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Assembly Bill No. 368 CHAPTER 145 An act to add Section 25402.17 to the Public Resources Code, relating to energy. [ Approved by Governor October 01, 2025. Filed with Secretary of State October 01, 2025. ] LEGISLATIVE COUNSEL'S DIGEST AB 368, Ward. Energy: building standards: passive house standards. Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards, and energy and water conservation design standards, for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, as specified. This bill would require the commission to evaluate the cost-effectiveness of passive house energy efficiency standards by California climate zone, using commission-adopted metrics such as long-term system cost. The bill would require the commission to evaluate the use of the 2 passive house energy models currently required for passive house certification in its analysis and the cost-effectiveness of passive house construction compared to existing construction, as specified. The bill would require the commission, on or before July 1, 2028, to submit a report to the Legislature documenting its findings and recommendations. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 25402.17 is added to the Public Resources Code, to read: 25402.17. (a) The commission shall evaluate the cost-effectiveness of passive house energy efficiency standards by California climate zone, using commission-adopted metrics such as long-term system cost. (b) The commission shall evaluate the use of the two passive house energy models currently required for passive house certification in its analysis and the cost-effectiveness of passive house construction compared to existing construction under Part 6 (commencing with Section 100.0) of Title 24 of the California Code of Regulations. (c) The evaluation of the cost-effectiveness of passive house construction conducted by the commission pursuant to this section shall comply with the requirements of paragraph (3) of subdivision (b) of Section 25402. (d) (1) On or before July 1, 2028, the commission shall submit a report to the Legislature documenting its findings and recommendations. (2) The requirement for submitting a report imposed under this subdivision is inoperative on January 1, 2032, pursuant to Section 10231.5 of the Government Code. (3) The report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.