Amended in Assembly April 24, 2014

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 25402.12 to the Public Resources Code, and to add Section 381.3 to the Public Utilities Code, relating to central heating and air cooling equipment.

LEGISLATIVE COUNSEL’S DIGEST

AB 1918, as amended, Williams. begin delete Central heating and air cooling equipment. end delete begin insert Energy: design and construction standards. end insert

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. begin delete 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. end delete

This bill would require the State Energy Resources Conservation and Development Commission to begin delete develop a system to track central heating and air cooling equipment sales and installations in the state. end delete begin insert identify and implement methods to simplify processes and procedures related to compliance with the above described standards. end insert

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

This bill would require the begin delete commission, end delete begin insert Public Utilities Commission, end insert in an existing proceeding, 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 central heating and air cooling equipment 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:

SECTION 1.  

The Legislature finds and declares all of the
following:

(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.

(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.

(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.

(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.

begin delete

(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.

(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.

(g)

end delete

begin insert (e) end insert  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.

begin delete

(h)

end delete

begin insert (f) end insert  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.

SEC. 2.  

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

25402.12.  

The commission, in consultation with the
Contractors’ State License Board, local building officials, and
other stakeholders, shall begin delete 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 delete begin insert identify and implement
methods to simplify processes and procedures related to
compliance with standards established pursuant to subdivision
(a) or (b) of Section 25402. end insert

SEC. 3.  

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

381.3.  

By January 1, 2016, the commission, in an existing
proceeding, shall establish an incentive program for contractors
and local governments to improve the verification of building code
compliance and acceptance of central heating and air cooling
equipment following installation. The incentives may include, but
are not limited to, all of the following:

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

(b) Technical and financial support to establish performance
protocols necessary to verify performance compliance of central
heating and air cooling equipment.

(c) Financial or other support to assist local agencies in offsetting
costs associated with employing innovative approaches to reduce
barriers in the permitting process for heating and cooling
equipment, for example, expediting the permitting process and
measures to achieve greater compliance with state and local
building permit requirements.