BILL NUMBER: AB 1953	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  APRIL 29, 2014

INTRODUCED BY   Assembly Member Skinner
   (Principal coauthor: Assembly Member Williams)

                        FEBRUARY 19, 2014

   An act to add Article  13   11.5 
(commencing with Section  16429.40)   16429.6)
 to Chapter 2 of Part 2 of Division 4 of Title 2 of the
Government Code, relating to energy efficiency.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1953, as amended, Skinner. Higher Education Energy Efficiency
Act: financial assistance.
   The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission. Under existing law, the commission may
apply for and accept grants, contributions, and appropriations, and
award grants consistent with the goals and objectives of a program or
activity the commission is authorized to implement or administer.
   This bill would enact the Higher Education Energy Efficiency Act.
The bill would create the Higher Education Energy Efficiency Fund in
the State Treasury and would make moneys in the fund available to the
State Energy Resources Conservation and Development Commission, upon
appropriation, to provide financial assistance, including
no-interest or low-interest loans and loan loss reserves, to
University of California and California State University campuses for
building retrofits to reduce the demand for energy. The bill would
require the commission, in consultation with the President of the
University of California and the Chancellor of the California State
 University   University,  to establish a
system to prioritize eligible campuses for this financial assistance,
as specified. The bill would require the recipients of this
financial assistance to report to the commission the annual energy
savings achieved from projects supported by the financial assistance,
as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The University of California has committed to
achieving carbon neutrality through aggressive measures to increase
energy efficiency and develop renewable energy. The University of
California's model should produce substantial environmental and
economic benefits, leverage current and planned investments by the
University of California and others, and include projects that are
immediately ready to commence.
   (b) The California State University has similarly committed to
lowering annual energy consumption, reducing greenhouse gas
emissions, and lowering energy-related operating costs. Over a
five-year period, the California State University expects to decrease
demand by 5 percent and decrease electrical consumption across the
California State University system by 10 percent. The California
State University has committed to incorporate workforce development
strategies into its energy efficiency model.
   (c) There are opportunities to reduce both the economic cost and
carbon footprints of campus facilities at the University of
California and the California State University by having more
energy-efficient buildings, operations, and maintenance. These
financial savings could provide flexibility to pay for other upgrades
to enhance the learning environment and access to higher education.
   (d) It is in the best interest of the state to quickly reduce
energy consumption at university facilities, especially through
building retrofits that achieve the highest levels of energy
efficiency improvement.
  SEC. 2.  Article  13   11.5  (commencing
with Section  16429.40)   16429.6)  is
added to Chapter 2 of Part 2 of Division 4 of Title 2 of the
Government Code, to read:

      Article  13.   11.5.   Energy
Efficiency for Higher Education Facilities


    16429.40.   16429.6.   This article
shall be known, and may be cited, as the Higher Education Energy
Efficiency Act.
    16429.41.   16429.62.   As used in this
article:
   (a) "Chancellor" means the Chancellor of the California State
University.
   (b) "Commission" means the State Energy Resources Conservation and
Development Commission.
   (c) "Eligible institution" means a campus of the University of
California or a campus of the California State University.
   (d) "Financial assistance" includes, but is not necessarily
limited to, both of the following:
   (1) No-interest or low-interest loans.
   (2) Loan loss reserves.
   (e) "Fund" means the Higher Education Energy Efficiency Fund
established pursuant to Section  16429.42.  
16429.64. 
   (f) "President" means the President of the University of
California.
    16429.42.   16429.64.   (a) The Higher
Education Energy Efficiency Fund is hereby created as a special fund
in the State Treasury.
   (b) Moneys in the fund shall be available to the commission, upon
appropriation by the Legislature, for the implementation of this
article.
    16429.43.   16429.66.   (a) It is the
intent of the Legislature that the commission administer the fund and
implement this article in coordination with the chancellor and the
president to provide financial assistance to eligible institutions
for building retrofits that reduce the demand for energy.
   (b) The commission shall award financial assistance pursuant to
this article, subject to the following:
   (1) The financial assistance shall be awarded only to eligible
institutions.
   (2) The commission shall ensure that adequate energy audit,
measurement, and verification procedures are employed to ensure that
energy savings occur as a result of the financial assistance.
   (c) (1) The commission shall adopt any regulations or guidelines
necessary to implement this article. Notwithstanding any other law,
regulations pursuant to this section may be adopted as emergency
regulations pursuant to Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3.
   (2) For the purposes of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3, including Section 11349.6, the Office
of Administrative Law shall consider the adoption of the regulations
pursuant to this subdivision to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.
   (d) The commission, to the extent possible, shall utilize existing
resources and expertise in implementing this article.
   (e) (1) Any eligible institution may submit an application to the
commission for financial assistance from the fund for energy
efficiency improvements. The form of the application shall be
established by the commission.
   (2) The commission, in consultation with the chancellor and the
president, shall establish a system to prioritize eligible
institutions for financial assistance through this article.
Prioritization shall take into consideration circumstances that shall
include, but not be limited to, the age of the campus facilities,
the proportion of students at the campus receiving Cal Grant awards,
whether the facilities have been recently modernized, the potential
for demand reduction, and the campus's score from a recognized energy
rating system or systems.
   (f) This article shall not affect the eligibility of universities
awarded financial assistance pursuant to this article to receive
other incentives available from federal, state, and local government,
or from public utilities or other sources, and to leverage the
financial assistance with those incentives.
   (g) Each year, on a schedule established by the commission, each
eligible institution that receives financial assistance pursuant to
this article shall report to the commission the amount of energy
saved. Each eligible institution shall compute the cost of energy
saved as a result of implementing projects supported by the financial
assistance. The cost shall be calculated in a manner established by
the commission.  To satisfy the requirements of this subdivision
in regard to a project, an eligible institution may submit to the
commission a copy of an energy savings calculation that is required
by any other funding source for the project. 
   (h) The commission shall determine, based on the annual energy
savings reported by the eligible institutions pursuant to subdivision
(g), the energy savings achieved pursuant to this article.