BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2679
                                                                  Page  1

          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                      AB 2679 (Eng) - As Amended:  April 8, 2010
           
          SUBJECT  :  Public buildings:  energy and water:  consumption  
          reductions. 

           SUMMARY  :  Requires reductions in energy and water consumption in  
          public buildings, as specified.  

           EXISTING LAW  : 

          1)Authorizes the State Public Works Board to develop energy and  
            water conservation and design efficiency standards for state  
            buildings.

          2)Requires the State Energy Resources Conservation and  
            Development Commission (CEC) to prescribe energy efficiency,  
            including water as it affects energy efficiency, building  
            design and construction standards that increase energy  
            efficiency for new residential and non-residential buildings.

          3)Requires the Air Resources Board (ARB) to adopt a statewide  
            greenhouse gas (GHG) emissions limit equivalent to 1990 levels  
            by 2020 and adopt regulations to achieve maximum  
            technologically feasible and cost-effective GHG emission  
            reductions.

          4) Pursuant to the Governor's Executive Order S-20-04, the Green  
            Building Initiative, ordered the state to take specified  
            actions, including:  a) committing to aggressive action to  
            reduce state building electricity usage by 20 percent in 2015,  
            through cost-effective efficiency measures and distributed  
            generation technologies; and, b) siting, constructing, and  
            operating all new and renovated state-owned facilities as  
            Leadership in Energy and Environmental Design (LEED) Silver or  
            higher certified buildings.

           THIS BILL  :  

          1)Defines terms used in the bill, including:

             a)   "Established baseline measurement" (EBM) as the baseline  








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               measurements of electricity and water consumption from  
               January 1, 2006 to December 31, 2008, including,  
               established by public agencies operating public buildings. 

             b)   "Public buildings" as state, county, city, and city and  
               county buildings funded with money from the General Fund.

             c)   "Retro-commissioning" or "existing building  
               commissioning" as 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 usage.  

          2)Requires all public buildings, including existing 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.

          3)Requires all public buildings to maintain 70% of EBM water  
            consumption after January 1, 2025 and requires all public  
            buildings to maintain zero net energy consumption or grid  
            neutrality after January 1, 2030.  

          4)Requires each public entity operating a public building to  
            determine the EBM.  

          5)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, which:

             a)   Includes a list of recommended retrofits to improve  
               energy efficiency and reduce water consumption and indicate  








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               federal and state grant amounts made available for each  
               eligible upgrade to the facility to carry out these energy  
               and water saving improvements, if applicable; and,

             b)   Is conducted by a private or public entity using  
               methodology and building commissioning guidelines approved  
               by CEC 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)States legislative findings and declarations. 

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)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  








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            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."

           2)California's actions on building energy efficiency  :  The  
            state's Energy Action Plan (prepared by CEC and the Public  
            Utilities Commission) and the Integrated Energy Policy Report  
            (prepared by CEC) encourage the state to meet energy  
            efficiency goals.  These reports also call for the combination  
            of on-site energy generation (such as solar photovoltaics) and  
            energy efficient buildings to reduce overall energy usage so  
            that newly constructed buildings are zero net energy by 2020  
            for the residential sector and by 2030 for the commercial  
            sector. 

          The Climate Action Team's report, Climate Action Team Report to  
            the Governor and the Legislature, identifies strategies to  
            reduce GHG emissions that include continued implementation of  
            the Green Building Initiative and energy efficiency standards  
            for state buildings.  The report indicates that every dollar  
            spent on energy efficiency provides about two dollars in  
            benefits.  The AB 32 Scoping Plan, approved in December 2008,  
            includes zero net energy goals for new and existing homes and  
            commercial buildings.  However, the Plan states that these  
            goals should be "percent of zero net energy" targets.  The  
            Plan also notes that retrofitting existing residential and  
            commercial buildings would achieve substantial GHG emission  
            reductions.  

          The Green Building Initiative, adopted in July of 2004,  
            committed the state to reducing energy usage by constructing,  
            retrofitting, and operating state buildings in an  
            energy-efficient manner.  The Sustainable Building Task Force  
            is a partnership of more than 40 governmental agencies, led by  
            the State and Consumer Services Agency, which is charged with  
            implementing the Green Building Initiative.  

           3)This bill  :  AB 2679 will require stepped progress in energy  
            and water efficiency for public buildings, culminating in net  
            zero energy consumption or grid neutrality and a 30% reduction  
            in water use for all existing and new public building  
            facilities by January 1, 2030.  








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          The Energy Action Plan and the Integrated Policy Report call for  
            zero net energy goals for new buildings.  This bill goes  
            beyond these recommendations to include existing buildings.   
            The feasibility and cost-effectiveness of establishing zero  
            net energy requirements for existing buildings should be  
            examined if this bill moves forward.  

          This bill significantly expands the role of DGS, which is  
            currently only responsible for state buildings, to all  
            publicly owned buildings that receive any funding from the  
            General Fund.  Further, DGS 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 all public buildings.  The author  
            may wish to consider providing DGS with fee authority to  
            recover its cost from local governments for the reporting  
            requirement if this bill moves forward.   

           4)Suggested amendments  :   The   committee may wish to amend the  
            bill  to eliminate the redundancy in the definition of  
            "retro-commissioning" by striking references to "existing  
            building commissioning."  In order to ensure that  
            retro-commissioning occur at least every five-years,  the  
            committee may wish to amend the bill  to replace "or" with  
            "and" on page 5, line 20.  

           5)Double-referred  :  This bill was heard in the Assembly Business  
            and Professions Committee on April 13, 2010 and passed with a  
            vote of 7 to 4. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Environment California

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092