BILL ANALYSIS Ó
AB 1150
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Date of Hearing: April 20, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
AB 1150
(Levine) - As Introduced February 27, 2015
SUBJECT: Energy: University of California partnership
SUMMARY: This bill expands the existing Energy Efficiency
Partnership Program between the University of California (UC)
and investor-owned utilities to include publicly owned utilities
that are willing to participate in the program. Specifically,
this bill:
a)Requires the California Energy Commission (CEC) to expand
existing partnerships to create an integrated and flexible
energy efficiency program across all University of California
(UC) campuses.
b)Requires UC to report to the CEC the annual reduction in
emissions of greenhouse gases (GHG) as a result of the
expanded partnership.
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c)Requires UC to evaluate projects based on their effect in
reducing emissions of greenhouse gases and the cost
effectiveness in achieving those reductions.
d)Requires the California Public Utilities Commission (CPUC) and
the CEC to leverage their existing partnership to allow
flexibility and to accommodate the potential for multiple
funding sources.
EXISTING LAW:
1)Requires Publicly Owned Utilities (POUs) to encourage energy
savings and greenhouse gas emission reductions in existing
residential and nonresidential buildings, while taking into
consideration the effect of the program on rates, reliability,
and financial resources. (Public Utilities Code Section 9503)
2)Requires the CEC to adopt an integrated energy policy report
which includes an overview of major energy trends and issues
facing the state, and the need for resource additions,
efficiency, and conservation. (Public Resources Code Sections
25228 and 25300)
3)Directs the CEC and the CPUC, each in consultation with Air
Resources Board (ARB), to reevaluate and continue, modify, or
replace the GHG emission performance standard, once an
enforceable standard is in place, for Public Owned Utilities
(POU) and load-serving entities, respectively. (Public
Utilities Code Sections 8340 et seq.)
FISCAL EFFECT: Unknown.
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COMMENTS:
1)Author's Statement: The University of California has been at
the forefront of our state's energy efficiency goals. Over
the past ten years, UC has collectively saved 373 million
kilowatt-hours per year and over 18 million therms per year
through the Energy Efficiency Partnership Program. AB 1150
will build upon those achievements and help UC achieve greater
energy efficiency by expanding the existing Partnership
Program between investor-owned utilities to include publicly
owned utilities that are willing to participate. Furthermore,
this bill makes progress towards UC's commitment to becoming
carbon neutral by 2025 by requiring UC to utilize a new metric
of carbon reduction for the evaluation of future energy
efficiency projects.
2)Success of current Energy Efficiency Partnerships: UC
currently participates in a program called the Energy
Efficiency Partnership with California's large investor-owned
utilities (IOUs) such as Pacific Gas & Electric, Southern
California Edison, and San Diego Gas and Electric. This
Partnership was established in 2004 as a framework for
providing energy efficiency resources for UC and CSU campuses.
UC has received a total of $63.3 million in incentives from
utility ratepayers as part of the program, and has saved more
than 265 million kWh/year and 14.4 therms/year, substantially
contributing to the State's energy efficiency goals. The
program currently engages in retrofit projects, monitoring
based commissioning, and training and education.
The Need for Expansion: In November of 2013, UC President
Janet Napolitano announced the Carbon Neutrality Initiative,
which commits the UC to emitting net zero greenhouse gasses
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from its buildings and car fleet by 2025. AB 1150 is in line
with that goal, and expands on current practices to achieve
it.
If POUs have not participated in UC's Energy Efficiency
Partnerships, they could do so if they wanted to. POUs have
independent Governing Boards who make these decisions. While
current law does not give the UC the ability to partner with
Public Owned Utilities (POUs) in the Energy Efficiency
Partnership Program nothing in statute prohibits UC from doing
partnerships with POUs.
The locations of UC campuses where there are POUs are: Los
Angeles and Riverside and it is unknown whether these UC
campuses are served by those local POUS, Southern California
Edison, or both.
There are few campuses located within the service areas of
POUs. Therefore there may be little benefit to UC to enter
into such partnerships.
In addition, UC recently became its own electricity service
provider, which is in addition to the existing direct access
contracts that UC has entered into for electricity services.
If a campus is not served by a POU it could be difficult for a
POU to justify providing ratepayer funded incentives to that
campus. Similarly, if a campus is not served by an IOU would
have difficult justifying providing ratepayer funds to that
campus.
3)Double referral. This bill is double referred to the Assembly
Committee on Higher Education.
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REGISTERED SUPPORT / OPPOSITION:
Support
University of California (Sponsor)
Opposition
None on file.
Analysis Prepared by:Allegra Roth / U. & C. / (916) 319-2083
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