BILL ANALYSIS
AB 2679
Page 1
Date of Hearing: May 19, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2679 (Eng) - As Amended: April 28, 2010
Policy Committee: Business and
Professions Vote: 7-4
Natural Resources 6-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires specified reductions in energy and water use
over time in state buildings whose operating costs are funded
from the General Fund. Specifically, this bill:
1)Requires that baseline measurements of energy and water
use-constituting consumption levels between January 1, 2006
and December 31, 2008-be established by January 1, 2013.
2)Requires such buildings to meet the following compliance
schedule for reductions in energy and water use from baseline
measurements:
a) By January 1, 2015, energy by 15% and water by 10%.
b) By January 1, 2020, energy by 30% and water by 20%.
c) By January 1, 2025 and thereafter, energy by 60% and
water by 30%.
3)Requires, after January 1, 2030, that newly constructed state
buildings whose operating costs are to be funded by the
General Fund to have net zero energy consumption or be grid
neutral.
4)Requires each state agency operating a building subject to (2)
provide the Department of General Services (DGS) and onsite
assessment, as specified, of the building's energy and water
consumption levels.
5)Requires state agencies to employ "retro-commissioning," as
defined, or continual follow-up and analysis of completed
AB 2679
Page 2
improvements according to the schedule in (2) or whenever
energy or water systems are replaced.
6)Requires DGS to report annually on the progress toward
attaining the required goals.
FISCAL EFFECT
Since the operating costs of most, but not all, state buildings
are funded at least in part from the General Fund, this bill
would cover most state buildings. Examples of excluded buildings
would be those operated by special funded agencies such as
Caltrans, DMV, CHP, and the Employment Development Department.
Thus, state agency buildings encompassed by the bill probably
number around 1,000. Including the University of California and
California State University would add several thousand
additional buildings.
1)One-time costs for the baseline assessments of energy and
water use would be at least in the low tens of millions of
dollars.
2)One-time capital costs to meet the energy and water savings
mandates would be at least in the hundreds of millions, if not
in excess of a billion dollars, over the next 20 years. Some
portion of these costs would be incurred regardless, as many
buildings would undergo renovations during this period that
would incorporate energy and water saving measures. In
addition, the state is likely to continue expanding renewable
energy applications on state buildings and property. For many
older state buildings, however, improvements necessary to meet
the mandated targets would likely be cost prohibitive.
3)DGS would incur additional staff costs of at least $1 million
ongoing to implement and oversee the measures provisions.
4)Significant ongoing savings, increasing over time, in energy
and water service charges for state facilities.
COMMENTS
1)Purpose . 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
AB 2679
Page 3
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."
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.
2)Background . For over 20 years, the state has specifically
funded energy improvements in state facilities, through the
issuance of energy efficiency revenue bonds-for which debt
service payments were made through project energy savings-and
by taking advantage of federal monies provided for this
purpose and program offered by utility companies. A 2004
Executive Order directs state agencies in the Executive Branch
to reduce grid-based energy purchases by 20% by 2015,
consistent with this bill, and to meet other specified
efficiency standards when constructing new and renovated state
buildings.
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.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081