Bill Text: CA AB3001 | 2017-2018 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Zero-emissions buildings and sources of heat energy.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-04-09 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB3001 Detail]

Download: California-2017-AB3001-Introduced.html


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 3001


Introduced by Assembly Member Bonta
(Coauthor: Assembly Member Friedman)

February 16, 2018


An act to amend Section 25402 of, and to add Section 25403 to, the Public Resources Code, and to amend Sections 12819 and 16480 of, and to add Sections 380.7, 380.8, and 740.18 to, the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3001, as introduced, Bonta. Zero-emissions buildings and sources of heat energy.
(1) The Warren-Alquist State Energy Resources Conservation and Development Act requires the State Energy Resources Conservation and Development Commission (Energy Commission) to adopt building design and construction standards and energy and water conservation standards for new residential and nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including energy associated with the use of water. The act requires those standards to be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. Existing law requires the Energy Commission, in determining cost effectiveness, to consider certain factors.
This bill would additionally require the Energy Commission, in the cost-effectiveness determination, to consider emissions of greenhouse gases from fossil fuel combustion and fugitive emissions that are avoided and progress toward meeting the state’s climate goals. The bill would require the Energy Commission, for the year 2022 and thereafter, to require new residential and nonresidential buildings to be electric-ready buildings, as defined, and to develop standards pursuant to which emissions of greenhouse gases associated with new residential and nonresidential buildings could be reduced in a cost-effective manner.
(2) Existing law authorizes the PUC to fix the rates and charges for every public utility, including electrical corporations, and requires that those rates and charges be just and reasonable.
This bill would require the PUC to require electrical corporations to develop a tariff offering optional residential and commercial rates that encourage the deployment of flexible electric loads. By requiring electrical corporations to develop the tariff, a violation of which would be a crime, this bill would impose a state-mandated local program. The bill would require the PUC to identify and make policy changes to support the achievement of zero-emissions buildings. The bill would require the PUC to (A) revise its 3-prong fuel substitution test, as specified, (B) include societal and environmental costs of energy use in determining the cost-effectiveness of programs under its jurisdiction, and (C) include thermal storage and electric vehicle smart charging as qualifying resources for incentives and procurement requirements for energy storage systems.
(3) Existing law, except as specified, prohibits public utility districts and municipal utility districts from expending funds for advertising when the advertising encourages increased consumption of the services or commodities.
This bill would additionally authorize advertising that encourages increased consumption of services and commodities if the increased consumption results in a net decrease in the emissions of greenhouse gases due to the displacement of energy use resulting from the increased consumption.
(4) 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.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 This act shall be known, and may be cited, as the California Zero-Emissions Buildings Act.

SEC. 2.

 (a) The Legislature finds and declares all of the following:
(1) Residential and nonresidential buildings are the second largest source of emissions of greenhouse gases in the state, and are significant sources of air pollution harmful to the health of Californians and the environment.
(2) California cannot achieve its air quality and climate goals without a deep reduction in emissions from residential and nonresidential buildings. Current building-related energy policies fall short of achieving an emission reduction of greenhouse gases of 40 percent below 1990 levels by 2030 and 80 percent below the 1990 levels by 2050 for residential and nonresidential buildings. While energy efficiency in buildings will continue to be an important and significant contributor to reducing emissions, a large-scale transition away from burning fossil fuels, such as natural gas and propane, is also needed to reach California’s climate and clean air targets.
(3) While California is a leader in increasing the availability of clean electricity, the state has made little progress on transitioning away from burning fossil fuels and towards clean energy alternatives in buildings.
(4) Modern clean technologies, such as electric heat pumps and solar thermal systems, have the potential to dramatically and affordably reduce pollution from the building sector, while helping to integrate high levels of renewable energy into the electricity grid.
(5) Large-scale deployment of these clean heating technologies at the pace and scale necessary to achieve California’s air quality and climate goals requires a comprehensive strategy that does all of the following:
(A) Removes regulatory barriers that currently hinder the clean energy transition in buildings.
(B) Sets electricity rates that value and encourage demand flexibility.
(C) Unleashes industrial innovation to reduce costs through a clear long-term direction and short- and mid-term market stimulation.
(D) Develops capacity in the supply chain through installer, distributor, and retailer training.
(E) Raises awareness among the public to drive demand.
(6) The transition to healthy and affordable clean energy buildings will protect the health of Californians, create local jobs, stimulate economic growth, and safeguard the environment.
(b) It is the intent of the Legislature for the state’s energy agencies to take expedient action to accelerate the transition of the California building sector to developing healthy, affordable, and clean energy buildings, in alignment with the state’s climate and clean energy goals, while also prioritizing investments in low-income and disadvantaged communities.

SEC. 3.

 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, 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, no city, county, city and county, or state agency shall issue a permit for any 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. 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.
(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 hourly source 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 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, the life cycle emissions of greenhouse gases from fossil fuel, including combustion and fugitive emissions, instate and out-of-state, that are avoided, 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, progress toward the state’s 2030 climate goals as set forth in Division 25.5 (commencing with Section 38500) of the Health and Safety Code and other climate goals adopted by the Legislature, and alternative approaches and their associated costs.
(c) (1) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe 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. No new appliance manufactured on or after the effective date of the standards may 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.
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.
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.
(2) No new appliance, except for any plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, may 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), no increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall 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. 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.
(d) Recommend minimum standards of efficiency for the operation of any new facility at a particular site that are technically and economically feasible. No site and related facility shall 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.
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. 4.

 Section 25403 is added to the Public Resources Code, to read:

25403.
 In regulations prescribed pursuant to subdivision (a) or (b) of Section 25402 for the year 2022 and thereafter, the commission shall do both of the following:
(a) Require, in consultation with the State Building Standards Commission, all new residential and nonresidential buildings be electric-ready buildings. For purposes of this subdivision, “electric-ready buildings” means buildings containing electric infrastructure necessary to enable building occupants to use electrical equipment in lieu of natural gas-fired equipment, such as space and water heating equipment, without the need for additional upgrades to the building’s electrical infrastructure.
(b) Develop standards pursuant to which emissions of greenhouse gases associated with new residential and nonresidential buildings could be reduced in a cost-effective manner.

SEC. 5.

 Section 380.7 is added to the Public Utilities Code, to read:

380.7.
 The commission, in an existing or new proceeding, shall identify and make policy changes to support the achievement of zero-emissions buildings, including by any of the following:
(a) Removal of barriers to the use of clean energy in buildings, including electrification of space and water heating in buildings where electrification has the potential to help achieve the state’s climate goals.
(b) Creating incentive programs and rate structures that encourage the transition to cleaner fuels for residential and nonresidential buildings.
(c) Planning for and managing necessary changes in the energy infrastructure, such as investment in natural gas infrastructure.

SEC. 6.

 Section 380.8 is added to the Public Utilities Code, to read:

380.8.
 The commission shall do all of the following:
(a) Revise the three-prong fuel substitution test used to determine the eligibility of projects to receive ratepayer-funded energy efficiency incentives, as established in commission decisions D92-10-020 and D92-12-050, to align the test with the state’s climate goals by increasing opportunities to reduce the emissions of greenhouse gases through fuel substitution.
(b) Include the societal and environmental costs of energy use, including combustion and fugitive emissions, in determining cost-effectiveness for programs under its jurisdiction.
(c) (1) Include thermal storage and electric vehicle smart charging as qualifying resources for incentive programs or procurement requirements for energy storage systems.
(2) Recommend to the Legislature necessary statutory amendments to implement paragraph (1).

SEC. 7.

 Section 740.18 is added to the Public Utilities Code, to read:

740.18.
 The commission shall require electrical corporations to develop and submit to the commission for approval a tariff offering optional residential and commercial rates for electrical services that encourage the deployment of flexible electric loads.

SEC. 8.

 Section 12819 of the Public Utilities Code is amended to read:

12819.
 (a) Every A district furnishing light, heat, or power shall not expend no funds for advertising when the advertising encourages increased consumption of the services or commodities. commodities, unless, in the district’s determination, the increased consumption of services or commodities results in a net decrease in the emissions of greenhouse gases due to the displacement of light, heat, or power resulting from the increased consumption.
(b) Nothing in this section shall This section does not prohibit a district furnishing light, heat, or power from expending funds for advertising which that encourages the more efficient operation of the facilities, works, or utilities of the district, or for advertising which that encourages the more efficient use of light, heat, or power, the conservation of energy or natural resources, or presents accurate information on the economical purchase, maintenance, or use of any appliance or device using light, heat, or power.
(c) Nothing in this section shall This section does not prohibit a district furnishing light, heat, or power from expending funds for advertising for the purposes of economic development that benefits ratepayers, retaining customers, marketing competitive services and commodities, or promoting electrotechnologies electrical technologies that enhance productivity or provide environmental benefits, within or without the district.

SEC. 9.

 Section 16480 of the Public Utilities Code is amended to read:

16480.
 (a) Every A district furnishing light, heat, or power shall not expend no funds for advertising when such that advertising encourages increased consumption of such those services or commodities. commodities, unless, in the district’s determination, the increased consumption of services or commodities results in a net decrease in the emissions of greenhouse gases due to the displacement of light, heat, or power resulting from the increased consumption.
(b) Nothing in this section shall This section does not prohibit a district furnishing light, heat, or power from expending funds for advertising which that encourages the more efficient operation of the facilities, works, or utilities of the district, or for advertising which that encourages the more efficient use of light, heat, or power, the conservation of energy or natural resources, or presents accurate information on the economical purchase, maintenance, or use of any appliance or device using light, heat, or power.

SEC. 10.

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