AB 306 (Asm. Schultz) Analysis & Proposed Amendments

By Research Analyst, Andrew McKinnell

Executive Summary

The Green Policy Initiative opposes Assembly Bill 306 as it currently stands today; however, with amended language, the bill may receive the organization’s support. Our opposition stems from this bill’s long-term negative environmental impacts and the lack of environmental oversight. We believe that this bill could be a success if it included updating blanket environmental protections automatically as well as allowing local governments to make modifications that are in line with California’s previously set climate goals.

Bill Overview

An existing law, the California Building Standards Law, establishes the California Building Standards Commission, the body that approves, adopts, and codifies building standards in the California Building Standards Code. The commission operates and adopts new building standards on an 18 month cycle. If passed, AB 306 would establish a 6 year moratorium from June 1, 2025 to June 1, 2031 and new residential standards would not be adopted during this time. Existing law also allows cities and counties to modify the building standards code to add green building standards that are reasonably necessary due to local climatic, geological, or topographical conditions. This bill seeks to prohibit cities and counties from making changes to the building standard unless they are deemed necessary to protect health and safety. During June 1, 2025 to June 1, 2031, the commission would adopt one “model code,” which includes the latest addition of the International Wildland-Urban Interface Code, an international fire prevention set of standards.

AB 306 seeks to address a critical California housing crisis, exacerbated by the ravenous Los Angeles wildfires, among others. By solidifying one “model code,” construction firms would be able to reduce training costs and increase efficiency uninhibited by building standards cycles. With reduced costs, AB 306 removes barriers and encourages an increase in housing and rental supply and hopes to make housing more affordable.

Environmental Concerns

A. Environmental Impacts: While AB 306 does not repeal existing green building standards, it does limit innovation severely and the ability of local governments to reduce emissions and fossil fuel use. In 2019, buildings (both residential and commercial) generated 25% of California’s greenhouse gasses, the second largest source of emissions behind transportation[1]. This statistic, if considered, would offer legislators an opportunity to reduce emissions by promoting investment in sustainable infrastructure and building practices. To the contrary, AB 306 halts all local ability to invest in sustainable building standards, leaving technological advancements unused and allowing continuous emissions of greenhouse gasses. Further, AB 306 forces California to be dependent, investing in fossil fuels without foresight. According to Stanford University's Pathways to Carbon Neutrality in California (2022) report, 5% of energy savings in existing homes would amount to 10 years’ worth of new net-zero residential construction[2]. However, it is important to remember that a building is not just a building; it’s an energy commitment that lasts for decades. Under AB 306, electrification (the process of replacing fossil fuel dependent systems and appliances with electric ones) is restricted locally for the next six years. This restriction means that new buildings, the ones that will shape our future cities and communities, will still be built with inefficient fossil fuel systems and appliances. Even if California achieves better sustainability guidelines that are enacted into law in 40 years, the buildings built in this six year period will still depend on fossil fuels, costing our cities far more. It is in the state’s best interest to build with a green standard code, as these buildings will be the cornerstones of future cities. To its credit, AB 306 does include the International Wildland-Urban Interface Code and modifications for home hardening to the “model code.” However, while these measures do protect the lives and homes of families from fire, the Green Policy Initiative believes that these measures fail to address the root cause of these fire concerns: climate change. The Green Policy Initiative wants California to do more than just mitigate damages; it wants proactive and preventative climate action.

B. Lack of Mitigation Measures: Despite the aforementioned environmental concerns, AB 306 lacks and ignores key environmental damage mitigation measures, such as environmental impact reports and climate action targets. With regard to environmental reports, AB 306 undermines the California Environmental Quality Act (CEQA), which helps to ensure that new building standards and construction projects don’t harm the environment. In doing so, CEQA requires the quantification of environmental impacts, helping cities justify and align their projects with their regional climate action goals. AB 306, by preventing cities from updating their green building standards code until after June 2031, may directly interfere with CEQA compliance and will obstruct proven, beneficial local building standard modifications. In addition, AB 306 jeopardizes many of California’s set climate action goals. As of 2024, California was not on track to achieve its mission to emit 40% less in 2030 then in 1990[3]. However there is hope according to David Clergen, an Air Resources Board spokesman, who emphasizes the importance of green building standards and states that “it is more important than ever to transition existing facilities, and build clean energy infrastructure”(Lazo). In other words, AB 306, by restricting local government from adopting green building standards, may halt both regional and state sustainability goals and throw California further off track.

Policy Alignment and Alternatives

We believe that these proposed changes to the bill are a healthy compromise between protecting the environment and retaining the original stability provided by the bill. Firstly, the inclusion of the Tier 1 CALGreen code would address the unmitigated impacts while offering blanket protections, such as indoor water limits, heat island mitigation, and material emissions testing. In addition, as it is such a pivotal time for sustainable innovation, we believe that the Tier 1 CALGreen code should be automatically adopted into the “model code” in the same way that the International Wildland-Urban Interface Code is updated. The CALGreen Code updates on a triennial basis, giving the residential construction industry more time than the typical 18 month cycle. This cycle retains both the stability desired for the construction industry while also ensuring that residential buildings utilize sustainable advancements. Last, by allowing local governments to adopt stricter green building standards that are in line with California’s climate goals, California could remain on track with its 2030 and 2045 goals. This added flexibility would also allow local governments to tailor their environmental policy to address their regional needs and goals.

Conclusion

As it stands currently, AB 306 will create unmitigated environmental impacts without any environmental oversight or protections. For these reasons, the Green Policy Initiative stands firmly against the bill. AB 306, by pausing modifications to residential building standards, obstructs sustainable advancements in California cities and communities. If the “model code” does not include environmental protections, buildings that last for decades will still use fossil fuels and other unsustainable energy for years to come. AB 306 also does not have any environmental oversight, undermining CEQA and disregarding California long standing climate goals. However, AB 306 does address the housing availability and affordability crisis, a very important problem in California. We believe that a compromise can be made to maintain industry stability while not forgoing sustainability. An amended AB 306, with greater blanket environmental protections and local flexibility would receive the support of the Green Policy Initiative. That is to say, sustainability isn’t just a cost that homeowners and construction industries have to bear–it’s a generational investment in the public health of our communities.

Appendix: References

Building regulations: state building standards., AB 306, 2025 Leg., Reg. Sess. (Cal.2025). https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB306

[1] California Air Resources Board. (2019). California Greenhouse Gas Emission Inventory: 2000 – 2017, 2019 Edition, California Air Resources Board. https://ww2.arb.ca.gov/sites/default/files/classic/cc/inventory/pubs/reports/2000_2017/ghg_inventory_trends_00-17.pdf

[2] Pathways to carbon neutrality in California. Stanford Center for Carbon Storage. (2022). https://sccs.stanford.edu/california-projects/pathways-carbon-neutrality-california

[3] Lazo, A. (2024, March 14). California isn’t on track to meet its climate change mandates - and a new analysis says it’s not even close. CalMatters. https://calmatters.org/environment/climate-change/2024/03/california-climate-change-mandate-analysis/