BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 531
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 531 (Saldana) - As Amended:  April 23, 2009 

          Policy Committee:                               
          UtilitiesVote:15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Requires that an owner or operator of a nonresidential  
            building disclose the United States Environmental Protection  
            Agency's benchmarking data and ratings for the most recent  
            12-month period to a prospective buyer, lessee of the entire  
            building, or lender that would finance the entire building  
            based on a compliance schedule to be established by the  
            California energy Commission (CEC) rather than after January  
            1, 2010 as required by current law. 

          2)Exempts utilities from the prohibition against the disclosure  
            of customer information related to billing, credit, or usage  
            information for the purposes of reporting energy consumption  
            data, to comply with California law requiring benchmarking for  
            non-residential buildings.

           FISCAL EFFECT  

          The CEC would require two positions at a cost of $260,000 to  
          develop the compliance schedule for disclosure of benchmarking  
          data by nonresidential building owners.  Commission staff  
          believe these positions and costs need to be permanent in order  
          to provide oversight of the benchmarking requirements.  These  
          ongoing responsibilities are not specified either in the bill or  
          in current law, however, and therefore should be clarified by  
          subsequent amendments. 

           COMMENTS  









                                                                  AB 531
                                                                  Page  2

           1)Background  .  Benchmarking is a term applied to efforts to  
            track and compare the energy use of commercial buildings by  
            comparing the energy consumption per square foot of floor  
            space.  It is a tool for assessing the relative energy  
            efficiency of buildings to better inform investment decisions  
            made by building operators, owners and prospective owners.

            AB 1103 (Saldana)/Chapter 533 of 2007, required that utilities  
            upload the necessary energy consumption data to create, upon  
            request, an Energy Star Portfolio Manager (ESPM) account-based  
            on a benchmark system developed by the U.S. Environmental  
            Protection Agency-and required that ESPM data and ratings be  
            provided to a prospective buyer, lessee of the entire  
            building, or lender that would finance the building.

           2)Purpose  .  According to the author, this bill is needed in  
            order for utilities to disclose the necessary customer usage  
            data in order to comply with the state's benchmarking law  
            without violating existing utility consumer confidentiality  
            laws. This bill also removes the AB 1103 specific  
            implementation date of January 1, 2010 and instead allows the  
            CEC to develop an implementation schedule in order to ensure  
            that the goals of AB 1103 are met without harming potential  
            building transactions.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081