged in favor of foreign grown bamboo  
               and wheatgrass.

               Additionally, building standards should not be  
               statutory.  The Building Standards Commission was  
               created to ensure an open public adoption process  
               allowing experts to develop standards and periodic  
               updates to the building codes.

               Allowing private entities, such as proposed in this  
               bill, to dictate California's building standards  
               usurps the state's authority to develop and adopt  
               standards and could compromise the health and safety  
               of Californians.  I encourage state agencies to  
               review all nationally recognized programs and glean  
               from those programs, standards that promote greener  
               construction, energy and water conservation, and  










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               reduce Green House Emissions.

               It is imperative to expedite the greening of  
               California's building standards.  As such, I am  
               directing the California Building Standards  
               Commission to work with specified state agencies on  
               the adoption of green building standards for  
               residential, commercial, and public building  
               construction for the 2010 code adoption process.

           
          Analysis Prepared by  :  Elizabeth MacMillan / Nat. Res. / (916)  
          319-2092              


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