Amended in Senate August 11, 2014

Amended in Senate June 30, 2014

Amended in Senate June 16, 2014

Amended in Assembly May 28, 2014

Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2581

Introduced by Assembly Member Bradford

February 21, 2014

An act to amend Sections 25402, 25402.1, and 25942 of the Public Resources Code, and to add Section 454.58 to the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2581, as amended, Bradford. Energy: appliance standards: public domain computer program: home energy rating: energy efficiency program for appliances.

(1) Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, standards for minimum levels of operating efficiency, and authorizes the commission to prescribe other cost-effective measures, to promote the use of energy-efficient and water-efficient appliances whose use requires a significant amount of energy or water on a statewide basis.

This bill would instead authorize the commission to prescribe or adopt other cost-effective measures. The bill would authorize the commission to consider or recognize voluntary agreements in lieu of regulation described above and to take voluntary agreements into account in its planning. The bill would require the commission to consider adopting a process for the repeal, or suspension of enforcement, of a standard for minimum levels of operating efficiency for an appliance that the commission finds to be duplicative or inconsistent with federal or state law. The bill would require any labeling requirement prescribed by the commission to allow a manufacturer to use electronic labeling as appropriate. The bill would require the commission to consider the most current data begin delete possible and, whenever feasible, to consider data no older than one year prior to the commencement of a rulemaking proceeding end delete begin insert provided to the commission regarding a proposed standard for an appliance before the publication of the notice of the proposed action end insert to consider adoption or amendment of a standard for an appliance. begin insert The bill would require the commission to explain in the final statement of reasons how it considered those data. end insert

(2) Existing law requires the commission to prescribe, by regulation, lighting, insulation climate control system, and other building design and construction standards that increase the efficiency in the use of energy and water for new residential and new nonresidential buildings. Existing law also requires the commission to prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. In order to implement these requirements, existing law requires the commission to develop a public domain computer program that enables contractors, builders, architects, engineers, and government officials to estimate energy consumed by residential and nonresidential buildings and requires the commission to establish a formal process for certification of compliance options for new products, materials, and calculation methods, as prescribed.

This bill would require the commission to approve and make publicly available, not less than 6 months prior to the effective date of adopted or updated efficiency standards, the public domain computer program. The bill would require the commission, before approving the public domain computer program, to perform preliminary tests of the public domain computer program using common examples of residential and nonresidential buildings and building systems to ensure the usability of the program by users of the program. The bill would require the commission to make the results of those preliminary tests publicly available.

(3) Existing law requires the commission to establish criteria for adopting a statewide home energy rating program for residential dwellings.

For existing single-family residential dwellings and multifamily residential dwellings with up to 4 units, the bill would require the commission, in administering the statewide home energy rating program, to ensure that energy assessment tools used by the commission are routinely adjusted to improve modeling accuracy and to ensure that consumers receive a notice with the output of the energy assessment tools explaining the assumptions used in the energy assessment tools and how they may differ from actual usage patterns.

(4) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act requires the begin delete Public Utilities Commission end delete begin insert commission end insert to review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. 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.

This bill would require the Public Utilities Commission, no later than January 1, 2016, to include in its energy efficiency portfolio program, a program to provide incentives to an electrical corporation that adopts an energy efficiency program to reduce electrical demand from indoor appliances. In order to receive incentives from the program, the bill would require the begin delete Public Utilities Commission end delete begin insert commission end insert to require an energy efficiency program for indoor appliances adopted by an electrical corporation to be established and maintained at a net to gross ratio of 0.8 for 36 consecutive months. After 36 months, the bill would authorize the begin delete Public Utilities Commission end delete begin insert commission end insert to evaluate the energy efficiency program and adjust the net to gross ratio on a prospective basis.

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.  

Section 25402 of the Public Resources Code is
amended to read:

25402.  

The commission shall, after one or more public
hearings, do all of the following, in order to reduce the wasteful,
uneconomic, inefficient, or unnecessary consumption of energy,
including the energy associated with the use of water:

(a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction
standards that increase the efficiency in the use of energy and water
for new residential and new nonresidential buildings. The
commission shall periodically update the standards and adopt any
revision that, in its judgment, it deems necessary. Six months after
the commission certifies an energy conservation manual pursuant
to subdivision (c) of Section 25402.1, a city, county, city and
county, or state agency shall not issue a permit for a building unless
the building satisfies the standards prescribed by the commission
pursuant to this subdivision or subdivision (b) that are in effect on
the date an application for a building permit is filed. Water
efficiency standards adopted pursuant to this subdivision shall be
demonstrated by the commission to be necessary to save energy.

(2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding
whether the standard (A) is equivalent or superior in performance,
safety, and for the protection of life, health, and general welfare
to standards in Title 24 of the California Code of Regulations and
(B) does not unreasonably or unnecessarily impact the ability of
Californians to purchase or rent affordable housing, as determined
by taking account of the overall benefit derived from water
efficiency standards. This subdivision does not in any way reduce
the authority of the Department of Housing and Community
Development to adopt standards and regulations pursuant to Part
1.5 (commencing with Section 17910) of Division 13 of the Health
and Safety Code.

(3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The commission shall
consult with the members of the coordinating council as established
in Section 18926 of the Health and Safety Code in the development
of these standards.

(b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall
be promulgated in terms of energy consumption per gross square
foot of floorspace, but may also include devices, systems, and
techniques required to conserve energy and water. The commission
shall periodically review the standards and adopt any revision that,
in its judgment, it deems necessary. A building that satisfies the
standards prescribed pursuant to this subdivision need not comply
with the standards prescribed pursuant to subdivision (a). Water
conservation design standards adopted pursuant to this subdivision
shall be demonstrated by the commission to be necessary to save
energy. Prior to adopting a water conservation design standard for
residential buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding
whether the standard (A) is equivalent or superior in performance,
safety, and for the protection of life, health, and general welfare
to standards in the California Building Standards Code and (B)
does not unreasonably or unnecessarily impact the ability of
Californians to purchase or rent affordable housing, as determined
by taking account of the overall benefit derived from the water
conservation design standards. Nothing in this subdivision in any
way reduces the authority of the Department of Housing and
Community Development to adopt standards and regulations
pursuant to Part 1.5 (commencing with Section 17910) of Division
13 of the Health and Safety Code.

(2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to subdivisions (a) and
(b), the commission shall, prior to publication of the notice of
proposed action required by Section 18935 of the Health and Safety
Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the commission shall
receive and take into consideration input from all parties
concerning the parties’ design recommendations, cost
considerations, and other factors that would affect consumers and
California businesses of the proposed standard. The commission
shall take into consideration prior to the start of the notice of
proposed action any input provided during these public meetings.

(3) The standards adopted or revised pursuant to subdivisions
(a) and (b) shall be cost-effective when taken in their entirety and
when amortized over the economic life of the structure compared
with historic practice. When determining cost-effectiveness, the
commission shall consider the value of the water or energy saved,
impact on product efficacy for the consumer, and the life-cycle
cost of complying with the standard. The commission shall consider
other relevant factors, as required by Sections 18930 and 18935
of the Health and Safety Code, including, but not limited to, the
impact on housing costs, the total statewide costs and benefits of
the standard over its lifetime, economic impact on California
businesses, and alternative approaches and their associated costs.

(c) (1) (A) Prescribe, by regulation, standards for minimum
levels of operating efficiency, based on a reasonable use pattern,
and may prescribe or adopt other cost-effective measures, including
incentive programs, fleet averaging, energy and water consumption
labeling not preempted by federal labeling law, and consumer
education programs, to promote the use of energy and water
efficient appliances whose use, as determined by the commission,
requires a significant amount of energy or water on a statewide
basis. The minimum levels of operating efficiency shall be based
on feasible and attainable efficiencies or feasible improved
efficiencies that will reduce the energy or water consumption
growth rates. The standards shall become effective no sooner than
one year after the date of adoption or revision. A new appliance
manufactured on or after the effective date of the standards shall
not be sold or offered for sale in the state, unless it is certified by
the manufacturer thereof to be in compliance with the standards.
The standards shall be drawn so that they do not result in any added
total costs for consumers over the designed life of the appliances
concerned.

(B) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to this subdivision, the
commission shall, prior to publication of the notice of proposed
action required by Section 18935 of the Health and Safety Code,
involve parties who would be subject to the proposed regulations
in public meetings regarding the proposed regulations. All potential
affected parties shall be provided advance notice of these meetings
and given an opportunity to provide written or oral comments.
During these public meetings, the commission shall receive and
take into consideration input from all parties concerning the parties’
design recommendations, cost considerations, and other factors
that would affect consumers and California businesses of the
proposed standard. The commission shall take into consideration
prior to the start of the notice of proposed action any input provided
during these public meetings.

(C) The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the
consumer, and the life-cycle cost to the consumer of complying
with the standard. The commission shall consider other relevant
factors, as required by Sections 11346.5 and 11357 of the
Government Code, including, but not limited to, the impact on
housing costs, the total statewide costs and benefits of the standard
over its lifetime, economic impact on California businesses, and
alternative approaches and their associated costs.

(D) Any labeling requirement prescribed by the commission
pursuant to subparagraph (A) shall allow a manufacturer to use
electronic labeling as appropriate. The use of electronic labeling
does not alter requirements to submit data to the commission’s
appliance efficiency database.

(2) A new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
shall not be sold, or offered for sale, in the state, unless the date
of the manufacture is permanently displayed in an accessible place
on that appliance.

(3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1),
an increase or decrease in the minimum level of operating
efficiency required by the standard for that appliance shall not
become effective, unless the commission adopts other cost-effective
measures for that appliance.

(4) Neither the commission nor any other state agency shall
take any action to decrease any standard adopted under this
subdivision on or before June 30, 1985, prescribing minimum
levels of operating efficiency or other energy conservation
measures for any appliance, unless the commission finds by a
four-fifths vote that a decrease is of benefit to ratepayers, and that
there is significant evidence of changed circumstances. Before
January 1, 1986, the commission shall not take any action to
increase a standard prescribing minimum levels of operating
efficiency for any appliance or adopt a new standard under
paragraph (1). Before January 1, 1986, any appliance manufacturer
doing business in this state shall provide directly, or through an
appropriate trade or industry association, information, as specified
by the commission after consultation with manufacturers doing
business in the state and appropriate trade or industry associations
on sales of appliances so that the commission may study the effects
of regulations on those sales. These informational requirements
shall remain in effect until the information is received. The trade
or industry association may submit sales information in an
aggregated form in a manner that allows the commission to carry
out the purposes of the study. The commission shall treat any sales
information of an individual manufacturer as confidential and that
information shall not be a public record. The commission shall not
request any information that cannot be reasonably produced in the
exercise of due diligence by the manufacturer. At least one year
prior to the adoption or amendment of a standard for an appliance,
the commission shall notify the Legislature of its intent, and the
justification to adopt or amend a standard for the appliance. The
commission shall consider the most current data begin delete available and,
whenever feasible, shall consider data no older than one year prior
to the commencement of a rulemaking proceeding end delete begin insert provided to the
commission regarding any proposed standard under this
subdivision before the publication of the notice of proposed action
pursuant to paragraph (5) of subdivision (a) of Section 11346.4
of the Government Code end insert to consider adoption or amendment of a
standard for an appliance pursuant to this subdivision. begin insert The
commission shall explain in the final statement of reasons prepared
pursuant to Section 11346.9 of the Government Code how it
considered this data provided to the commission. end insert Notwithstanding
paragraph (3) and this paragraph, the commission may do any of
the following:

(A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary
Consensus Standards 90, adopted by the American Society of
Heating, Refrigeration, and Air Conditioning Engineers or, for
appliances not covered by that standard, up to the level established
in a similar nationwide consensus standard.

(B) Change the measure or rating of efficiency of any standard,
if the minimum level of operating efficiency remains substantially
the same.

(C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.

(D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.

(E) Adopt or amend any existing or new standard at any level
of operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.

(5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or
before June 30, 1985.

(6) (A) The commission may consider or recognize voluntary
agreements in lieu of regulation pursuant to paragraph (1).

(B) The commission may take voluntary agreements into account
in its planning.

(7) The commission shall consider, as part of the rulemaking
proceeding instituted by Commission Order No. 12-0112-06,
adopting a process for the repeal, or suspension of enforcement,
of a standard prescribed by paragraph (1) that the commission
finds is duplicative or inconsistent with federal or state law.

(d) (1) Recommend minimum standards of efficiency for the
operation of a new facility at a particular site that are technically
and economically feasible. A site and related facility shall not be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include
a statement specifying the extent to which conformance with the
recommended standards will be achieved.

(2) Whenever this section and Chapter 11.5 (commencing with
Section 19878) of Part 3 of Division 13 of the Health and Safety
Code are in conflict, the commission shall be governed by that
chapter of the Health and Safety Code to the extent of the conflict.

(e) The commission shall do all of the following:

(1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.

(2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.

(3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).

SEC. 2.  

Section 25402.1 of the Public Resources Code is
amended to read:

25402.1.  

In order to implement the requirements of subdivisions
(a) and (b) of Section 25402, all of the following shall apply:

(a) The commission shall develop a public domain computer
program that will enable contractors, builders, architects, engineers,
and government officials to estimate the energy consumed by
residential and nonresidential buildings. The commission may
charge a fee for the use of the program, which shall be based upon
the actual cost of the program, including any computer costs.

(b) The commission shall establish a formal process for
certification of compliance options for new products, materials,
and calculation methods that provides for adequate technical and
public review to ensure accurate, equitable, and timely evaluation
of certification applications. Proponents filing applications for new
products, materials, and calculation methods shall provide all
information needed to evaluate the application that is required by
the commission. The commission shall publish annually the results
of its certification decisions and instructions to users and local
building officials concerning requirements for showing compliance
with the building standards for new products, materials, or
calculation methods. The commission may charge and collect a
reasonable fee from applicants to cover the costs under this
subdivision. Any funds received by the commission for purposes
of this subdivision shall be deposited in the Energy Resources
Programs Account and, notwithstanding Section 13340 of the
Government Code, are continuously appropriated to the
commission for the purposes of this subdivision. Any
unencumbered portion of funds collected as a fee for an application
remaining in the Energy Resources Programs Account after
completion of the certification process for that application shall
be returned to the applicant within a reasonable period of time.

(c) The commission shall include a prescriptive method of
complying with the standards, including design aids such as a
manual, sample calculations, and model structural designs.

(d) The commission shall conduct a pilot project of field testing
of actual residential buildings to calibrate and identify potential
needed changes in the modeling assumptions to increase the
accuracy of the public domain computer program specified in
subdivision (a) and to evaluate the impacts of the standards,
including, but not limited to, the energy savings, cost-effectiveness,
and the effects on indoor air quality. The pilot project shall be
conducted pursuant to a contract entered into by the commission.
The commission shall consult with the participants designated
pursuant to Section 9202 of the Public Utilities Code, as that
section read on December 31, 2003, to seek funding and support
for field monitoring in each public utility service territory, with
the University of California to take advantage of its extensive
building monitoring expertise, and with the California Building
Industry Association to coordinate the involvement of builders
and developers throughout the state. The pilot project shall include
periodic public workshops to develop plans and review progress.
The commission shall prepare and submit a report to the Legislature
on progress and initial findings not later than December 31, 1988,
and a final report on the results of the pilot project on residential
buildings not later than June 30, 1990. The report shall include
recommendations regarding the need and feasibility of conducting
further monitoring of actual residential and nonresidential
buildings. The report shall also identify any revisions to the public
domain computer program and energy conservation standards if
the pilot project determines that revisions are appropriate.

(e) The commission shall certify, not later than 180 days after
approval of the standards by the State Building Standards
Commission, an energy conservation manual for use by designers,
builders, and contractors of residential and nonresidential buildings.
The manual shall be furnished upon request at a price sufficient
to cover the costs of production and shall be distributed at no cost
to all affected local agencies. The manual shall contain, but not be
limited to, the following:

(1) The standards for energy conservation established by the
commission.

(2) Forms, charts, tables, and other data to assist designers and
builders in meeting the standards.

(3) Design suggestions for meeting or exceeding the standards.

(4) Any other information which the commission finds will
assist persons in conforming to the standards.

(5) Instructions for use of the computer program for calculating
energy consumption in residential and nonresidential buildings.

(6) The prescriptive method for use as an alternative to the
computer program.

(f) The commission shall approve and make publicly available,
not less than six months prior to the effective date of adopted or
updated standards, the public domain computer program developed
pursuant to subdivision (a). Before approving the public domain
computer program, the commission shall do both of the following:

(1) Perform preliminary tests of the public domain computer
program using common examples of residential and nonresidential
buildings and building systems to ensure the usability of the public
domain computer program by users of the program, including, but
not limited to, architects, builders, contractors, and local code
enforcement personnel.

(2) Make the results of the preliminary tests publicly available.

(g) The commission shall establish a continuing program of
technical assistance to local building departments in the
enforcement of subdivisions (a) and (b) of Section 25402 and this
section. The program shall include the training of local officials
in building technology and enforcement procedures related to
energy conservation, and the development of complementary
training programs conducted by local governments, educational
institutions, and other public or private entities. The technical
assistance program shall include the preparation and publication
of forms and procedures for local building departments in
performing the review of building plans and specifications. The
commission shall provide, on a contract basis, a review of building
plans and specifications submitted by a local building department,
and shall adopt a schedule of fees sufficient to repay the cost of
those services.

(h) Subdivisions (a) and (b) of Section 25402 and this section,
and the rules and regulations of the commission adopted pursuant
to those provisions, shall be enforced by the building department
of every city, county, or city and county.

(1) A building permit for a residential or nonresidential building
shall not be issued by a local building department, unless a review
by the building department of the plans for the proposed residential
or nonresidential building contains detailed energy system
specifications and confirms that the building satisfies the minimum
standards established pursuant to subdivision (a) or (b) of Section
25402 and this section applicable to the building.

(2) Where there is no local building department, the commission
shall enforce subdivisions (a) and (b) of Section 25402 and this
section.

(3) If a local building department fails to enforce subdivisions
(a) and (b) of Section 25402 and this section or any other provision
of this chapter or standard adopted pursuant thereto, the
commission may provide enforcement after furnishing 10 days’
written notice to the local building department.

(4) A city, county, or city and county may, by ordinance or
resolution, prescribe a schedule of fees sufficient to pay the costs
incurred in the enforcement of subdivisions (a) and (b) of Section
25402 and this section. The commission may establish a schedule
of fees sufficient to pay the costs incurred by that enforcement.

(5) The construction of a state building shall not commence
until the Department of General Services or the state agency that
otherwise has jurisdiction over the property reviews the plans for
the proposed building and certifies that the plans satisfy the
minimum standards established pursuant to Chapter 2.8
(commencing with Section 15814.30) of Part 10b of Division 3 of
Title 2 of the Government Code, subdivision (a) or (b) of Section
25402, and this section that are applicable to the building.

(i) Subdivisions (a) and (b) of Section 25402 and this section
shall apply only to new residential and nonresidential buildings
on which actual site preparation and construction have not
commenced prior to the effective date of rules and regulations
adopted pursuant to those sections that are applicable to those
buildings. Those sections shall not prohibit either of the following:

(1) The enforcement of state or local energy conservation or
energy insulation standards, adopted prior to the effective date of
rules and regulations adopted pursuant to subdivisions (a) and (b)
of Section 25402 and this section with regard to residential and
nonresidential buildings on which actual site preparation and
construction have commenced prior to that date.

(2) The enforcement of city or county energy conservation or
energy insulation standards, whenever adopted, with regard to
residential and nonresidential buildings on which actual site
preparation and construction have not commenced prior to the
effective date of rules and regulations adopted pursuant to
subdivisions (a) and (b) of Section 25402 and this section, if the
city or county files the basis of its determination that the standards
are cost effective with the commission and the commission finds
that the standards will require the diminution of energy
consumption levels permitted by the rules and regulations adopted
pursuant to those sections. If, after two or more years after the
filing with the commission of the determination that those standards
are cost effective, there has been a substantial change in the factual
circumstances affecting the determination, upon application by
any interested party, the city or county shall update and file a new
basis of its determination that the standards are cost effective. The
determination that the standards are cost effective shall be adopted
by the governing body of the city or county at a public meeting.
If, at the meeting on the matter, the governing body determines
that the standards are no longer cost effective, the standards shall,
as of that date, be unenforceable and no building permit or other
entitlement shall be denied based on the noncompliance with the
standards.

(j) The commission may exempt from the requirements of this
section and of any regulations adopted pursuant to this section any
proposed building for which compliance would be impossible
without substantial delays and increases in cost of construction, if
the commission finds that substantial funds have been expended
in good faith on planning, designing, architecture, or engineering
prior to the date of adoption of the regulations.

(k) If a dispute arises between an applicant for a building permit,
or the state pursuant to paragraph (5) of subdivision (h), and the
building department regarding interpretation of Section 25402 or
the regulations adopted pursuant thereto, either party may submit
the dispute to the commission for resolution. The commission’s
determination of the matter shall be binding on the parties.

(l) Nothing in Section 25130, 25131, or 25402, or in this section
prevents enforcement of any regulation adopted pursuant to this
chapter, or Chapter 11.5 (commencing with Section 19878) of Part
3 of Division 13 of the Health and Safety Code as they existed
prior to September 16, 1977.

SEC. 3.  

Section 25942 of the Public Resources Code is
amended to read:

25942.  

(a) On or before July 1, 1995, the commission shall
establish criteria for adopting a statewide home energy rating
program for residential dwellings. The program criteria shall
include, but are not limited to, all of the following elements:

(1) Consistent, accurate, and uniform ratings based on a single
statewide rating scale.

(2) Reasonable estimates of potential utility bill savings, and
reliable recommendations on cost-effective measures to improve
energy efficiency.

(3) Training and certification procedures for home raters and
quality assurance procedures to promote accurate ratings and to
protect consumers.

(4) In coordination with home energy rating service organization
databases, procedures to establish a centralized, publicly accessible,
database that includes a uniform reporting system for information
on residential dwellings, excluding proprietary information, needed
to facilitate the program. There shall be no public access to
information in the database concerning specific dwellings without
the owner’s or occupant’s permission.

(5) Labeling procedures that will meet the needs of home buyers,
homeowners, renters, the real estate industry, and mortgage lenders
with an interest in home energy ratings.

(b) The commission shall adopt the program pursuant to
subdivision (a) in consultation with representatives of the Bureau
of Real Estate, the Department of Housing and Community
Development, the Public Utilities Commission, investor-owned
and municipal utilities, cities and counties, real estate licensees,
home builders, mortgage lenders, home appraisers and inspectors,
home energy rating organizations, contractors who provide home
energy services, consumer groups, and environmental groups.

(c) On and after January 1, 1996, a home energy rating services
shall not be performed in this state unless the services have been
certified, if such a certification program is available, by the
commission to be in compliance with the program criteria specified
in subdivision (a) and, in addition, are in conformity with any other
applicable element of the program.

(d) On or before July 1, 1996, the commission shall consult with
the agencies and organizations described in subdivision (b), to
facilitate a public information program to inform homeowners,
rental property owners, renters, sellers, and others of the existence
of the statewide home energy rating program adopted by the
commission.

(e) The commission shall, as part of the biennial report prepared
pursuant to Section 25302, report on the progress made to
implement a statewide home energy rating program. The report
shall include an evaluation of the energy savings attributable to
the program, and a recommendation concerning which means and
methods will be most efficient and cost-effective to induce home
energy ratings for residential dwellings.

(f) For existing single-family residential dwellings and
multifamily residential dwellings with up to four units, the
commission shall do both of the following in administering the
statewide home energy rating program:

(1) Ensure energy assessment tools used by the commission are
routinely adjusted to improve modeling accuracy.

(2) Ensure that consumers receive a notice with the output of
the energy assessment tools explaining the assumptions used in
the energy assessment tools and how they may differ from actual
usage patterns.

SEC. 4.  

Section 454.58 is added to the Public Utilities Code,
to read:

454.58.  

(a) No later than January 1, 2016, the commission
shall, in a new or existing proceeding, include a program in its
energy efficiency portfolio program to provide incentives to an
electrical corporation that adopts an energy efficiency program to
reduce electrical demand from indoor appliances.

(b) The program established by the commission pursuant to
subdivision (a) shall address challenges and minimize
programmatic barriers that may limit or inhibit the achievement
of energy efficiency goals determined by the commission. The
energy efficiency goals shall include, but not be limited to, all of
the following:

(1) Evaluation and attribution of energy savings.

(2) Long-lasting, sustainable increases in the adoption of energy
efficiency technologies through structural changes in the market
and in behaviors of market actors for indoor appliances that receive
electricity through power outlets, such as 110 voltage alternating
current (VAC), and other emerging delivery mechanisms, including
universal serial bus (USB), Power over Ethernet (PoE), and 24-volt
direct current (VDC).

(c) In order to receive incentives from the program, the
commission shall require an energy efficiency program adopted
by an electrical corporation pursuant to subdivision (a) to be
established and maintained at a net to gross ratio of 0.8 for a
minimum of 36 consecutive months. After 36 months, the
commission may evaluate the energy efficiency program and adjust
the net to gross ratio on a prospective basis.

(d) The commission shall update cost-effectiveness tools to
account for long-term benefits and costs that accrue as a result of
the establishment of programs pursuant to subdivision (a).