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SB-795 Energy: building energy efficiency: heating, ventilation, and air-conditioning equipment sale registry and compliance tracking system: electronic statewide compliance documentation data repository.(2023-2024)

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Date Published: 07/12/2023 09:00 PM
SB795:v95#DOCUMENT

Amended  IN  Assembly  July 12, 2023
Amended  IN  Assembly  June 19, 2023
Amended  IN  Senate  April 27, 2023
Amended  IN  Senate  March 30, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 795

Introduced by Senator Stern
(Coauthor: Senator Cortese)

February 17, 2023

An act to add Sections 25402.20 and 25402.21 to the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 795, as amended, Stern. Energy: building energy efficiency: heating, ventilation, and air-conditioning equipment sale registry and compliance tracking system: electronic statewide compliance documentation data repository.
Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, building design and construction standards and energy and water conservation design standards for new residential and nonresidential buildings. Existing law requires the commission to prescribe, by regulation, standards for minimum levels of operating efficiency to promote the use of energy-efficient and water-efficient appliances whose use requires a significant amount of energy or water on a statewide basis. Existing law requires the commission to approve a plan that will promote compliance with specified regulations in the installation of central air-conditioning and heat pumps and authorizes the commission to adopt regulations to increase compliance with permitting and inspection requirements for central air-conditioning and heat pumps, and associated sales and installations, consistent with that plan.
This bill would require the commission to develop and implement an electronic statewide heating, ventilation, and air-conditioning (HVAC) equipment sales registry and compliance tracking system to allow the Contractors State License Board and other responsible enforcement agencies to cross-check the purchase of HVAC equipment with the submittal of permit compliance verification documents in order to identify contractors and other installers that fail to comply with the law. The bill would specify that the HVAC equipment sales registry and compliance tracking system is not to be publicly available and available, that certain information in the registry and compliance tracking system is confidential and not to be disclosed to the public. public, and that other information that is in the system is a public record and shall be made available to the public in an electronic format upon request.
This bill would also require the commission to develop and implement an electronic statewide compliance documentation data repository for the installation of HVAC equipment and lighting controls with certain capabilities. The bill would specify that the repository is not to be publicly available and that certain information in the data repository is confidential and not to be disclosed to the public.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The efficiency of heating, ventilation, and air-conditioning equipment (HVAC) is highly dependent on the quality of its installation. A report by the State Energy Resources Conservation and Development Commission (Energy Commission) found that 85 percent of replacement HVAC systems are installed incorrectly, resulting in a 20 to 30 percent increase in energy use.
(b) California’s Building Energy Efficiency Standards codified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations (California Energy Code) establish requirements for installation and acceptance test documentation to verify that HVAC and other building construction that impacts building energy efficiency are installed and performing correctly.
(c) Reports by the Energy Commission and by the Public Utilities Commission have found that permits are obtained for HVAC replacements as little as 10 percent of the time, and that contractors comply with the California Energy Code’s quality installation requirements as little as 15 percent of the time. It is estimated that by correcting these problems, peak energy demand could be decreased by 400 megawatts.
(d) When permits are not obtained, there is no way to enforce the California Energy Code’s requirements. Even when permits are obtained, local building departments or officials are often unable to effectively enforce or verify compliance with those requirements due to the complexity of the California Energy Code and a lack of adequate resources. As a result, Acceptance Test Technician Certification providers have reported that the vast majority of jurisdictions are not consistently enforcing acceptance test and other California Energy Code compliance documentation requirements, with the resultant lack of demand making these certification programs unsustainable and at risk of collapsing.
(e) A single, accessible electronic state compliance documentation data repository with the ability to automatically provide building inspectors verification that all required California Energy Code compliance data have been submitted would significantly improve the effectiveness of code enforcement when permits are obtained and reduce the cost of enforcement and compliance.
(f) Paired with the electronic state compliance documentation data repository, a central HVAC equipment sales registry and compliance tracking system is also required to address the pervasive problem of underground construction work performed without permits and without complying with acceptance test requirements in the California Energy Code. A sales registry would allow cross-checking the purchase of equipment with the submittal of permit compliance verification data.
(g) If California is going to meet its energy efficiency and greenhouse gas emissions reduction goals, it needs to take concrete steps to improve and simplify enforcement of the California Energy Code compliance documentation requirements.
(h) The 2015 Existing Building Energy Efficiency Action Plan Update states that “[a]ddressing the application, compliance and enforcement of building standards in existing buildings is a high priority” and calls for improving retrofit compliance with permitting and code requirements to 90 percent by 2020.
(i) To meet this compliance goal, the 2016 Existing Building Energy Efficiency Action Plan recommends development of an HVAC equipment sales registry that can be used to track HVAC sales to ensure that permit requirements are being followed for all HVAC installations.
(j) An HVAC equipment sales registry and compliance tracking system would address numerous California Energy Code compliance issues, including permit noncompliance, noncompliance with the California Energy Code compliance documentation requirements, noncompliance with the Home Energy Rating System testing and acceptance testing requirements, unlicensed contractors, enforcement limitations on the Contractors State License Board and local building departments, and unfair competition from contractors who do not follow the law.
(k) The lack of compliance and enforcement hurts contractors that comply with the California Energy Code who must bid against contractors that can cut costs by ignoring these requirements altogether.
(l) The Energy Commission has begun internal development of a compliance document repository database storage structure and data extraction processes, and has entered into a contract with an outside consultant to support this development. However, current proposals for the compliance document repository would not ensure accessibility by local building officials, and would not provide an easily accessible, single source for determining if a construction project has complied with the compliance documentation requirements set forth in the California Energy Code. It would also not be compatible with efforts to increase permit compliance through tracking HVAC equipment from sale to the completion of the compliance documentation required by the California Energy Code. Energy Commission staff have raised concerns that the commission does not currently have statutory authority to create and operate a database that would give access to compliance information to local building officials.

SEC. 2.

 Section 25402.20 is added to the Public Resources Code, to read:

25402.20.
 (a) (1) The commission shall, through its normal rulemaking process and subject to available funding, including funding from the federal government, and public comment, develop and implement an electronic statewide heating, ventilation, and air-conditioning (HVAC) equipment sales registry and compliance tracking system to allow the Contractors State License Board and other responsible enforcement agencies to cross-check the purchase of HVAC equipment with the submittal of permit compliance verification documents in order to identify contractors or other installers that fail to comply with permit requirements and the compliance verification requirements established in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations.
(2) The commission shall retain discretion to determine the availability of funding through its normal budget process, but shall make good faith efforts to secure necessary funding.
(3) The commission shall seek and apply for federal funding for development and implementation of the HVAC equipment sales registry and compliance tracking system if that funding opportunity is made available.
(b) (1) The commission may share information contained in the HVAC equipment sales registry and compliance tracking system with local building officials and other enforcement agencies, including the Contractors State License Board. Any information collected or shared by the commission pursuant to this section shall be collected or shared in compliance with the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(2) Information contained in the HVAC equipment sales registry and compliance tracking system that is confidential pursuant to paragraph (2) of subdivision (c) shall be kept confidential by a local building official or other enforcement agency that is shared the information pursuant to paragraph (1).
(c) (1) The HVAC equipment sales registry and compliance tracking system shall not be publicly available. The public may request access to Except as provided in paragraph (2) and unless prohibited by other law, information in the registry and compliance tracking system that, except as provided in paragraph (2), that is a public record pursuant to Article 3 (commencing with Section 7922.570) of Chapter 1 of Part 3 of Division 10 of Title 1 of the Government Code. Code is not exempt from disclosure and shall be made available to the public in an electronic format upon request.
(2) Information in the HVAC equipment sales registry and compliance tracking system that provides personal information, aggregate manufacturer-specific sales data, or trade secrets is confidential and not a public record, and shall not be disclosed to the public pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(3) Notwithstanding Article 3 (commencing with Section 7922.570) of Chapter 1 of Part 3 of Division 10 of Title 1 of the Government Code, information or data in the HVAC equipment sales registry and compliance tracking system is not required to be disclosed in its original electronic form under the California Public Records Act.
(d) As part of each integrated energy policy report adopted pursuant to Section 25302, the commission shall describe the implementation status of the HVAC equipment sales registry and compliance tracking system. The report shall identify any barriers to implementing the HVAC equipment sales registry and compliance tracking system that may need to be addressed by the Legislature, including funding requirements or conflicts in law.

SEC. 3.

 Section 25402.21 is added to the Public Resources Code, to read:

25402.21.
 (a) (1) The commission shall, through its normal rulemaking process and subject to available funding, including funding from the federal government, and public comment, develop and implement an electronic statewide compliance documentation data repository for Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations for the installation of heating, ventilation, and air-conditioning (HVAC) equipment and lighting controls.
(2) The commission shall retain discretion to determine the availability of funding through its normal budget process, but shall make good faith efforts to secure necessary funding.
(3) The commission shall seek and apply for federal funding for development and implementation of the electronic statewide compliance documentation data repository if that funding opportunity is made available.
(b) The electronic statewide compliance documentation data repository shall have all the following capabilities:
(1) Collect and store compliance, installation, and acceptance test documentation data required under Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations for the installation of HVAC equipment and lighting controls.
(2) Allow local building departments and other responsible enforcement agencies to review compliance, installation, and acceptance test documentation data for individual projects in their jurisdiction to verify that all required documentation has been submitted.
(3) Be linked to or integrated with the HVAC equipment sales registry and compliance tracking system implemented pursuant to Section 25402.20.
(4) Allow the commission to aggregate data to evaluate compliance, inform the development of building, appliance, and demand flexibility standards, and inform program implementation and policy development.
(c) (1) The commission may share information contained in the electronic statewide compliance documentation data repository with local building officials and other agencies, including the Contractors State License Board. In collecting or sharing information pursuant to this section, the commission shall comply with the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(2) Information contained in the electronic statewide compliance documentation data repository that is confidential pursuant to paragraph (2) of subdivision (d) shall be kept confidential by a local building official or other enforcement agency that is shared the information pursuant to paragraph (1).
(d) (1) The electronic statewide compliance documentation data repository shall not be publicly available. The public may request access to information in the registry and compliance tracking system that, except as provided in paragraph (2), is a public record pursuant to Article 3 (commencing with Section 7922.570) of Chapter 1 of Part 3 of Division 10 of Title 1 of the Government Code.
(2) Information in the electronic statewide compliance documentation data repository that provides personal information, aggregate manufacturer-specific sales data, or trade secrets is confidential, not a public record, and shall not be disclosed to the public pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(3) Notwithstanding Article 3 (commencing with Section 7922.570) of Chapter 1 of Part 3 of Division 10 of Title 1 of the Government Code, information or data in the electronic statewide compliance documentation data repository is not required to be disclosed in its original electronic form under the California Public Records Act.
(e) As part of each integrated energy policy report adopted pursuant to Section 25302, the commission shall describe the implementation status of the electronic statewide compliance documentation data repository. The report shall identify any barriers to implementing the electronic statewide compliance documentation data repository that may need to be addressed by the Legislature, including funding requirements, conflicts in law, or barriers and solutions to HVAC permitting compliance.

SEC. 4.

 The Legislature finds and declares that Section 2 of this act, which adds Section 25402.20 to the Public Resources Code, and Section 3 of this act, which adds Section 25402.21 to the Public Resource Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
To maintain the confidentiality of personal information for the protection of the privacy of individuals and to protect the confidentiality of trade secrets and proprietary information, it is necessary to enact legislation that limits access to the HVAC equipment sales registry and compliance tracking system and the electronic statewide compliance documentation data repository by the public. For these same reasons, it is necessary to also limit the public’s right of access to certain information contained in the registry and compliance tracking system and the data repository.