BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1627
                                                                  Page  1

             Date of Hearing:   April 17, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                  AB 1627 (Dickinson) - As Amended:  April 10, 2012
           
          SUBJECT  :   Energy: vehicle miles traveled. 

           SUMMARY  :   Requires the Office of Planning and Research (OPR), 
          by January 1, 2014, to prepare a manual for local governments, 
          local agencies, and project developers to use to reduce vehicle 
          miles traveled (VMT) in new residential and commercial building 
          projects.  Specifically,  this bill  :  

          1)Requires OPR, by January 1, 2014, to prepare a manual for 
            local governments, local agencies, and project developers to 
            use to reduce VMT in new residential and commercial building 
            projects.  

          2)Requires OPR, when preparing the manual to identify and 
            evaluate, at a minimum, the following: 

             a)   Existing measures and strategies for reducing VMT by 
               occupants or users of new residential and commercial 
               building projects; 

             b)   Existing means by which projected and actual VMT 
               reductions from specific measures and the efficacy of 
               measures may be determined; 

             c)   Further research needed to improve the measurement and 
               evaluation of VMT reductions; and, 

             d)   Costs associated with implementing VMT reduction 
               measures and strategies. 

          3)Requires OPR to make recommendations to the Legislature and 
            local policymakers, as appropriate, of measures to improve the 
            reduction of VMT traveled related to residential and 
            commercial building projects. 

          4)Makes legislative findings and declarations related to the 
            reduction of VMT traveled and greenhouse gas (GhG) emissions. 









                                                                  AB 1627
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           EXISTING LAW  : 

          1)Establishes the Air Resources Board (ARB) within the 
            California Environmental Protection Agency (Cal/EPA) to 
            oversee all air pollution control efforts to attain and 
            maintain health-based air quality standards in California, in 
            partnership with local air districts.

          2)Requires the California Building Standards Commission (BSC) to 
            review the standards of adopting agencies in order to approve, 
            return for amendment with recommended changes, or reject 
            building standards or administrative regulations that apply 
            directly to the implementation or enforcement of building 
            standards submitted to BSC for approval.  When building 
            standards are returned for amendment or rejected within 120 
            days, BSC shall inform the adopting agency of the specific 
            reasons for the recommended changes or rejection, as 
            specified.

          3)Authorizes any person adversely affected by any regulation, 
            rule, omission, interpretation, decision, or practice of any 
            state agency respecting in the administration of any building 
            standard to appeal the issue for resolution to the BSC.  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, 
          "Reliance upon the automobile for access is substantially the 
          result of more than a half century of decentralized urban 
          development, which in many instances, has left households with 
          limited alternatives to the single occupant vehicle to satisfy 
          their everyday mobility needs.  While significant strides are 
          now being made to reduce VMT through more coordinated regional 
          planning efforts such as general plan updating and regional 
          transportation plans, as called for in recently enacted 
          legislation, a great deal more can be done to augment these 
          efforts at the project level.  Reducing VMT is critical to 
          safeguarding California's environment, economic prosperity, and 
          the health and safety of its citizens.  However, converting 
          local and regional plans to reduce VMT into enforceable action 
          remains a challenge."

           Background  .   This bill requires OPR, by January 1, 2014, to 








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          prepare and make available a manual designed to be used by local 
          governments, local agencies, and project developers to reduce 
          VMT in new residential and commercial building projects.  
          Existing law already requires ARB to work with state and local 
          entities to develop GhG reduction targets in transportation 
          plans.  In 2006, the Legislature enacted the Global Warming Act 
          of 2006 �AB 32 (Nu�ez), Chapter 488, Statutes of 2006], which 
          required ARB to establish a statewide GhG emissions limit and 
          reduce GhG emissions to 1990 levels.  In addition, SB 375 
          (Steinberg), Chapter 728, Statutes of 2008, required ARB, by 
          September 30, 2010, to provide each region that has a 
          metropolitan planning organization (MPO) with GhG emission 
          reduction targets for the automobile and light truck sector for 
          2020 and 2035, respectively.  SB 375 further required ARB, after 
          exchanging technical information with the California Department 
          of Transportation (Caltrans), MPOs, local governments, and 
          affected air districts, and engaging in a consultative process 
          with stakeholders, to update the regional GhG reduction targets 
          every eight years consistent with each MPO's timeframe for 
          updating its regional transportation plan under federal law, 
          until 2050. 

          It appears this bill duplicates ARB's authority within the OPR.  
          ARB is a department within Cal/EPA charged with overseeing all 
          air pollution control efforts to attain and maintain 
          health-based air quality standards in California in partnership 
          with local air districts.  ARB has already set GhG targets in 
          accordance with SB 375. 

          This bill expressly requires OPR to prepare a manual designed to 
          be used by local governments, local agencies, and project 
          developers, and to make recommendations to the Legislature and 
          local policymakers, to reduce VMT related to residential and 
          commercial building projects, which may impede the Department of 
          Housing and Community Development (HCD) and BSC's regulatory 
          authority. 

          BSC is responsible for the administration of State Building 
          Standards Code (Code), also known as the California Code of 
          Regulations (CCR), Title 24, which includes the adoption, 
          approval, publication, and implementation of codes and 
          standards.  Current law allows state agencies to make regulatory 
          changes to the Code.

          The previous version of this bill, as introduced on February 9, 








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          2012, would have authorized the California Energy Commission 
          (CEC) to create building standards to reduce the number of VMT 
          by publishing them in their energy manual instead of adopting 
          them and submitting them for approval to the BSC.  According to 
          a 1992 Attorney General (AG) opinion, "The �CEC] energy manual 
          may be viewed as setting forth interpretations, decisions, and 
          practices of the �CEC] which concern the administration of 
          building standards.  To the extent that these interpretations, 
          decisions, and practices are themselves building standards which 
          have not been approved by the BSC, they have 'no force and 
          effect' (Public Resources Code Section 25216.4) and may be so 
          found by the BSC upon successful challenge by a person who is 
          adversely affected." 

          BSC took an oppose position to the February 9, 2012 version of 
          this bill.  In a letter dated April 9, 2012, BSC wrote that AB 
          1627 "could possibly compromise the existing authority of the 
          ARB, CalTrans, and other state agencies required to advance the 
          goals of AB 32; could result in an unreasonable increase in the 
          costs of building and infrastructure; and, contains some 
          confusion of terms by having CEC develop standards for VMT 
          traveled, not guidelines, for publication only in a guidance 
          document."  In light of the April 10, 2012, amendments to this 
          bill, BSC is currently reevaluating its position.  
           
          The current version of this bill still requires OPR to develop a 
          manual to identify and evaluate VMT reduction strategies and 
          make recommendations to the Legislature, although it does not 
          expressly direct CEC to create building standards to reduce VMT. 
           
          
           Support  .  According to the sponsor, Planning and Conservation 
          League, "The tools currently available to measure VMT are 
          significantly more accurate than those available for energy when 
          state regulation of energy began in 1979.  We would expect that 
          the standards and measurements of VMT will grow in 
          sophistication over time similar to energy standards.  VMT is, 
          of course, influenced by many lifestyle factors as well, such as 
          travel distance to a job, where children go to school, etc.  The 
          point of this bill, like most regulatory metrics, is to work 
          with probabilities and averages.  It does not regulate how much 
          people do drive, but how much they will need to drive on 
          average.

          "VMT is an important measure of the livability of our 








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          neighborhoods in itself.  More importantly, it is a viable 
          metric for many other parameters of livability and equity, 
          economic, and environmental quality, such as:  reducing GhG 
          emission; improving air quality for local communities; improving 
          the health of California's beaches, bays and inland waterways 
          (which are impacted by runoff from large urban footprints and 
          larger pavement areas); promoting pedestrian and bicycle safety; 
          reducing car accidents and resulting injuries and deaths; 
          fostering improved community health by promoting active 
          transportation; reducing the cost of transportation, which can 
          be volatile for households and businesses; promoting greater 
          social equity by providing all communities with access to jobs 
          and essential services without the need for expensive 
          transportation options like automobiles; and, reducing local 
          government capital and operational costs for infrastructure, 
          maintenance, and service delivery." 

          
           Opposition  .  According to the California Building Industry 
          Association, "The 'manual' required in AB 1627 would, by its 
          very nature, have to address and reference micro-level building 
          codes and standards.  We know this because this bill tells us 
          so.  In the findings and declarations, references are made to SB 
          375.  That landmark bill directs localities at the regional 
          level to develop land use strategies in conjunction with a 
          regional transportation plan to reduce GhG emissions from 
          vehicular travel.  AB 1627 goes significantly beyond the 
          dictates of SB 375 by declaring that "it is in the interest of 
          the state to augment these efforts and achieve further VMT 
          reductions by the adoption of measures applied to individual 
          residential and commercial buildings and projects."

          "Directing OPR to prepare and make available a building standard 
          manual applicable to residential and commercial buildings is a 
          clear circumvention of the traditional code adoption process in 
          effect in California for the past 34 years.  HCD develops 
          building standards - including green building standards - 
          applicable to residential construction and the state BSC 
          develops them for commercial buildings. 
          
          "AG Opinion 91-1203 (1992) makes it clear that any and all 
          building standards appearing in 'manuals' must first be 
          developed in the appropriate manner and adopted by the BSC.  
          This includes both mandatory and voluntary standards as state 
          statute recognizes no distinction between the two. 








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          "The objective of SB 375 is to enact a regional planning process 
          aimed at achieving GhG emissions expressed as 'targets' 
          established by ARB.  AB 1627 on the other hand has nothing to do 
          with environmental protection or emissions reductions.  It is 
          aimed at micro-managing individual driving behavior through 
          building codes and specific measures applied at the project 
          level.  Tellingly, AB 1627 even acknowledges that the capacity 
          of those measures to produce the desired effect is in doubt and 
          that further research is needed."

           Previous Legislation  .  SB 375 (Steinberg), Chapter 728, Statutes 
          of 2008, required ARB, by September 30, 2010, to provide each 
          region that has a MPO with GhG emission reduction targets for 
          the automobile and light truck sector for 2020 and 2035, 
          respectively.  This bill required ARB, after exchanging 
          technical information with Caltrans, MPOs, local governments, 
          and affected air districts, and engaging in a consultative 
          process with stakeholders, to update the regional GhG reduction 
          targets every eight years consistent with each MPO's timeframe 
          for updating its regional transportation plan under federal law, 
          until 2050.

          AB 32 (Nu�ez), Chapter 488, Statutes of 2006, established the 
          Global Warming Act of 2006, which required ARB to establish a 
          statewide GhG emissions limit and to reduce GhG emissions to 
          1990 levels.  

           Double-referred  .  This bill is double-referred to Assembly 
          Natural Resources Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          The Planning and Conservation League (sponsor)

           Opposition 
           
          Associated Builders and Contractors of California (ABC) 
          Associated General Contractors (AGC) 
          Alliance of Automobile Manufacturers 
          American Council of Engineering Companies (ACEC) 








                                                                  AB 1627
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          Building Owners and Managers Association of California (BOMA) 
          California Apartment Association (CAA) 
          California Association of Bed and Breakfast Inns (CABBI)
          California Building Industry Association (CBIA) 
          California Building Officials 
          California Business Properties Association (CBPA) 
          California Chamber of Commerce (CalChamber) 
          California Chapter of American Fence Association 
          California Farm Bureau Federation (CFBF) 
          California Fence Contractors' Association (CFCA) 
          California Grocers Association
          California Hotel & Lodging Association (CH&LA) 
          California Independent Oil Marketers Association (CIOMA) 
          California Manufacturers and Technology Association (CM&TA) 
          California New Car Dealers Association (CNCDA) 
          California Professional Association of Specialty Contractors 
          (CALPASC)
          California Poultry Association 
          California Retailers Association (CRA) 
          Civil Justice Association of California (CJAC) 
          Engineering Contractors' Association 
          Flasher Barricade Association 
          Golden State Builders Exchanges (GSBE) 
          International Council of Shopping Centers (ICSC) 
          League of California Cities
          Lumber Association of California and Nevada (LACN) 
          Marin Builders Association 
          NAIOP of California, the Commercial Real Estate Development 
          Association 
          National Federation of Independent Business (NFIB) 
          Neighbor Market Association 
          Orange County Business Council (OCBC) 
          San Diego County Apartment Association 
          United Contractors
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301