Amended in Assembly March 26, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1918

Introduced by Assembly Member Williams

February 19, 2014

An act to add Section begin delete 7110.05 to the Business and Professions end delete begin insert 25402.12 to the Public Resources end insert Code, and to add Section 381.3 to the Public Utilities Code, relating to begin delete air conditioner systems. end delete begin insert central heating and air cooling equipment. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1918, as amended, Williams. begin delete Air conditioner systems. end delete begin insert Central heating and air cooling equipment. end insert

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Existing law, the Contractors’ State License Law, provides for the licensing and regulation of contractors by the Contractors’ State License Board in the Department of Consumer Affairs. Under existing law, a willful or deliberate disregard by a licensed contractor of various state building, labor, and safety laws constitutes a cause for disciplinary action.

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This bill would require the board to develop a system to track air conditioner appliance sales and installations and to ensure that air conditioner appliance systems are installed according to applicable building codes and with the necessary permits.

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Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, building design and construction standards and energy and water conservation design standards for new residential and nonresidential buildings. Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, standards for minimum levels of operating efficiency to promote the use of energy and water efficient appliances whose use requires a significant amount of energy or water on a statewide basis. Existing law requires that the minimum levels of operating efficiency be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. Existing law prohibits a new appliance manufactured on or after the effective date of the standards to be sold or offered for sale in the state unless it is certified by the manufacturer to be in compliance with the standards.

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This bill would require the State Energy Resources Conservation and Development Commission to develop a system to track central heating and air cooling equipment sales and installations in the state.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, as defined.

This bill would require the begin delete commission to open a new proceeding or expand the scope of end delete begin insert commission, in end insert an existing proceeding begin insert , end insert to establish, by January 1, 2016, an incentive program for contractors and local governments to improve the verification of building code compliance and acceptance of begin delete air conditioner appliance systems end delete begin insert central heating and air cooling equipment end insert following installation.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 7110.05 is added to the Business and
Professions Code, to read:

7110.05.  

The board shall, pursuant to Section 7110, develop
a system to track air conditioner appliance sales and installations
in the state and to ensure that air conditioner appliance systems
are installed according to applicable building codes and with the
necessary permits.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares all of the
following: end insert

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(a) California’s building energy efficiency standards are
recognized as leading the nation in energy savings. They are an
important component of the state’s programs to manage its energy
consumption, conserve natural resources, and improve the quality
of life for all its citizens.

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(b) Heating and cooling buildings is one of the largest electricity
end uses in the state and is also the single largest contributor to
peak electricity demand, comprising up to 30 percent of total
demand in the hot summer months.

end insert begin insert

(c) In the 2008 Strategic Plan to Reduce the Energy Impact of
Air Conditioners, the State Energy Resources Conservation and
Development Commission identified that a heating, ventilation,
and air conditioning system (HVAC) can increase energy use by
20 or 30 percent if it is poorly installed regardless of its efficiency
rating.

end insert begin insert

(d) Permits are required for the replacement of heating and
cooling equipment and a code official must verify installation in
compliance with the building energy efficiency standards. The
effectiveness of the building energy efficiency standards is
dependent upon the conscientious efforts of licensed contractors
in California to follow these permitting requirements to build
buildings and install components and equipment in compliance
with the standards which deliver cost-effective energy savings to
consumers.

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(e) However, the State Energy Resources Conservation and
Development Commission estimates that less than 10 percent of
replacement HVAC work is performed with the proper building
permits. This underground activity denies state and local
governments license and building permit revenue and diminishes
the ability of state and local agencies to provide enforcement
services intended to protect consumers. These practices
particularly damage and diminish the potential for conscientious
compliance with the building energy efficiency standards, as these
illegal installations undermine those who attempt to comply with
the law by following the permitting requirements.

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(f) These violations result in a substantial financial loss to
consumers who purchase energy efficiency goods and services,
and represent unfair competition that dramatically impacts the
economic viability of legitimate businesses. It is critical for
California to maintain a business climate favorable to legitimate
competition, so that conscientious contractors, manufacturers,
distributors, retailers, home energy rating system raters, and other
businesses are able to sustain their businesses against unfair
competition.

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(g) California building codes are updated regularly,
necessitating more training and education for building officials
performing permitting, plan checking, and inspections. Providing
this education in tandem with incentives for beyond-code
performance will motivate both local building departments and
contractors to prioritize energy efficiency performance in their
day-to-day operations.

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(h) In an effort to increase permitted activity, some local
jurisdictions have adopted practices that make it easier to obtain
permits or have implemented pilot programs to educate and train
local building staff. It is in California’s best interest to facilitate
the adoption of demonstrated best practices for local building
departments across the state to undertake to maximize compliance
with building codes.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25402.12 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 25402.12. end insert   

The commission, in consultation with the
Contractors’ State License Board, local building officials, and
other stakeholders, shall develop a system to track central heating
and air cooling equipment sales and installations in the state. Any
system developed by the commission shall be adopted by regulation
following one or more public hearings.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 381.3 is added to the Public Utilities Code, to
read:

381.3.  

begin delete The commission shall open a new proceeding or expand
the scope of an existing proceeding to establish, by end delete begin insert By end insert January 1,
2016, begin insert the commission, in an existing proceeding, shall establish end insert
an incentive program for contractors and local governments to
improve the verification of building code compliance and
acceptance of begin delete air conditioner appliance systems end delete begin insert central heating
and air cooling equipment end insert following installation. The incentives
may include begin insert , but are not limited to, end insert all of the following:

(a) Funding for training and certification programs for begin delete air
conditioning system installers and end delete begin insert central heating and air cooling
equipment installers, end insert local government building begin delete officials. end delete begin insert officials,
and school building inspectors licensed through the Division of
the State Architect. end insert

(b) Technical and financial support to establish performance
protocols necessary to verify performance compliance of begin delete air
conditioner appliance systems. end delete begin insert central heating and air cooling
equipment. end insert

(c)  begin delete Grants end delete begin insert Financial or other support end insert to assist local agencies
in offsetting costs associated with begin insert employing innovative approaches
to reduce barriers in the permitting process for heating and cooling
equipment, for example, end insert expediting the permitting begin delete of air
conditioning appliance systems that are designed to achieve greater
compliance with state and local building permit requirements. end delete
begin insert process and measures to achieve greater compliance with state
and local building permit requirements. end insert

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(d) Funding for the development of a system to track air
conditioner appliance sales and installations pursuant to Section
7110.05 of the Business and Professions Code.

end delete