California Legislature—2015–16 Regular Session

Assembly BillNo. 1150


Introduced by Assembly Member Levine

February 27, 2015


An act to add Section 25404.5 to the Public Resources Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1150, as introduced, Levine. Energy: University of California partnership.

The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. The act requires the State Energy Resources Conservation and Development Commission, beginning November 1, 2003, and by November 1 of every odd year thereafter, to adopt an integrated energy policy report which includes an overview of major energy trends and issues facing the state, an assessment and forecast of system reliability, and the need for resource additions, efficiency, and conservation.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined, while local publicly owned electric utilities, as defined, and local publicly owned gas utilities are under the direction of their governing board.

This bill would require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities Commission and the University of California, to expand the existing statewide institutional partnership between the University of California and investor-owned energy utilities, as defined, to create an integrated and flexible program across all University of California facilities, that accomplishes specified matter, including extending participation to University of California facilities served by local publicly owned energy utilities that choose to participate. As a condition for participation in the expanded partnership, the bill would require the University of California to report to the State Energy Resources Conservation and Development Commission the annual reduction in emissions of greenhouse gases from the expanded partnership at all participating University of California facilities.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The University of California has committed to achieving
4carbon neutrality through aggressive measures to increase energy
5efficiency and develop renewable energy resources.

6(b) Because of its size and subsequent required energy
7consumption, there are significant opportunities for reducing
8emissions of carbon dioxide and other greenhouse gases at
9University of California facilities.

10(c) Collectively the University of California has substantially
11contributed to the state’s energy efficiency goals by saving 373
12million kilowatthours per year and 18,700,000 therms per year
13through 2014 as part of an institutional statewide partnership with
14investor-owned energy utilities established in 2004.

15(d) Additional deep energy efficiency potential exists at
16University of California facilities. The identified potential deep
17energy efficiency projects could produce savings of 426,000,000
18kilowatthours per year and 15,700,000 therms per year, equating
19to $59 million per year in utility cost savings.

20(e) There is a need to expand the existing University of
21California institutional statewide partnership to capture carbon
22and reduce emissions of greenhouse gases and to ensure meaningful
23and reliable energy assessments, cost-effective energy efficiency
24improvements, and the incorporation of projects that are
25demonstrated to be cost effective on a carbon basis.

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SEC. 2.  

Section 25404.5 is added to the Public Resources Code,
2to read:

3

25404.5.  

(a) For purposes of this section, the following terms
4have the following meanings:

5(1) “Investor-owned energy utilities” means the state’s three
6largest electrical corporations, as defined in Section 218 of the
7Public Utilities Code, and each gas corporation, as defined in
8Section 222 of the Public Utilities Code, of the state.

9(2) “Local publicly owned energy utility” means a local publicly
10owned electric utility, as defined in Section 224.3 of the Public
11Utilities Code, or a local publicly owned gas utility.

12(3) “Partnership” means the statewide institutional partnership
13between the University of California and investor-owned energy
14utilities.

15(b) The commission, in consultation with the Public Utilities
16Commission and the University of California, shall expand the
17statewide institutional partnership between the University of
18California and investor-owned energy utilities to create an
19integrated and flexible program across all University of California
20facilities, that accomplishes all of the following:

21(1) Participation in the partnership is extended to University of
22California facilities served by local publicly owned energy utilities
23that choose to participate. The commission shall collaborate with
24those local publicly owned energy utilities serving the University
25of California to ensure the participation of the University of
26California and local publicly owned energy utilities.

27(2) A project is evaluated based upon the project’s effect in
28reducing emissions of greenhouse gases and the cost effectiveness
29in achieving those reductions, including, but not limited to, deep
30energy efficiency and eligible renewable energy resources, subject
31to applicable funding.

32(3) Wherever feasible, the partnership utilizes whole-building,
33or whole-campus, meter based verification in order to reduce costs
34associated with traditional field verification and engineering hand
35calculations.

36(c) The Public Utilities Commission and the commission shall
37leverage the existing partnership to allow flexibility and to
38accommodate the potential for multiple funding sources, and the
39partnership’s existing administrative framework shall, subject to
40subdivision (e), be utilized to allocate any future funding from the
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2greenhouse gases.

3(d) This section does not affect the eligibility of the University
4of California to receive resources from federal, state, and local
5government, or from public utilities or other sources through the
6partnership, and to leverage those resources.

7(e) Funds associated with an investor-owned energy utility shall
8be used only for projects that are in compliance with Public
9Utilities Commission requirements at University of California
10facilities within the service territory of the investor-owned energy
11utility.

12(f) As a condition to participation in the expanded partnership,
13the University of California shall report to the commission the
14annual reduction in emissions of greenhouse gases from the
15expanded partnership at all participating University of California
16facilities, by a mutually agreed upon date. When reporting the
17 results of partnership projects, all savings calculations shall utilize
18a baseline reflecting the existing conditions prior to the upgrade.

19(g) The Public Utilities Commission and the commission, to
20the extent possible, shall utilize existing resources, administrative
21structures, and expertise in implementing this section.



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