Sacramento Report
The Government’s Green Squeeze
by Keith Dunn
There is no doubt that the green construction trend continues to gain momentum in California. In recent years, the residential construction industry in California has included some green building practices as renters continue to respond positively and government agencies have started encouraging more energy and water efficient units. California Apartment Association members continue to meet this market opportunity with innovative building techniques and efficiencies while resisting one-size-fits-all mandates that do not allow for these market-based decisions.
There are many reasons a potential tenant may choose green buildings ahead of other traditional construction units. The primary reason that most tenants seek out a green building are the advantages for lower utility bills that come with a green building design. Additionally, a reduced impact on the environment during the building process or simply the availability of a healthier living environment may provide that extra incentive to a potential tenant—especially in those cases where a family may have a child with asthma and a green building provides better ventilation systems and other positive design qualities. Also the inclusion of green building and the development of green building standards for rental units is clearly becoming increasingly popular with local government agencies because of the potential to produce regional gains in water conservation and reductions in energy use.
California lawmakers remain busy in 2009 and have increased their legislative efforts to further define how Californians must reduce and conserve energy consumption in residential buildings. Most of their efforts are focused on AB 32, legislation that was signed by the governor in 2007. It establishes an enforceable cap on statewide greenhouse emissions by forcing the reduction in emissions to 1990 levels on or before the year 2020. AB 32 further provides the California Air Resources Board with a wide variety of tools, including market-based approaches, along with strong enforcement authority, to ensure that the state meets the emission limits. CARB will begin enforcing limits on emissions starting in 2012. Legislators and the state attorney general, however, have started to require local agencies to account for greenhouse gas emissions in advance of the 2012 deadline.
AB 32 includes several key deadlines:
- January 1, 2009
CARB adopted a “Scoping Plan” to achieve maximum reductions by 2020.
- January 1, 2010
CARB will adopt regulations and will begin to enforce early action measures.
- January 1, 2011
CARB will adopt regulations to implement the 2009 Scoping Plan.
- January 1, 2012
CARB will begin enforcement of emissions limits.
At this point, many industry groups have found that the AB 32 Scoping Plan represents a far-reaching regulatory policy that imposes new costs on virtually every product and service used by Californians. Most industry groups have publicly commented that the Scoping Plan ignores higher costs for electricity, fuel, food and building products. At the same time, the Scoping Plan concludes that future savings from energy efficiency improvements will offset these cost increases. It also concludes that there will be new jobs in an expanding economy as a result of its implementation.
On a similar note, legislators continue to look for ways to reduce greenhouse gas emissions. Last year, CAA successfully worked to oppose legislation that sought to mandate the reduction of energy use in residential buildings without allowing for economic considerations. AB 2112 would have required “Zero Net Energy” for residential developments and would have required all new residential buildings to generate 50% of used power onsite (using sustainable technology). The governor vetoed this bill.
The effort has gained a new life in 2009 with the introduction of AB 212, which would again require all newly constructed homes to be zero-net energy starting in 2020. While these may be laudable goals, any legislative mandates for private development potentially reduces private industry incentives and economic benefits to local communities, land owners and tenants. Simultaneously, these proposals place mandates on private industry at a time when the industry is in a slump and technology is lacking. While these legislative efforts may try to emulate Governor Schwarzenegger’s Executive Order, which requires the State of California to reduce grid-based energy usage in state-owned buildings by 20% on or before 2015, legislative efforts should allow for economic considerations and market forces to be considered.
CAA 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 from the current technology. Watch CAA’s websites for updates on this important legislation.
The opinions expressed in this article are those of the author, and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Keith Dunn is CAA’s contract lobbyist. He is the owner of Dunn Consulting, a full-service governmental advocacy and strategic counsel lobbying firm based in Sacramento. Copyright © 2009 by Black Point Press. All rights reserved.