BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1809|
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THIRD READING
Bill No: AB 1809
Author: Smyth (R)
Amended: 6/23/10 in Senate
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 7-0,
6/28/10
AYES: Negrete McLeod, Aanestad, Calderon, Corbett, Correa,
Florez, Yee
NO VOTE RECORDED: Wyland, Walters
ASSEMBLY FLOOR : 73-0, 4/29/10 - See last page for vote
SUBJECT : Home inspections: energy audits
SOURCE : Author
DIGEST : This bill provides that a home inspector may
perform a home inspection that includes a Home Energy
Rating System (HERS) California home energy audit, as
defined in current regulations of the California Energy
Commission (CEC) which implement the California HERS
Program. This bill requires the HERS report which
accompanies any home inspection report to comply with the
standards and requirements established by the CEC pursuant
to regulations adopted to implement the HERS Program.
ANALYSIS :
Existing law, the Business and Professions Code:
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1. Defines a "home inspector" as any individual who
performs a home inspection.
2. Defines a "home inspection" as a noninvasive, physical
examination, performed for a fee in connection with a
transfer of real property, of the mechanical,
electrical, or plumbing systems or the structural and
essential components of a residential dwelling designed
to identify material defects in those systems,
structures and components. "Home inspection" includes
any consultation regarding the property that is
represented to be a home inspection or any confusingly
similar term.
3. Defines a "home inspection report" as a written report
prepared for a fee and issued after a home inspection.
The report clearly describes and identifies the
inspected systems, structures, or components of the
dwelling, any material defects identified, and any
recommendations regarding the conditions observed or
recommendations for evaluation by appropriate persons.
4. Requires a home inspector who is not licensed as a
general contractor, structural pest control operator, or
architect, or registered as an engineer to conduct a
home inspection with the degree of care that a
reasonably prudent home inspector would exercise.
5. Prohibits home inspectors who are not registered
engineers from performing any analysis of the systems,
components, or structural integrity of a dwelling that
would constitute the practice of civil, electrical, or
mechanical engineering.
6. Exempts registered engineers, licensed land surveyors,
or licensed architects acting pursuant to their
professional registration or license from the provisions
governing home inspectors.
7. Provides that it is an unfair business practice for a
home inspector or a company that employs the inspector
to do any of the following:
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A. Perform or offer to perform, for an additional
fee, any repairs to a structure on which the
inspector, or the inspector's company, has prepared a
home inspection report in the past 12 months.
B. Inspect for a fee any property in which the
inspector, or the inspector's company, has any
financial interest or any interest in the transfer of
the property.
C. Offer or deliver any compensation, inducement, or
reward to the owner of the inspected property, the
broker, or agent, for the referral of any business to
the inspector or the inspection company.
D. Accept an engagement to make an inspection or to
prepare a report in which the employment itself or
the fee payable for the inspection is contingent upon
the conclusions in the report, pre-established
findings, or the close of escrow.
E. A home protection company that is affiliated with
or that retains the home inspector does not violate
current law if it performs repairs pursuant to claims
made under the home protection contract.
8. Provides that contractual provisions that purport to
waive the home inspector's duty, or limit the liability
of the home inspector to the cost of the home inspection
report, are contrary to public policy and invalid.
Existing law, the Public Resources Code:
1. Establishes the CEC under the Natural Resources Agency
consisting of five members appointed by the Governor
which was created in 1974 by the Warren-Alquist State
Energy Resources Conservation and Development Act.
2. Provides that the CEC is the state's primary energy
planning and policy agency and has five original
Legislative mandates:
A. Develop and implement California's energy policy.
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B. Forecast future statewide energy needs and
evaluate electricity resource acquisition plans.
C. Site and license thermal power plants of 50
megawatts or larger to meet statewide energy needs.
D. Promote energy efficiency and a wide range of
energy conservation programs and regulations; and
develop renewable energy resources and alternative
energy technologies.
E. Plan for and direct state response to energy
emergencies under the auspices of the CEC.
3. Additionally provides that the CEC is to direct energy
research programs on electricity, natural gas, and
transportation, and to support and fund renewable energy
programs.
4. Requires the CEC, by regulations, to establish criteria
for adopting a statewide home energy rating program for
residential dwellings and specifies what the program
criteria shall include.
5. Specifies pursuant to regulations adopted by CEC on
December 17, 2008, and published on August 3, 2009, the
standards and requirements of the HERS Program to
provide energy efficiency ratings for existing and newly
constructed residential buildings that include single
family homes and multi-family building or three stories
or less.
6. Provides that the CEC shall approve HERS Providers who
shall administer a home energy rating system in
compliance with the regulations.
7. Provides that a "California Whole-House Home Energy
Rater" is a person who has been trained, tested, and
certified by a Provider to properly gather information
on the energy consuming features of a home, perform
diagnostic testing at the home, evaluate the validity of
that information, and perform other functions as
specified.
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8. Provides that a "California Home Energy Inspector" is a
home inspector who has been trained, tested, and
certified by a Provider, as specified, and who works
under the direct supervision of a "California
Whole-House Energy Rater," as defined.
9. Provides that a "California Home Energy Audit" means a
process to determine the energy savings and
cost-effectiveness of specific measures together with an
evaluation of the energy uses listed in regulations and
a report to present the information used to evaluate the
measures and make recommendations for the inclusion of
such measures into the home.
This bill:
1. Provides that all home inspections, as defined, may, if
requested by the client, to be accompanied by a HERS
California home energy audit pursuant to regulations
adopted by the CEC in compliance with current law.
2. Specifies that if the client requests a HERS California
home energy audit, that the HERS California home
inspection report accompanying any home inspection
report, as defined, shall comply with the standards and
requirements established by the CEC for HERS energy
audits as specified in regulations of the CEC.
3. Provides that it is the intent of the Legislature that a
HERS California home energy audit may, at the request of
the client, be performed during escrow by a home
inspector who meets the requirements of the regulations
of the CEC.
Background
The CEC established regulations on December 17, 2008 to
implement the HERS Program to certify home energy rating
services in California. The Program provides standards to
measure energy efficiency levels among California homes and
to guide investments in cost-effective home energy
efficiency measures. The regulations also specify the
requirements for Providers (organizations) who shall
administer a home energy rating system in compliance with
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the regulations and provides that a "California Whole-House
Home Energy Rater" is a person who has been trained,
tested, and certified by a Provider to properly gather
information on the energy consuming features of a home,
perform diagnostic testing at the home, evaluate the
validity of that information, and perform other functions
as specified. The regulations further provide that a
"California Home Energy Inspector" is a home inspector who
has been trained, tested, and certified by a Provider, as
specified, and who works under the direct supervision of a
"California Whole-House Energy Rater."
The HERS rating system, known as the HERS Index, was
established by the Residential Energy Services Network
(RESNET), a nonprofit membership organization. The HERS
Index scores a home out of 100 points; the lower the home's
score, the more energy efficient it is.
Currently, there are 42 HERS certified inspectors and three
CEC-Approved HERS Provider organizations that certify HERS
inspectors in California. To become a HERS-certified
inspector an individual must complete RESNET-accredited
training, receive certification from RESNET rating
provider, and pass an examination.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/29/10)
American Home Inspection Association (source)
California Building Industry
California Business Properties
California State Association of Electrical Workers
California State Pipe Trades Association
National Association of Home Inspectors, Inc.
Western States Council of Sheet Metal Workers
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
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DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Knight, Lieu, Logue, Ma,
Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Smyth, Solorio, Audra Strickland,
Swanson, Torlakson, Torres, Tran, Villines, Yamada, John
A. Perez
NO VOTE RECORDED: Bass, Caballero, Jones, Bonnie
Lowenthal, Skinner, Torrico, Vacancy
JJA:mw 6/29/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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