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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