California Senate Bill SB488 Introduced / Bill

 BILL NUMBER: SB 488INTRODUCED BILL TEXT INTRODUCED BY Senator Pavley FEBRUARY 26, 2009 An act to amend Section 2079.10 of the Civil Code, and to add Chapter 10.9 (commencing with Section 25945) to Division 15 of the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST SB 488, as introduced, Pavley. Energy: energy efficiency financing. (1) Existing law requires the State Energy Resources Conservation and Development Commission to establish criteria for adopting a statewide home energy rating program for residential dwellings. Existing law establishes the Renewable Energy Resources Program that is administered by the commission to address global warming and climate change by increasing the amount of electricity generated from eligible renewable resources. Existing law establishes various grant, loan, and loan guarantee programs to assist specified entities in implementing energy conservation and efficiency measures. This bill would require the commission, by July 1, 2010, in consultation with specified entities, to establish an ongoing procedure to develop an energy efficiency financing program to allow residential, commercial, industrial, and municipal participants to finance energy efficiency improvements funded through cost avoidance of the energy saved by the implemented measure. The commission would be required, beginning July 1, 2011, and annually thereafter, to submit to the Legislature a report on the progress of the program. (2) Existing law provides that if an informational booklet concerning home energy rating is delivered to a transferee of a real property, the seller or broker is not required to provide information that is additional to that contained in the booklet. This bill would provide that a seller or broker is not required to provide additional information regarding home energy efficiency if the transferee of a real property has received, as an alternative, any other information regarding energy efficiency produced by a utility provider or a public agency. 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 2079.10 of the Civil Code is amended to read: 2079.10. (a) If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code,  or any other information regarding energy efficiency produced by a utility provider or public agency,  is delivered to a transferee in connection with the transfer of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide  additional  information  additional to that contained in the booklet  concerning home energy  ratings,   efficiency,  and the information in the booklet  or produced by a utility provider or public agency  shall be deemed to be adequate to inform the transferee about  the existence of a statewide  home energy  rating program.   efficiency improvement and conservation programs.  (b) Notwithstanding subdivision (a),  nothing in  this section  alters   does not alter  any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property. (c) If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a transferee in connection with the transfer of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the transferee about water conservation and water conservation programs. SEC. 2. Chapter 10.9 (commencing with Section 25945) is added to Division 15 of the Public Resources Code, to read: CHAPTER 10.9. ENERGY EFFICIENCY FINANCING PROGRAM 25945. The Legislature finds and declares all of the following: (a) The Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) requires the State Air Resources Board to design emissions reduction measures in a manner that minimizes costs and maximizes benefits for California's economy, maximizes additional environmental and economic cobenefits for California, and complements the state's efforts to improve air quality. (b) To achieve the goals of the Global Warming Solutions Act of 2006, every sector must explore opportunities to reduce energy consumption and related greenhouse gas emissions. (c) There exist significant opportunities for cost-effective energy efficiency improvements in all types of existing structures, including residential, commercial, industrial, and municipal. (d) California needs a systematic approach to providing every utility-using structure in the state with an energy audit and opportunity to increase energy efficiency by 2020, to meet the goals of the Global Warming Solutions Act of 2006. (e) Utilities are the most logical industry through which a comprehensive audit and improvement program should be promulgated. (f) Removing market barriers such as upfront costs and allowing utility-administered funding for energy efficiency improvement financing programs will eliminate key barriers that keep building owners, renters, lessees, and municipalities from making the energy efficiency improvements necessary to meet these goals. 25945.5. (a) On or before July 1, 2010, the commission shall establish an ongoing procedure to develop an energy efficiency financing program that will allow residential, commercial, industrial, and municipal participants to finance energy efficiency improvements funded through cost avoidance of the energy saved by the implemented measure. The financing shall be fixed to the meter location to ensure that the beneficiary of the improvement repay the cost, regardless of ownership or occupancy. (b) In determining the elements of the energy efficiency financing program, the commission shall consider all of the following: (1) The need for expanding existing energy audit programs to provide appropriate baseline energy information for each meter. Program expansion may include any of the following: (A) Expanding existing public goods charge programs. (B) Utilizing appropriate federal energy efficiency grants and programs. (C) Authorizing other sources of program funding. (2) The appropriate energy efficient measures that provide energy savings offsetting the cost of the measure within its useful life, may include all of the following: (A) Lighting, heating, cooling, and other energy efficient equipment. (B) Weatherization. (C) Distributed generation systems. (D) Water-saving features and devices. (3) Utility billing system requirements. (4) Appropriate monthly charges for each specified measure, including consideration of the availability of applicable government run and nongovernmental assistance and loan programs as well as rebates. (5) Appropriate program charges. (6) The expected value of establishing this program, including all of the following: (A) Reductions in greenhouse gas emissions. (B) Reductions in annual and peak energy demands. (C) Reduction in customer utility bills. (7) The appropriate methods for informing and educating the public as to the new program. (8) Appropriate disclosures and notifications. (9) Any other considerations deemed appropriate by the Public Utilities Commission. (c) Prior to adopting an energy efficiency financing program, the commission shall do both of the following: (1) Consult with representatives from the Contractors State Licensing Board, the Department of Real Estate, the Department of Housing and Community Development, the Public Utilities Commission, investor-owned utilities, publicly owned utilities, cities and counties, real estate licensees, home builders, mortgage lenders, home appraisers and inspectors, energy efficient product vendors, home energy rating organizations, consumer groups, environmental and environmental justice groups. (2) Hold at least three public hearings in geographically diverse locations throughout the state. (d) Beginning July 1, 2011, and annually thereafter, the commission shall submit a report to the Legislature detailing the progress of the program, the number of metered users that took advantage of the financing program, the amount of energy savings resulting from the implemented measures, and an estimate of the greenhouse gas reduction resulting from the program. The report may also contain recommendations for expanding or otherwise improving the program.