Amended in Assembly May 5, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 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 amended, Levine. Energy: University of California begin insert and California State University end insert 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.

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Existing law establishes the system of public postsecondary education in the state, which includes the University of California, administered by the Regents of the University of California, and the California State University, administered by the Trustees of the California State University.

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This bill would require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities begin delete Commission end delete begin insert Commission, the California State University, end insert and the University of California, to expand the existing statewide institutional partnership between begin insert the California State University, end insert the University of begin delete California end delete begin insert California, end insert and investor-owned energy utilities, as defined, to create an integrated and flexible program across all begin insert the California State University and end insert University of California facilities, that accomplishes specified matter, including extending participation to begin insert the California State University and end insert 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 begin insert the California State University and end insert 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 begin insert California State University and end insert 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:

SECTION 1.  

The Legislature finds and declares all of the
following:

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

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

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

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

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

SEC. 2.  

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

25404.5.  

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

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

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

(3) “Partnership” means the statewide institutional partnership
between begin insert the California State University, end insert the University of
begin delete California end delete begin insert California, end insert and investor-owned energy utilities.

(b) The commission, in consultation with the Public Utilities
begin delete Commission end delete begin insert Commission, the California State University, end insert and the
University of California, shall expand the statewide institutional
partnership between begin insert the California State University, end insert the University
of begin delete California end delete begin insert California, end insert and investor-owned energy utilities to
create an integrated and flexible program across all begin insert the California
State University and end insert University of California facilities, that
accomplishes all of the following:

(1) Participation in the partnership is extended to begin insert California
State University and end insert University of California facilities served by
local publicly owned energy utilities that choose to participate.
The commission shall collaborate with those local publicly owned
energy utilities serving begin insert the California State University and end insert the
University of California to ensure the participation of begin insert the California
State University, end insert the University of begin delete California end delete begin insert California, end insert and local
publicly owned energy utilities.

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

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

(c) The Public Utilities Commission and the commission shall
leverage the existing partnership to allow flexibility and to
accommodate the potential for multiple funding sources, and the
partnership’s existing administrative framework shall, subject to
subdivision (e), be utilized to allocate any future funding from the
state for energy projects or projects for reducing emissions of
greenhouse gases.

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

(e) Funds associated with an investor-owned energy utility shall
be used only for projects that are in compliance with Public
Utilities Commission requirements at begin insert the California State
University and end insert University of California facilities within the service
territory of the investor-owned energy utility.

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

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