Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1477

Introduced by Senator Stern

February 16, 2018

An act to add Chapter 11.5 (commencing with Section 25970) to Division 15 of the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1477, as amended, Stern. Zero-emissions buildings and sources of heat energy.
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.
This bill would establish the Zero-Emissions Heating Market Transformation Fund in the State Treasury and would require moneys in the fund, upon appropriation by the Legislature, to be expended for the design and implementation of market development activities for highly efficient and zero-onsite-emissions building technologies, for incentives for new buildings to reduce the emissions of greenhouse gases by more than is required by law, and for incentives for existing buildings to adopt zero-emissions building technologies. The bill would require the Public Utilities Commission to authorize incentive programs that will transform the state’s market for low-emissions space and water heating technologies. require the commission to develop a statewide market transformation initiative to transform the state’s market for low-emission space and water heating equipment for new and existing residential and nonresidential buildings. The bill would require the commission, as a part of the initiative, to identify and target key low-emission space and water heating technologies that would assist the state in meeting its greenhouse gas emissions reduction goals. The bill would require the commission, in consultation with the Public Utilities Commission, to develop and administer the Zero-Emission Building Program to provide incentives to eligible applicants, as defined, for the deployment of near-zero emission building technologies to significantly reduce the emissions of greenhouse gases from buildings, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 11.5 (commencing with Section 25970) is added to Division 15 of the Public Resources Code, to read:
CHAPTER  11.5. Zero-Emissions Buildings Building Market Transformation
25970.

The Public Utilities Commission shall authorize incentive programs that will transform the state’s market for low-emissions space and water heating technologies.

25971.

There is hereby established in the State Treasury the Zero-Emissions Heating Market Transformation Fund. Moneys in the fund, upon appropriation by the Legislature, shall be expended by the commission to design and implement market development activities for highly efficient and zero-onsite-emissions building technologies, including electric heat pumps, and to offer incentives for new buildings to reduce the emissions of greenhouse gases by more than is required by law and for existing buildings to adopt zero-emissions building technologies to further the goal of achieving the state’s air quality and climate goals.

Article  1. Low-Emission Space and Water Heating Equipment

25970.
 (a) The commission shall develop a statewide market transformation initiative to transform the state’s market for low-emission space and water heating equipment for new and existing residential and nonresidential buildings through upstream market development, consumer education, contractor and vendor training, and the provision of upstream and midstream incentives to install low-emission space and water heating equipment in existing and new buildings, with technologies identified pursuant to subdivision (b).
(b) As a part of the initiative, the commission shall identify and target key low-emission space and water heating equipment technologies that would assist the state in achieving the state’s greenhouse gas emissions reduction goal for 2030 and other long-term greenhouse gas emissions reduction goals established by the Legislature. In identifying and targeting these technologies, the commission shall give consideration to technologies that improve the health and safety of, and energy affordability to, low-income households.

Article  2. Zero-Emissions Building Incentives

25975.
 (a) For purposes of this article, the following definitions apply:
(1) “Disadvantaged community” means a community identified as a disadvantaged community pursuant to Section 39711 of the Health and Safety Code.
(2) “Low-income multifamily property” means a multifamily residential property containing units constructed for lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(3) “Eligible applicants” mean either of the following:
(A) Owners or developers of new residential or new commercial buildings.
(B) Owners or developers of new or existing affordable housing, low-income multifamily properties, and residential buildings in disadvantaged communities. For an existing affordable building, an owner or operator is an eligible applicant if the owner or operator is engaging in a renovation of the building that requires compliance with the California Building Code (Title 24 of the California Code of Regulations).
(4) (A) “Near-zero-emission building technology” means technology that reduces both of the following:
(i) The energy demands of a building on the electrical or gas distribution system.
(ii) The direct and indirect emissions of greenhouse gases from buildings.
(B) Near-zero-emission building technology includes a single technology, such as heat pumps, solar thermal systems, or advanced energy efficiency systems, and a combination of technologies, such as solar photovoltaic system with energy storage systems.

25975.1.
 (a) The commission, in consultation with the Public Utilities Commission, shall develop and administer a “Zero Emissions Building Program” to provide incentives to eligible applicants for the deployment of near-zero-emission building technologies to significantly reduce the emissions of greenhouse gases from those buildings beyond standards set forth in other laws or regulations.
(b) (1) The amount of the incentive provided pursuant to the program shall be based on the projected amount of reduction in the emissions of greenhouse gases resulting from the installation of the near-zero-emission building technology beyond the standards set forth in other laws or regulations.
(2) To encourage the adoption of near-zero-emission building technologies in residential and commercial buildings in disadvantaged communities, the program shall provide higher incentives for the installation of those technologies in residential and commercial buildings in disadvantaged communities than for that installation in new residential and new commercial buildings in communities that are not disadvantaged communities.