BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1130|
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THIRD READING
Bill No: SB 1130
Author: De León (D), et al.
Amended: 4/19/12
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 13-0, 4/24/12
AYES: Padilla, Fuller, Berryhill, Corbett, De León,
DeSaulnier, Emmerson, Kehoe, Pavley, Rubio, Simitian,
Strickland, Wright
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Energy: energy assessment: commercial
buildings:
retrofitting
SOURCE : Author
DIGEST : This bill requires the California Energy
Commission (CEC), on or before January 1, 2016, to analyze
and evaluate standards for commercial energy building
retrofits previously developed by various national and
international organizations to provide uniformity and
transparency for financial institutions evaluating loan
proposals for energy improvements to commercial properties.
ANALYSIS : Existing law requires the CEC to adopt and
update every three years energy efficiency building
regulations that specify requirements relating to lighting,
insulation, windows, heating, ventilation and air
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conditioning (HVAC) systems, and other construction details
designed to reduce energy consumption and lower energy
bills for consumers.
Existing law requires the CEC to develop a comprehensive
energy efficiency strategy for residential and commercial
buildings constructed prior to adoption of state building
standards.
Existing law requires the Public Utilities Commission (PUC)
to investigate the ability of electric utilities to provide
energy efficiency financing options to customers to
implement the CEC's strategy for building retrofits.
Existing law authorizes local governments to implement a
Property Assessed Clean Energy (PACE) program and
authorizes them to issue bonds secured by voluntary
contractual assessments on property to finance the
installation of distributed generation renewable energy
sources, electric vehicle charging infrastructure, or
energy or water efficiency improvements.
This bill provides that the evaluation required by this
bill shall evaluate existing protocols or combination of
elements of existing measurement protocols and shall be
made available in an electronic format to financial
institutions and local governments initiating PACE bonds.
Background
Energy efficiency is California's top strategy for reducing
energy use and meeting the state's energy needs. Energy
efficiency is at the top of the "loading order," and
California's utilities are required to first meet their
energy needs through cost-effective energy efficiency
measures before renewable and conventional generation. The
state's investor owned utilities (IOUs) and, to a lesser
extent, the publicly owned utilities (POUs), administer
hundreds of energy efficiency programs that provide
financial incentives and rebates for installing energy
efficient appliances, lighting, windows, HVAC systems and
other technologies or measures.
As reviewed in an informational hearing of the Senate
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Energy, Utilities and Communications Committee on May 17,
2011, California has made substantial investment in a
multitude of energy efficiency programs financed with
ratepayer and taxpayer dollars, including:
$1 billion per year from IOU ratepayers for programs
approved by the PUC, with about 29 percent for commercial
buildings.
$300 million per year from IOU ratepayers for free
weatherization services for IOU low-income customers
approved by the PUC.
$30 million per year in federal funding for free
weatherization services for low-income residents
administered by the Department of Community Services and
Development (CSD).
$185 million in one-time funding for free weatherization
services for low-income residents from the American
Recovery and Reinvestment and Act of 2009 (ARRA)
administered by CSD.
$280 million in one-time ARRA funds for energy efficiency
programs administered or coordinated by the CEC.
In addition, the California Alternative Energy and Advanced
Transportation Financing Authority within the State
Treasurer's Office is implementing a loan program for
financing energy efficiency upgrades and other clean energy
investments with $25 million in ratepayer funds.
Focus on Buildings . California's Title 24 energy
efficiency building regulations, first adopted by the CEC
in 1978 and updated every three years, specify requirements
relating to lighting, insulation, windows, HVAC systems,
and other construction details designed to reduce energy
consumption and lower energy bills for consumers. The
state's Title 20 energy efficiency appliance regulations
specify energy use standards for most major household and
commercial appliances that must be met in order to be sold
in California. There is general agreement that these
building and appliance standards have been a major
contributor to the state making progress toward achieving
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energy efficiency goals. An update of the standards is in
progress.
AB 758 (Skinner), Chapter 470, Statutes of 2009, responded
to the fact that about 60 percent of California's
residential and nonresidential buildings were built prior
to adoption of the building standards. AB 758 requires the
CEC to develop a comprehensive energy efficiency strategy
for this old building stock, both residential and
nonresidential. To date, the CEC has used ARRA funds for
some pilot programs to develop and advance the tools,
protocols and workforce to conduct best practice building
energy assessments and retrofits, which the CEC says will
generate information for developing the long-term strategy.
As required by AB 758, the PUC has opened a rulemaking to
investigate the ability of IOUs to provide energy
efficiency financing options to customers to implement the
CEC's strategy for building retrofits and is considering
financing as part of its proceedings governing the IOU
energy efficiency portfolios.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/15/12)
State Controller John Chiang
Building Owners and Managers Association
California Business Properties Association
California Energy Efficiency Council
California Pipe Trades Council
California State Association of Electrical Workers
Commercial Real Estate Development Association
Flex Energy (if amended)
International Council of Shopping Centers
PG&E (if amended)
Sempra (if amended)
SoCal Edison
Western State Council of Sheet Metal Workers
OPPOSITION : (Verified 5/12/12)
California Association of County Treasurers and Tax
Collectors (unless amended)
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RM:do 5/16/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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