Chapter 10.8Home Energy and Labeling Program

Section § 25942

Explanation

This law requires the establishment of a statewide home energy rating program in California for all residential dwellings. By July 1, 1995, criteria for this program must be set, focused on consistent and accurate ratings, potential utility savings, and effective energy improvements. The program will include training for raters, quality assurance, and a public database of non-proprietary information about energy ratings. Starting January 1, 1996, only certified ratings can be conducted. The law also mandates a public information campaign about the program and requires the program's progress and energy savings to be reported biennially.

(a)CA Public Resources Code § 25942(a) On or before July 1, 1995, the commission shall establish criteria for adopting a statewide home energy rating program for residential dwellings. The program criteria shall include, but are not limited to, all of the following elements:
(1)CA Public Resources Code § 25942(a)(1) Consistent, accurate, and uniform ratings based on a single statewide rating scale.
(2)CA Public Resources Code § 25942(a)(2) Reasonable estimates of potential utility bill savings, and reliable recommendations on cost-effective measures to improve energy efficiency.
(3)CA Public Resources Code § 25942(a)(3) Training and certification procedures for home raters and quality assurance procedures to promote accurate ratings and to protect consumers.
(4)CA Public Resources Code § 25942(a)(4) In coordination with home energy rating service organization data bases, procedures to establish a centralized, publicly accessible, data base that includes a uniform reporting system for information on residential dwellings, excluding proprietary information, needed to facilitate the program. There shall be no public access to information in the data base concerning specific dwellings without the owner’s or occupant’s permission.
(5)CA Public Resources Code § 25942(a)(5) Labeling procedures that will meet the needs of home buyers, homeowners, renters, the real estate industry, and mortgage lenders with an interest in home energy ratings.
(b)CA Public Resources Code § 25942(b) The commission shall adopt the program pursuant to subdivision (a) in consultation with representatives of the Department of Real Estate, the Department of Housing and Community Development, the Public Utilities Commission, investor-owned and municipal utilities, cities and counties, real estate licensees, home builders, mortgage lenders, home appraisers and inspectors, home energy rating organizations, contractors who provide home energy services, consumer groups, and environmental groups.
(c)CA Public Resources Code § 25942(c) On and after January 1, 1996, no home energy rating services may be performed in this state unless the services have been certified, if such a certification program is available, by the commission to be in compliance with the program criteria specified in subdivision (a) and, in addition, are in conformity with any other applicable element of the program.
(d)CA Public Resources Code § 25942(d) On or before July 1, 1996, the commission shall consult with the agencies and organizations described in subdivision (b), to facilitate a public information program to inform homeowners, rental property owners, renters, sellers, and others of the existence of the statewide home energy rating program adopted by the commission.
(e)CA Public Resources Code § 25942(e) Beginning with the 1998 biennial energy conservation report required by Section 25401.1, the commission shall, as part of that biennial report, report on the progress made to implement a statewide home energy rating program. The report shall include an evaluation of the energy savings attributable to the program, and a recommendation concerning which means and methods will be most efficient and cost-effective to induce home energy ratings for residential dwellings.
home energy rating residential dwellings energy efficiency statewide rating scale utility bill savings home raters quality assurance publicly accessible database energy rating certification training and certification home buyers energy conservation report utilities commission energy savings evaluation certified energy ratings
(Amended by Stats. 1994, Ch. 553, Sec. 19. Effective January 1, 1995.)

Section § 25943

Explanation

By March 1, 2010, the commission is tasked with developing a program to save energy in existing buildings that are not up to current energy standards. This program can include a variety of techniques, such as energy assessments and financing options, with a focus on making energy savings accessible and promoting public awareness.

The commission will adopt a policy to ensure high-quality building work, set consumer protection guidelines, and coordinate with various stakeholders, including utility companies and community groups. They are to hold public hearings across the state and consider various factors like energy savings, cost-effectiveness, and public education when developing the program.

The program aims to minimize costs and avoid negatively impacting home sales or business operations and will promote job training in disadvantaged communities. Energy assessments must be certified, and the commission will update the program criteria periodically. They need legislative approval if any program elements require expanded authority.

(a)Copy CA Public Resources Code § 25943(a)
(1)Copy CA Public Resources Code § 25943(a)(1) By March 1, 2010, the commission shall establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. This program shall comprise a complementary portfolio of techniques, applications, and practices that will achieve greater energy efficiency in existing residential and nonresidential structures that fall significantly below the current standards in Title 24 of the California Code of Regulations, as determined by the commission.
(2)CA Public Resources Code § 25943(a)(2) The comprehensive program may include, but need not be limited to, a broad range of energy assessments, building benchmarking, energy rating, cost-effective energy efficiency improvements, public and private sector energy efficiency financing options, public outreach and education efforts, and green workforce training.
(3)CA Public Resources Code § 25943(a)(3) The commission shall adopt, implement, and enforce a responsible contractor policy for use across all ratepayer-funded energy efficiency programs that involve installation or maintenance, or both installation and maintenance, by building contractors to ensure that retrofits meet high-quality performance standards and reduce energy savings lost or foregone due to poor-quality workmanship.
(4)CA Public Resources Code § 25943(a)(4) The commission, in consultation with the Public Utilities Commission, shall establish consumer protection guidelines for energy efficiency products and services.
(b)CA Public Resources Code § 25943(b) To develop and implement the program specified in subdivision (a), the commission shall do both of the following:
(1)CA Public Resources Code § 25943(b)(1) Coordinate with the Public Utilities Commission and consult with representatives from the Bureau of Real Estate, the Department of Housing and Community Development, investor-owned and publicly owned utilities, local governments, real estate licensees, commercial and homebuilders, commercial property owners, small businesses, mortgage lenders, financial institutions, home appraisers, inspectors, energy rating organizations, consumer groups, environmental and environmental justice groups, and other entities the commission deems appropriate.
(2)CA Public Resources Code § 25943(b)(2) Hold at least three public hearings in geographically diverse locations throughout the state.
(c)CA Public Resources Code § 25943(c) In developing the requirements for the program specified in subdivision (a), the commission shall consider all of the following:
(1)CA Public Resources Code § 25943(c)(1) The amount of annual and peak energy savings, greenhouse gas emission reductions, and projected customer utility bill savings that will accrue from the program.
(2)CA Public Resources Code § 25943(c)(2) The most cost-effective means and reasonable timeframes to achieve the goals of the program.
(3)CA Public Resources Code § 25943(c)(3) The various climatic zones within the state.
(4)CA Public Resources Code § 25943(c)(4) An appropriate method to inform and educate the public about the need for, benefits of, and environmental impacts of, the comprehensive energy efficiency program.
(5)CA Public Resources Code § 25943(c)(5) The most effective way to report the energy assessment results and the corresponding energy efficiency improvements to the owner of the residential or nonresidential building, including, among other things, the following:
(A)CA Public Resources Code § 25943(c)(5)(A) Prioritizing the identified energy efficiency improvements.
(B)CA Public Resources Code § 25943(c)(5)(B) The payback period or cost-effectiveness of each improvement identified.
(C)CA Public Resources Code § 25943(c)(5)(C) The various incentives, loans, grants, and rebates offered to finance the improvements.
(D)CA Public Resources Code § 25943(c)(5)(D) Available financing options including all of the following:
(i)CA Public Resources Code § 25943(c)(5)(D)(i) Mortgages or sales agreement components.
(ii)CA Public Resources Code § 25943(c)(5)(D)(ii) On-bill financing.
(iii)CA Public Resources Code § 25943(c)(5)(D)(iii) Contractual property tax assessments.
(iv)CA Public Resources Code § 25943(c)(5)(D)(iv) Home warranties.
(6)CA Public Resources Code § 25943(c)(6) Existing statutory and regulatory requirements to achieve energy efficiency savings and greenhouse gas emission reductions.
(7)CA Public Resources Code § 25943(c)(7) A broad range of implementation approaches, including both utility and nonutility administration of energy efficiency programs, especially the use of not-for-profit and community-based organizations that assist with deployment in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(8)CA Public Resources Code § 25943(c)(8) Workforce development and job training for residents in disadvantaged communities, including veterans, at-risk youth, and members of the state and local community conservation corps.
(9)CA Public Resources Code § 25943(c)(9) Any other considerations deemed appropriate by the commission.
(d)CA Public Resources Code § 25943(d) The program developed pursuant to this section shall do all of the following:
(1)CA Public Resources Code § 25943(d)(1) Minimize the overall costs of establishing and implementing the comprehensive energy efficiency program requirements.
(2)CA Public Resources Code § 25943(d)(2) Ensure, for residential buildings, that the energy efficiency assessments, ratings, or improvements do not unreasonably or unnecessarily affect the home purchasing process or the ability of individuals to rent housing. A transfer of property subject to the program implemented pursuant to this section shall not be invalidated solely because of the failure of a person to comply with a provision of the program.
(3)CA Public Resources Code § 25943(d)(3) Ensure, for nonresidential buildings, that the energy improvements do not have an undue economic impact on California businesses.
(4)CA Public Resources Code § 25943(d)(4) Determine, for residential buildings, the appropriateness of the Home Energy Rating System (HERS) program to support the goals of this section and whether there are a sufficient number of HERS-certified raters available to meet the program requirements.
(5)CA Public Resources Code § 25943(d)(5) Determine, for nonresidential structures, the availability of an appropriate cost-effective energy efficiency assessment system and whether there are a sufficient number of certified raters or auditors available to meet the program requirements.
(6)CA Public Resources Code § 25943(d)(6) Coordinate with the California Workforce Investment Board, the Employment Training Panel, the California Community Colleges, and other entities to ensure a qualified, well-trained workforce is available to implement the program requirements.
(7)CA Public Resources Code § 25943(d)(7) Promote greater project penetration in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code, including the deployment of energy efficiency surveys and audits, energy efficiency retrofits and upgrades, weatherization, and followup project inspections by state-certified community conservation corps and other community-based workforce development organizations that serve residents of disadvantaged communities, including veterans and disadvantaged youth.
(8)CA Public Resources Code § 25943(d)(8) Coordinate with, and avoid duplication of, existing proceedings of the Public Utilities Commission and programs administered by utilities.
(e)CA Public Resources Code § 25943(e) A home energy rating or energy assessment service does not meet the requirements of this section unless the service has been certified by the commission to be in compliance with the program criteria developed pursuant to this section and is in conformity with other applicable elements of the program.
(f)Copy CA Public Resources Code § 25943(f)
(1)Copy CA Public Resources Code § 25943(f)(1) The commission shall periodically update the criteria and adopt any revision that, in its judgment, is necessary to improve or refine program requirements after receiving public input.
(2)CA Public Resources Code § 25943(f)(2) On or before January 1, 2017, and at least once every three years thereafter, the commission shall adopt an update to the program in furtherance of achieving a cumulative doubling of statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030.
(g)CA Public Resources Code § 25943(g) Before implementing an element of the program developed pursuant to subdivision (a) that requires the expansion of statutory authority of the commission or the Public Utilities Commission, the commission and the Public Utilities Commission shall obtain legislative approval for the expansion of their authorities.
(h)CA Public Resources Code § 25943(h) The commission shall report on the status of the program in the integrated energy policy report pursuant to Section 25302.
(i)CA Public Resources Code § 25943(i) The commission shall fund activities undertaken pursuant to this section from the Federal Trust Fund consistent with the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or other sources of nonstate funds available to the commission for the purposes of this section.
(j)CA Public Resources Code § 25943(j) For purposes of this section, the following terms mean the following:
(1)CA Public Resources Code § 25943(j)(1) “Energy assessment” means a determination of an energy user’s energy consumption level, relative efficiency compared to other users, and opportunities to achieve greater efficiency or improve energy resource utilization.
(2)CA Public Resources Code § 25943(j)(2) “Energy efficiency” means delivering equal or more services with less energy input from an energy source.
energy savings residential buildings nonresidential buildings energy efficiency energy assessments building benchmarking contractor policy consumer protection guidelines public hearings greenhouse gas reductions climatic zones financial incentives workforce training disadvantaged communities American Recovery and Reinvestment Act funding
(Amended by Stats. 2015, Ch. 547, Sec. 8. (SB 350) Effective January 1, 2016.)