Do State Agencies Have Too Much Power?
October 16th, 2012 by Fiedler Group
Earlier this year the California Chamber of Commerce raised concern that California Businesses are put at a competitive disadvantage due to a proliferation of “progressive” sustainability and energy efficient regulations that numerous California state agencies have introduced.
Background
California’s energy efficiency building standards are created and implemented by agencies seeking to ensure sustainable greener building practices in California.
Agencies such as the California Energy Commission (CEC) which set the building efficiency standards, the California Building Standards Commission (CBSC) who is responsible for administrating California’s building codes including California’s green building code (CalGreen), and the California Public Utilities Commission (PUC) along with the CEC strive to achieve zero net energy (ZNE) goals.
Looking Ahead
Although California has long been cited as having the most energy-efficient building industry in the United States (in comparison to the national average, California’s building codes on energy efficiency are approximately 50% more efficient), California’s building industry can anticipate legislative application of even stricter energy efficiency policies over the next few years.
Along with the state mandates for energy efficiency in building codes, there are optional reach codes more rigid than the state’s codes that can be adopted at the local government level. These additional energy efficiency mandates could prove burdensome for builders already struggling to comply with 2010 building energy efficiency mandates.
In recent years, the CEC has developed the 2013 draft Energy Efficiency Standards. If these standards are adopted in January 2013, they will take effect on January 1, 2014.
A 2012 California Chamber of Commerce article discussing energy building standards stated, “During the development of the 2013 draft Energy Efficiency Standards, the CEC established a goal of tightening the energy code by another 15% for commercial buildings and by 25% for residential buildings.”
Additionally, the CEC and PUC continually work on zero net energy (ZNE) goals, which require that over the course of a year a home or commercial building shall produce nearly all the electricity needed on site. As a result, California has passed very stringent policies regarding ZNE expectations, and meeting criteria passed under AB 32 (the California Global Warming Solutions Act of 2006).
Business and Employers Hit Hard
This month, the Valley Industry Association of Santa Clarita noted that “Overwhelmingly, employers wanted to discuss the significant power that state agencies possess in regard to creating regulations.”
Their concerns include “lack of any oversight of agencies; general lack of public overview of regulations; lack of accountability of agency staff; legislators have no ability to control or reign in agencies; and agency actions are often influenced by special interests”.
Politicians and regulators must be capable of bridging reasonable aggressive energy conservation interests with the financial feasibility of projects. Straining an already troubled building sector with unattainable energy efficiency requirements could prove economic hardships towards positive state and local development.
How have these standards impacted your ability to develop and grow your business?
Please share your thoughts or experiences – we are anxious to hear from you.
