BILL ANALYSIS
AB 212
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Date of Hearing: April 29, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 212 (Saldana) - As Introduced: February 2, 2009
Policy Committee: Natural
ResourcesVote:6-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the California Energy Commission (CEC), in
consultation with the Public Utilities Commission (PUC), the
utilities, and interested parties, to adopt standards
requiring new residential construction to utilize "zero net
energy," effective the latter of January 1, 2020 or the date
on which the commission determines that the use of
photovoltaic technology is cost effective.
2)Defines zero net energy as the combination of energy
efficiency design features and on-site or near-site clean
distributed generation, which results in no net annual
purchases from the electricity grid and the production of
sufficient electricity to offset energy use attributed to
onsite use of purchased natural gas.
FISCAL EFFECT
One-time special fund cost of about $390,000 to the CEC for
three staff to adopt the required standards, including
establishing a means for determining the effective date of the
standards. [Energy Resources Programs Account]
COMMENTS
1)Background . Current law requires the CEC to prescribe
building standards that increase energy efficiency for new
residential and nonresidential buildings. These standards are
updated periodically to incorporate new energy efficiency
AB 212
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technologies and methods. The adopted standards must be
cost-effective when taken in their entirety and when amortized
over the economic life of the structure compared with historic
practice.
2)Purpose . According to the author, 69% of California's
electricity usage and 37% of its overall energy usage are
attributed to residential and commercial buildings. The
author's office indicates that the PUC's Long Term Energy
Efficiency Strategic Plan, the CEC Integrated Energy Policy
Report, and the Air Resources Board's AB 32 Scoping Plan have
all recommended zero net energy buildings for new residential
construction by 2020. AB 212 codifies this goal.
3)Opposition . Southern California Edison (SCE) believes the
bill fails to address actual energy use by customers and
offers no incentives to reduce personal use. SCE notes that a
study done for the Sacramento Municipal Utilities District
estimates a cost of $50,000 to meet a net zero energy mandate
in a 2,500 square foot home. SCE asserts that such added
costs could result in a de facto moratorium on new residential
construction in the short term. Building industry interests
expressed similar concerns in 2008 to two related bills (see
below).
4)Prior Legislation . This bill is substantially similar to AB
2112 (Saldana) of 2008, which was never heard in the Senate
Transportation and Housing Committee.
In 2008, AB 2030 (Lieu), which required the adoption of
building standards for zero net energy buildings constructed
on or after January 1, 2030, was held on this committee's
Suspense file.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081