BILL NUMBER: SB 488 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Pavley
FEBRUARY 26, 2009
An act to amend Section 2079.10 of the Civil Code, and to add
Chapter 10.9 (commencing with Section 25945) to Division 15 of the
Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 488, as introduced, Pavley. Energy: energy efficiency
financing.
(1) Existing law requires the State Energy Resources Conservation
and Development Commission to establish criteria for adopting a
statewide home energy rating program for residential dwellings.
Existing law establishes the Renewable Energy Resources Program that
is administered by the commission to address global warming and
climate change by increasing the amount of electricity generated from
eligible renewable resources. Existing law establishes various
grant, loan, and loan guarantee programs to assist specified entities
in implementing energy conservation and efficiency measures.
This bill would require the commission, by July 1, 2010, in
consultation with specified entities, to establish an ongoing
procedure to develop an energy efficiency financing program to allow
residential, commercial, industrial, and municipal participants to
finance energy efficiency improvements funded through cost avoidance
of the energy saved by the implemented measure. The commission would
be required, beginning July 1, 2011, and annually thereafter, to
submit to the Legislature a report on the progress of the program.
(2) Existing law provides that if an informational booklet
concerning home energy rating is delivered to a transferee of a real
property, the seller or broker is not required to provide information
that is additional to that contained in the booklet.
This bill would provide that a seller or broker is not required to
provide additional information regarding home energy efficiency if
the transferee of a real property has received, as an alternative,
any other information regarding energy efficiency produced by a
utility provider or a public agency.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2079.10 of the Civil Code is amended to read:
2079.10. (a) If the informational booklet published pursuant to
Section 25402.9 of the Public Resources Code, concerning the
statewide home energy rating program adopted pursuant to Section
25942 of the Public Resources Code, or any other information
regarding energy efficiency produced by a utility provider or public
agency, is delivered to a transferee in connection with the
transfer of real property, including, but not limited to, property
specified in Section 1102, manufactured homes as defined in Section
18007 of the Health and Safety Code, and property subject to Chapter
7.5 (commencing with Section 2621) of Division 2 of the Public
Resources Code, the seller or broker is not required to provide
additional information additional to that contained in
the booklet concerning home energy ratings,
efficiency, and the information in the booklet
or produced by a utility provider or public agency shall
be deemed to be adequate to inform the transferee about the
existence of a statewide home energy rating
program. efficiency improvement and conservation
programs.
(b) Notwithstanding subdivision (a), nothing in
this section alters does not alter any
existing duty of the seller or broker under any other law including,
but not limited to, the duties of a seller or broker under this
article, Article 1.5 (commencing with Section 1102) of Chapter 2 of
Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5
(commencing with Section 2621) of Division 2 of the Public Resources
Code, to disclose information concerning the existence of a home
energy rating program affecting the real property.
(c) If the informational booklet or materials described in Section
375.5 of the Water Code concerning water conservation and water
conservation programs are delivered to a transferee in connection
with the transfer of real property, including property described in
subdivision (a), the seller or broker is not required to provide
information concerning water conservation and water conservation
programs that is additional to that contained in the booklet or
materials, and the information in the booklet or materials shall be
deemed to be adequate to inform the transferee about water
conservation and water conservation programs.
SEC. 2. Chapter 10.9 (commencing with Section 25945) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 10.9. ENERGY EFFICIENCY FINANCING PROGRAM
25945. The Legislature finds and declares all of the following:
(a) The Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code)
requires the State Air Resources Board to design emissions reduction
measures in a manner that minimizes costs and maximizes benefits for
California's economy, maximizes additional environmental and economic
cobenefits for California, and complements the state's efforts to
improve air quality.
(b) To achieve the goals of the Global Warming Solutions Act of
2006, every sector must explore opportunities to reduce energy
consumption and related greenhouse gas emissions.
(c) There exist significant opportunities for cost-effective
energy efficiency improvements in all types of existing structures,
including residential, commercial, industrial, and municipal.
(d) California needs a systematic approach to providing every
utility-using structure in the state with an energy audit and
opportunity to increase energy efficiency by 2020, to meet the goals
of the Global Warming Solutions Act of 2006.
(e) Utilities are the most logical industry through which a
comprehensive audit and improvement program should be promulgated.
(f) Removing market barriers such as upfront costs and allowing
utility-administered funding for energy efficiency improvement
financing programs will eliminate key barriers that keep building
owners, renters, lessees, and municipalities from making the energy
efficiency improvements necessary to meet these goals.
25945.5. (a) On or before July 1, 2010, the commission shall
establish an ongoing procedure to develop an energy efficiency
financing program that will allow residential, commercial,
industrial, and municipal participants to finance energy efficiency
improvements funded through cost avoidance of the energy saved by the
implemented measure. The financing shall be fixed to the meter
location to ensure that the beneficiary of the improvement repay the
cost, regardless of ownership or occupancy.
(b) In determining the elements of the energy efficiency financing
program, the commission shall consider all of the following:
(1) The need for expanding existing energy audit programs to
provide appropriate baseline energy information for each meter.
Program expansion may include any of the following:
(A) Expanding existing public goods charge programs.
(B) Utilizing appropriate federal energy efficiency grants and
programs.
(C) Authorizing other sources of program funding.
(2) The appropriate energy efficient measures that provide energy
savings offsetting the cost of the measure within its useful life,
may include all of the following:
(A) Lighting, heating, cooling, and other energy efficient
equipment.
(B) Weatherization.
(C) Distributed generation systems.
(D) Water-saving features and devices.
(3) Utility billing system requirements.
(4) Appropriate monthly charges for each specified measure,
including consideration of the availability of applicable government
run and nongovernmental assistance and loan programs as well as
rebates.
(5) Appropriate program charges.
(6) The expected value of establishing this program, including all
of the following:
(A) Reductions in greenhouse gas emissions.
(B) Reductions in annual and peak energy demands.
(C) Reduction in customer utility bills.
(7) The appropriate methods for informing and educating the public
as to the new program.
(8) Appropriate disclosures and notifications.
(9) Any other considerations deemed appropriate by the Public
Utilities Commission.
(c) Prior to adopting an energy efficiency financing program, the
commission shall do both of the following:
(1) Consult with representatives from the Contractors State
Licensing Board, the Department of Real Estate, the Department of
Housing and Community Development, the Public Utilities Commission,
investor-owned utilities, publicly owned utilities, cities and
counties, real estate licensees, home builders, mortgage lenders,
home appraisers and inspectors, energy efficient product vendors,
home energy rating organizations, consumer groups, environmental and
environmental justice groups.
(2) Hold at least three public hearings in geographically diverse
locations throughout the state.
(d) Beginning July 1, 2011, and annually thereafter, the
commission shall submit a report to the Legislature detailing the
progress of the program, the number of metered users that took
advantage of the financing program, the amount of energy savings
resulting from the implemented measures, and an estimate of the
greenhouse gas reduction resulting from the program. The report may
also contain recommendations for expanding or otherwise improving the
program.