BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 1918
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          ASSEMBLY THIRD READING
          AB 1918 (Williams)
          As Amended  April 24, 2014
          Majority vote 

           UTILITIES & COMMERCE            10-3                 
          APPROPRIATIONS      12-5        
          
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Buchanan,       |Ayes:|Gatto, Bocanegra,         |
          |     |Ch�vez, Fong, Garcia,     |     |Bradford,                 |
          |     |Roger Hern�ndez, Mullin,  |     |Ian Calderon, Campos,     |
          |     |Quirk, Rendon, Skinner    |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Patterson, Dahle, Jones   |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Public Utilities Commission (PUC) to  
          establish an incentive program for contractors and local  
          governments to improve the process of verifying newly installed  
          heating and air cooling (HVAC) systems that comply with building  
          code requirements.  The incentives may include the following: 

          1)Funding for training for HVAC installers, local government  
            building officials, contractors, builders and school building  
            inspectors. 

          2)Technical and financial support to establish compliance  
            verification protocols. 

          3)Financial or other support for local agencies to improve  
            permitting. 

          This bill also requires the California Energy Commission (CEC)  
          in consultation with the Contractors' State License Board  
          (CSLB), to identify and implement methods to simplify compliance  
          with state efficiency standards.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor, absorbable costs.









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           COMMENTS  :   

          1)Author's statement:  According to the author, "California's  
            standards for building efficiency are recognized as leading  
            the nation in energy savings and serve as one of the primary  
            energy policy tools that resulted in the state's per capita  
            energy use staying almost constant over the past 30 years,  
            while the rest of the United States' consumption steadily  
            increased. 

            "AB 1918 is needed to ensure that reported energy savings are  
            real, consumers who purchase services for home improvement are  
            protected, and businesses that provide energy efficiency  
            services are operating on a level playing field."

          2)Energy efficiency of heating, ventilating, and  
            air-conditioning (HVAC) systems in California.  The CEC claims  
            only 10% of replacement HVAC do not meet manufacturer's  
            quality control specifications for air flow, refrigerant  
            charge, and the CEC's duct sealing requirements. <1>  They  
            further state that during new construction, only 30% of HVAC  
            installations meet manufacturer's quality control  
            specifications for air flow, refrigerant charge and the CEC's  
            duct sealing requirements.  The CEC asserts these statistics  
            were derived from interviews with building officials, home  
            energy raters, and a study of compliance rates in residential  
            and non-residential buildings.<2> However, the relevant  
            statistics in the HVAC compliance rate study could not be  
            located; therefore, it is unknown whether the 10% and 30%  
            compliance rates are accurate and moreover, the sample size of  
            these interviews could not be determined.  Consequently, it is  
            unclear the extent to which quality control non-compliance is  
            an issue in regards to HVAC installation.  

            Regardless, without proper quality control energy inefficient  
            --------------------------
          <1> HVAC Convener's Report. 2008.  
           http://www.performancealliance.org/Portals/4/Documents/CommitteeW 
          orkspace/AFDD/CONVENER%20HVAC%20Report%20010308.pdf  
          <2> Statewide Codes and Standards Market Adoption and  
          Noncompliance Rates. 2007. Prepared for Southern California  
          Edison.  
           http://www.calmac.org/publications/Codes_and_Standards_Final_Repo 
          rt.pdf  








                                                                  AB 1918
                                                                  Page C

            systems may prevail, wasting energy and money.
           
           3)Title 24 Building Energy Efficiency Standards.  The Energy  
            Efficiency standards apply to all building occupancies, and  
            related features and equipment throughout the state, contain  
            requirements to the structural, mechanical, electrical, and  
            plumbing systems, and require measures for energy  
            conservation, green design.

          4)Previous legislation.  AB 834 (Williams) of the current  
            legislative session, would have expanded the CEC's  
            administrative civil penalty enforcement authority to include  
            energy efficiency and water efficiency standards for  
            buildings.  The bill was substantially amended in July of 2013  
            in the Senate.  SB 454 (Pavley), Chapter 591, Statutes of  
            2011, took a similar approach, and the language was amended  
            out of the bill. With a lack of support for increased  
            enforcement, the author is trying an incentive-based approach  
            in this bill.  
           
          5)Support and opposition.  Supporters claim the bill would  
            develop a process and dedicate resources to provide  
            information and training to allow schools to ensure HVAC  
            systems are properly permitted and operating as efficiently as  
            advertised.  Other supporter's state installation of HVAC  
            systems in existing dwellings without a building permit has  
            simply skyrocketed in recent years, and that there can be  
            serious health and safety risks associated with the  
            installation of these systems in absence of qualified  
            oversight and inspection by the local building code authority.  
             They further assert that there is a high probability that  
            non-permitted HVAC installations are being done in violation  
            of the CEC's energy efficiency standards.  Opposition states  
            that improving compliance with the building energy standards'  
            requirements for replacement heating and cooling equipment  
            will reduce energy use.  


          Analysis Prepared by  :    Brandon Gaytan / U. & C. / (916)  
          319-2083 


                                                                FN: 0003471










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