BILL ANALYSIS
AB 2679
Page 1
Date of Hearing: April 13, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2679 (Eng) - As Amended: April 8, 2010
SUBJECT : Energy and water: consumption reductions.
SUMMARY : Requires reduction in energy and water consumption in
public buildings, as specified. Specifically, this bill :
1)Requires all public buildings to conform to the following
compliance schedule:
a) By January 1, 2015, reduce energy consumption from EBM
by 15%, and water consumption by 10%;
b) By January 1, 2020, reduce energy consumption from EBM
by 30%, and water consumption by 20%;
c) By January 1, 2025, reduce energy consumption from EBM
by 60%, and water consumption by 30%; and,
d) By January 1, 2030 and thereafter, all existing and new
public building facilities shall have net zero energy
consumption or be grid neutral.
2)Requires all public buildings to maintain 70% of EBM water
consumption after January 1, 2025.
3)Requires each public entity operating a public building to
establish EBM.
4)Requires each public entity operating a public building to
provide the Department of General Services (DGS) with a
certified onsite assessment of the facility's energy and water
consumption levels by January 1, 2013, which shall include,
but not be limited to, a customized written report.
5)Requires the customized written report to:
a) Include a list of recommended retrofits to improve
energy efficiency and reduce water consumption and indicate
federal and state grant amounts made available for each
AB 2679
Page 2
eligible upgrade to the facility to carry out these energy
and water saving improvements, if applicable; and,
b) Be conducted by a private or public entity using
methodology and building commissioning guidelines approved
by the State Energy Resources Conservation and Development
Commission and the Department of Water Resources.
6)Requires all applicable public entities to:
a) Adopt and implement processes outlined in the Green
Building Action Plan, as specified, and to include
additional processes for the achievement of reduced water
reduction and energy consumption; and,
b) Adopt processes that are consistent with energy
efficiency measures outlined in statutes, regulations, and
agency guidelines.
7)Requires each public entity operating a public building to
employ retro-commissioning, existing building commissioning,
or continual follow-up and analysis of completed improvements
according to the schedule, as specified, or whenever major
energy or water consuming systems or controls are replaced.
8)Requires that project financing maximize the use of outside
financing, including, but not limited to, existing loan,
lease, energy efficiency, and retirement investment programs.
9)Requires DGS to annually report to the Legislature and the
Governor on the progress of reducing energy consumption and
water use in public buildings, and recommend any changes to
meet these goals.
10)Defines the following terms:
a) "Established baseline measurements" (EBM) means the
baseline measurements of electricity and water consumption
levels from January 1, 2006 to December 31, 2008,
inclusive, established by public agencies operating public
buildings, as specified;
b) "Public buildings" means state, county, city, and city
and county public buildings funded with money from the
General Fund;
AB 2679
Page 3
c) "Public entity" means a state, county, city, or city and
county public entity that operates a public building; and,
d) "Retro-commissioning" or "existing building
commissioning" means the systematic, documented process
that identifies low-cost operational and maintenance
improvements in existing buildings and conforms the
buildings to the design intentions of its current users.
11)Makes legislative findings and declarations.
EXISTING LAW :
1)Delcares that electrical and natural gas utilities should have
as a principal goal the minimization of the cost to society of
reliable energy services, environment improvement, and
encouragement of energy source diversity. The Warren-Alquist
State Energy Resources Conservation Development Act also
declares that those utilities should seek to exploit all
practicable and cost-effective conservation and improvements
in the efficiency of energy use and distribution that offer
equivalent or better system of reliability.
2)Authorizes any specified public entity to adopt and enforce a
water conservation program to reduce the quantity of water
used by specified persons for the purpose of conserving the
water supplies of the public entity.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "It is
essential that California avoid the unmanageable and manage the
unavoidable in resource management, energy, and water
consumption. This provides fiscal responsibility, which during
the transition to zero net energy creates economic stimulus
through the sales of goods and job creation. This legislation
also preserves our most vital public resources, the workforce
that serves Californians in a wide variety of capacity;
teachers, public safety, nursing, prison personnel, Department
of Motor Vehicles and all public service positions that assist
in the operations of our state infrastructure."
AB 2679
Page 4
Background . For the past 10 years, California officials have
encouraged public sector facilities to reduce their
environmental impact through various statues, guidelines,
executive orders, and regulations.
Executive Order S-20-04, requires reduced energy use in
State-owned facilities. It also directed the Division of the
State Architect to encourage schools being built with State
funds to be resource and energy efficient.
The California Public Utilities Commission (CPUC) adopted
California's first Long Term Energy Efficiency Strategic Plan
(Plan) on September 18th, 2008, as a single roadmap to achieve
maximum energy savings across all major groups and sectors in
California. This comprehensive Plan for 2009 to 2020 is the
state's first integrated framework of goals and strategies for
saving energy, covering government, utility and private sector
actions. The Plan holds energy efficiency as its highest
priority in meeting California's energy needs.
The Plan advances a framework that incorporates energy
efficiency standards for utilities, businesses, and consumers.
It includes four "Big Bold strategies" for significant
energy-savings:
1)All new residential construction in California will consume
zero net energy by 2020;
2)All new commercial construction in California will consume
zero net energy by 2030;
3)The Heating, Ventilation, and Air Conditioning (HVAC) industry
will be reshaped to ensure optimal equipment performance; and,
4)All eligible low-income homes will be energy-efficient by
2020.
SBX7 7 (Steinberg), Chapter 4, Statutes of 2009, requires the
state to achieve a 20% reduction in urban per capita water use
by December 31, 2020. SB X7 7 also requires the state to make
incremental progress towards this goal by reducing per capita
water use by at least 10% by December 31, 2015.
This bill, AB 2679, will require stepped progress in energy and
water efficiency for public buildings, culminating in net zero
AB 2679
Page 5
energy consumption or grid neutrality and a 30% reduction in
water use for all existing and new public building facilities by
January 1, 2030. While laudable, the implementation schedule
appears contrary to existing guidelines and is not supported by
any available feasibility studies.
This bill also significantly expands DGS' role, which is
currently responsible only for state buildings -- not county,
city, or city and county public buildings. Local government
buildings are managed and controlled by local governments. If
any local structures derive their funding in whole or part from
the General Fund and are required to report to the State, this
would usurp local control and governance. Further, DGS is a
performance-based budgeting department that is funded from fees
collected from state entities for which it provides services.
This bill requires DGS to annually report on the progress of
energy reduction and water use in public buildings and recommend
changes. Were this bill enacted, DGS would require fee
authority to recover its cost from local governments for the
reporting requirement, which would presumably require inspection
and analysis expenses.
Previous legislation . SB X7 7 (Steinberg), Chapter 4, Statutes
of 2009, requires the state to achieve a 20% reduction in urban
per capita water use by December 31, 2020. This bill also
requires the state to make incremental progress towards this
goal by reducing per capita water use by at least 10% by
December 31, 2015.
AB 2021 (Levine), Chapter 734, Statutes of 2006, requires all
electric and natural gas utilities to meet energy efficiency
savings targets established by the California Energy Commission
and the CPUC.
Double-referred . This bill is double-referred to Assembly
Natural Resources Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
AB 2679
Page 6
None on file.
Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916)
319-3301