BILL NUMBER: AB 1150 CHAPTERED BILL TEXT CHAPTER 597 FILED WITH SECRETARY OF STATE OCTOBER 8, 2015 APPROVED BY GOVERNOR OCTOBER 8, 2015 PASSED THE SENATE SEPTEMBER 8, 2015 PASSED THE ASSEMBLY SEPTEMBER 9, 2015 AMENDED IN SENATE SEPTEMBER 3, 2015 AMENDED IN SENATE AUGUST 31, 2015 AMENDED IN SENATE JULY 9, 2015 AMENDED IN ASSEMBLY MAY 14, 2015 AMENDED IN ASSEMBLY MAY 5, 2015 INTRODUCED BY Assembly Member Levine FEBRUARY 27, 2015 An act to add Article 10 (commencing with Section 66090) of Chapter 2 of Part 40 of Division 5 of Title 3 to the Education Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 1150, 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 request the Regents of the University of California, and require the California State University, to consider aligning their greenhouse gas reduction goals with those of the statewide institutional partnership between the California State University, the University of California, and investor-owned energy utilities and with those of the state, as specified. 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 each investor-owned energy utility or local publicly owned energy utility the annual reduction in emissions of greenhouse gases from the expanded partnership at all California State University and University of California facilities within that utility's service territory. 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. Article 10 (commencing with Section 66090) is added to Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code, to read: Article 10. University Energy Efficiency Partnership 66090. (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. (4) "University" means the University of California and the California State University. (b) The Regents of the University of California are requested to, and the California State University shall, consider aligning their greenhouse gas reduction goals with those of the partnership and the state by doing all of the following: (1) Expanding participation in the partnership to include the university facilities served by local publicly owned energy utilities that choose to participate, and seeking the assistance of the State Energy Resources Conservation and Development Commission in requesting the participation of those local publicly owned energy utilities. (2) Evaluating activities that reduce greenhouse gas emissions and improve energy efficiency based upon adherence to the Public Utilities Commission's energy efficiency and savings protocols, if applicable, including, but not limited to, deep energy efficiency and eligible renewable energy resources, subject to applicable funding. (3) Wherever feasible, utilizing whole-building, or whole-campus, meter-based verification. (4) Developing an administrative framework that can be utilized by the partnership, to the extent allowable by the funding source, to allocate any future funding from the state or other sources for energy projects or projects for reducing greenhouse gas emissions. (c) This section does not affect the eligibility of a university to receive resources from federal, state, and local government, or from public utilities or other sources through the partnership, and to leverage those resources. (d) Funds associated with an investor-owned energy utility shall be used in compliance with Public Utilities Commission requirements at the university facilities within the service territory of the investor-owned energy utility. (e) As a condition to participation in the expanded partnership, a university shall report to each investor-owned energy utility or local publicly owned energy utility the annual reduction in emissions of greenhouse gases from the expanded partnership at all university facilities within that utility's service territory, by a mutually agreed upon date.