Amended in Senate June 9, 2014

Amended in Assembly April 24, 2014

Amended in Assembly March 26, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 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 tobegin delete central heating and air cooling equipment.end deletebegin insert energy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1918, as amended, Williams. Energy: design and construction standards.

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.

This bill would require the State Energy Resources Conservation and Development Commission to identify and implement methods to simplify processes and procedures related to compliance with the above described standards.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities,begin insert including electrical corporations and gas corporations,end insert as defined.begin insert The Public Utilities Act requires the Public Utilities Commission to review and accept, modify, or reject a procurement plan for each electrical corporation. The act requires that an electrical corporation’s proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost-effective electricity efficiency savings and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan. The Public Utilities Act additionally requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost-effective natural gas efficiency savings and to establish efficiency targets for gas corporations to achieve and requires that a gas corporation first meet its unmet resource needs through all available gas efficiency and demand reduction resources that are cost effective, reliable, and feasible. Pursuant to its existing authority, the Public Utilities Commission has approved energy efficiency programs for electrical corporations and gas corporations, with 3rd parties administering a portion of those programs.end insert

This bill would require the Public Utilities Commission, in an existing proceeding,begin delete to establish,end delete by January 1, 2016,begin delete 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.end deletebegin insert to authorize a program to improve compliance with the State Building Standards Code requirements, and any applicable local ordinances, for heating and air conditioning equipment through existing energy efficiency programs administered by electrical corporations and gas corporations, or administered by 3rd parties on behalf of electrical corporations and gas corporations.end insert

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Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.

end insert
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Because certain of the provisions of this bill are within the act and require action by the Public Utilities Commission to implement, a violation of the program provisions adopted by the Public Utilities Commission pursuant to the bill’s requirements would impose a state-mandated local program by expanding the current definition of a crime.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California’s building energy efficiency standards are
4recognized as leading the nation in energy savings. They are an
5important component of the state’s programs to manage its energy
6consumption, conserve natural resources, and improve the quality
7of life for all its citizens.

8(b) Heating and cooling buildings is one of the largest electricity
9end uses in the state and is also the single largest contributor to
10peak electricity demand, comprising up to 30 percent of total
11demand in the hot summer months.

12(c) In the 2008 Strategic Plan to Reduce the Energy Impact of
13Air Conditioners, the State Energy Resources Conservation and
14Development Commission identified that a heating, ventilation,
15and air conditioning system (HVAC) can increase energy use by
1620 or 30 percent if it is poorly installed regardless of its efficiency
17rating.

18(d) Permits are required for the replacement of heating and
19cooling equipment and a code official must verify installation in
20compliance with the building energy efficiency standards. The
21effectiveness of the building energy efficiency standards is
22dependent upon the conscientious efforts of licensedbegin delete contractorsend delete
23begin insert contractors, local building officials, property owners, builders,
24and end insert
begin insertothers end insertin California to follow these permitting requirements
25to build buildings and install components and equipment in
26compliance with the standards which deliver cost-effective energy
27savings to consumers.

begin delete

28(e) California building codes are updated regularly, necessitating
29more training and education for building officials performing
30permitting, plan checking, and inspections. Providing this education
31in tandem with incentives for beyond-code performance will
P4    1motivate both local building departments and contractors to
2prioritize energy efficiency performance in their day-to-day
3operations.

end delete
begin insert

4(e) Local governments issue required permits for heating and
5cooling equipment and are in an unique role to help address low
6energy code compliance. As the agencies responsible for
7enforcement, local governments are in a distinct position to
8understand and identify some of the critical factors limiting full
9compliance with the building energy efficiency standards. By
10continuing to strategically identify and target these factors, energy
11efficiency programs can capitalize on this local government role
12to further support increased compliance and capture cost-effective
13energy savings to consumers.

end insert

14(f) In an effort to increase permitted activity, some local
15jurisdictions have adopted practices that make it easier to obtain
16permits or have implemented pilot programs to educate and train
17local building staff. It is in California’s best interest to facilitate
18the adoption of demonstrated best practices for local building
19departments across the state to undertake to maximize compliance
20with building codes.

21

SEC. 2.  

Section 25402.12 is added to the Public Resources
22Code
, to read:

23

25402.12.  

The commission, in consultation with the
24Contractors’ State License Board, local building officials, and
25other stakeholders, shall identify and implement methods to
26simplify processes and procedures related to compliance with
27standards established pursuant to subdivision (a) or (b) of Section
2825402.

29

SEC. 3.  

Section 381.3 is added to the Public Utilities Code, to
30read:

31

381.3.  

begin insert(a)end insertbegin insertend insert By January 1, 2016, the commission, in an existing
32proceeding, shallbegin delete establish an incentive program for contractors
33and local governments to improve the verification of building code
34compliance and acceptance of central heating and air cooling
35equipment following installation. The incentives may include, but
36are not limited to, all of the following:end delete
begin insert authorize a program to
37improve compliance with the State Building Standards Code
38requirements, and any applicable local ordinances, for heating
39and air conditioning equipment through existing energy efficiency
40programs administered by electrical corporations and gas
P5    1corporations, or administered by third parties on behalf of
2electrical corporations and gas corporations. The program design
3may include, but is not limited to, both of the following:end insert

begin insert

4(1) Assisting local governments employing innovative
5approaches to reduce barriers to, and increase compliance with,
6the permitting process for heating and cooling equipment. Program
7elements may include:

end insert
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8(A) Public outreach campaigns.

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9(B) Computer-based permitting tools.

end insert
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10(C) Improvements to streamline the permitting process.

end insert
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11(D) Measures to address the market constraints resulting in low
12permit compliance.

end insert
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13(E) Establishing programs, such as partnerships with local
14governments, to specifically target improving compliance for
15installation of heating and air conditioning equipment.

end insert
begin insert

16(F) Other measures to achieve greater compliance with State
17Building Standards Code requirements, and any applicable local
18ordinances, for heating and air conditioning equipment. Measures
19may include performance protocols necessary to verify
20performance compliance of central heating and cooling equipment.

end insert
begin insert

21(2) Technical or financial support, including those methods
22identified by local governments to assist local governments with
23ensuring compliance with State Building Standards Code
24requirements, and any applicable local ordinances, for heating
25and air conditioning equipment.

end insert
begin insert

26(b) The commission shall evaluate the program’s design and
27quantify increased permit compliance and energy savings as a
28result of permit compliance.

end insert
begin delete

29(a) Additional funding, as necessary, for training and
30certification programs for central heating and air cooling equipment
31installers, local government building officials, contractors, builders,
32and school building inspectors licensed through the Division of
33the State Architect.

34(b) Technical and financial support to establish performance
35protocols necessary to verify performance compliance of central
36heating and air cooling equipment.

37(c) Financial or other support to assist local agencies in offsetting
38costs associated with employing innovative approaches to reduce
39barriers in the permitting process for heating and cooling
40equipment, for example, expediting the permitting process and
P6    1measures to achieve greater compliance with state and local
2building permit requirements.

end delete
3begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
4Section 6 of Article XIII B of the California Constitution because
5the only costs that may be incurred by a local agency or school
6district will be incurred because this act creates a new crime or
7infraction, eliminates a crime or infraction, or changes the penalty
8for a crime or infraction, within the meaning of Section 17556 of
9the Government Code, or changes the definition of a crime within
10the meaning of Section 6 of Article XIII B of the California
11Constitution.

end insert


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