Dive Brief:

• California Gov. Jerry Brown has signed a climate change bill, SB 350, which could lead to another solar and wind-fueled construction boom in the state.
• The state has upped its energy ante from previous goals of 33% to 50% renewable energy by 2030, along with a 50% increase in existing building energy efficiency. This higher goal is expected to reinvigorate construction of solar power plants and wind farms, the San Francisco Chronicle reported.
• The new also mandate requires California to double the energy efficiency of its buildings by 2030 — which should be a boost to both renovation and construction activity in the state.

Dive Insight:

The California law advocates for the use of renewable sources of energy and includes provisions encouraging the use of electric vehicles. But due to the influence of the oil industry in the state, the mandate to cut oil use in half was dropped from the bill, according to the Chronicle.

Andrew McAllister, a commissioner at the California Energy Commission, told the Los Angeles Times that renovating older buildings to meet the new standards will be a significant challenge going forward.

To reach the goal, existing buildings will see the installation of improved heating and air conditioning systems, as well as newer appliances. "What we’re trying to do is facilitate, where necessary, the marketplace for energy efficiency, for building upgrades, for remodels," McAllister said.

The state's previous goal to reach 33% renewable energy had sparked a solar and wind farm construction boom. But that wave of activity slowed down recently, according to the Chronicle, as developers waited to find out what the state government would decide for the new mandate. Now that the percentage has been raised, that stagnated construction will likely soon take off again.