Sacramento Report

by Keith Dunn

You don’t have to look far or long to find a marketing brochure, newsletter or TV report concerning the “greening” of California’s commercial and residential housing. In recent years, California lawmakers have increased their efforts to further define how Californians can continue to reduce and conserve energy consumption in public and commercial buildings, as well as in their homes.

The State Legislature has introduced a number of bills to mandate the reduction of energy use in private buildings. AB 2112 (Saldana, D-San Diego) would require “zero net energy” for residential developments and would require all new buildings to generate 50% of used power onsite (using “sustainable” technology). AB 1065 (Lieber, D-Mountain View) would require that all new buildings use 50% less energy by 2020 and 80% less energy by 2030. SB 375 (Steinberg, D-Sacramento) is legislation that proposes to withhold transportation funding from local governments as an enticement to try and direct them to reduce greenhouse gas emissions.

While these are laudable efforts, legislative mandates for private development potentially reduce private industry incentives and economic benefits to local communities, landowners and tenants. Simultaneously, these proposals place requirements on private industry at a time when technology is lacking.

These legislative efforts emulate Governor Arnold Schwarzenegger’s December 2004 Executive Order, which requires the state to reduce grid-based energy usage in state-owned buildings 20% by 2015, and, in so doing, to reduce associated greenhouse gas emissions. Specifically, he has ordered that the state commit to aggressive action to reduce state building electricity usage by retrofitting, building and operating the most energy and resource efficient buildings by taking all cost-effective measures described in the Green Building Action Plan for facilities owned, funded or leased by the state, and to encourage cities, counties and schools to do the same.

He has also ordered that state agencies, departments, and other entities under the direct executive authority of the governor cooperate in taking measures to reduce grid-based energy purchases for state-owned buildings 20% by 2015, through cost-effective efficiency measures and distributed generation technologies. These measures should include but not be limited to: designing, constructing, and operating all new and renovated state-owned facilities paid for with state funds as “LEED Silver” (Leadership in Energy and Environmental Design) or higher certified buildings; identifying the most appropriate financing and project delivery mechanisms to achieve these goals; seeking out office space leases in buildings with a U.S. EPA Energy Star rating; and purchasing or operating Energy Star electrical equipment whenever cost-effective.

He also instructed the Division of the State Architect in the Department of General Services to adopt guidelines by December 31, 2005, to enable and encourage schools built with state funds to be resource and energy efficient. The California Public Utilities Commission was urged to apply its energy efficiency authority to: support a campaign to inform building owners and operators about the compelling economic benefits of energy efficiency measures; improve commercial building efficiency programs to help achieve the 20% goal; and submit a biennial report to the governor commencing in September 2005 on progress toward meeting these goals.

The California Energy Commission had to propose, by July 2005, benchmarking methodology and building commissioning guidelines to increase energy efficiency in government and private commercial buildings. The CEC must also undertake all actions within its authority to: increase efficiency by 20% by 2015, compared to Titles 20 and 24 nonresidential standards adopted in 2003; collaborate with the building and construction industry state licensing boards to ensure building and contractor compliance; and promptly submit its report as per AB 549 (Statutes of 2001) on strategies for greater energy and peak demand savings in existing buildings.

The California Public Employees Retirement System and State Teachers Retirement System were requested to target resource efficient buildings for real-estate investments and commit clean technology funds to advance sustainable and efficiency technologies. Other entities of state government not under the governor’s direct executive authority, including the University of California, California State University, California Community Colleges, constitutional officers, legislative and judicial branches, and CPUC, were requested to actively participate in this effort.

Commercial building owners were also encouraged to take aggressive action to reduce electricity usage by retrofitting, building and operating the most energy and resource efficient buildings by taking measures described in the Green Building Action Plan.

In line with this Executive Order, in September 2006 Governor Schwarzenegger signed AB 2160 (Lieu, D-Torrance). That law requires the CEC to report on the state’s efforts to cut energy use in state-owned buildings 20% by 2015.

The California Apartment Association will continue to work to identify and create legislative and regulatory opportunities to encourage market-based solutions and economic incentives for apartment owners and tenants to participate in the green revolution. At the same time, CAA will work to protect the industry against unattainable standards that remain out of reach, given current technology.

 

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The opinions expressed in this article are those of the authors and do not necessarily reflect the viewpoint of SFAA or SF Apartment Magazine. Keith Dunn is one of CAA’s two contract lobbyists. He is the owner of Dunn Consulting, a full-service governmental advocacy and strategic counsel lobbying firm based in Sacramento. Copyright © 2008 SF Apartment Magazine. All rights reserved.