Amended in Assembly May 14, 2015

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 and California State University 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.

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.

This bill would begin delete require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities Commission, the California State University, and the University of California, end delete begin insert request the Regents of the University of California, and require the California State University, in consultation with the State Energy Resources Conservation and Development Commission and Public Utilities Commission, end insert to expand the existing statewide institutional partnership begin delete between the California State University, the University of California, and end delete begin insert with end insert investor-owned energy utilities, as defined, to create an integrated and flexible program across all the California State University and University of California facilities, that accomplishes specified matter, including extending participation to the California State University and 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 California State University and the University of California to report to begin delete the State Energy Resources Conservation and Development Commission end delete begin insert each investor-owned energy utility or local publicly owned energy utility end insert the annual reduction in emissions of greenhouse gases from the expanded partnership at all begin delete participating end delete California State University and University of California begin delete facilities. end delete begin insert facilities within that utility’s service territory. end insert

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 the California State University, the University of
California, and investor-owned energy utilities.

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

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

(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
begin delete leverage end delete begin insert authorize end insert the existing partnership to begin delete allow flexibility and
to end delete 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 the California
State University and 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 the California State
University and University of California facilities within the service
territory of the investor-owned energy utility.

(f) As a condition to participation in the expanded partnership,
the California State University and the University of California
shall report to begin delete the commission end delete begin insert each investor-owned energy utility
or local publicly owned energy utility end insert the annual reduction in
emissions of greenhouse gases from the expanded partnership at
all begin delete participating end delete California State University and University of
California begin delete facilities, end delete begin insert facilities within that utility’s service territory, end insert
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.

begin delete

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

end delete