BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1150


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          Date of Hearing:  April 28, 2015 


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 1150  
          (Levine) - As Introduced February 27, 2015


           [Note:  This bill is doubled referred.  On April 20, 2015, this  
            bill was heard and approved by a vote of 14-0 in the Assembly  
                        Committee on Utilities and Commerce.]


          SUBJECT:  Energy:  University of California partnership


          


          SUMMARY:  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: 





          1)Establishes the following findings and declarations:











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             a)   UC 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 UC facilities.



             c)   Collectively UC 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 UC  
               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 UC 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  









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               basis.



          2)Requires the California Energy Commission (CEC) to expand  
            existing partnerships to create an integrated and flexible  
            energy efficiency program across all UC campuses. 



          3)Requires UC to report to the CEC the annual reduction in  
            emissions of greenhouse gases (GHG) as a result of the  
            expanded partnership. 



          4)Requires UC to evaluate projects based on their effect in  
            reducing emissions of greenhouse gases and the cost  
            effectiveness in achieving those reductions.



          5)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:  Establishes UC as a public trust and confers the  
          full powers of the UC upon the UC Regents.  The Constitution  
          establishes that the UC is subject to legislative control only  
          to the degree necessary to ensure the security of its funds and  
          compliance with the terms of its endowments.  Judicial decisions  
          have held that there are three additional areas in which there  
          may be limited legislative intrusion into university operations:  
          authority over the appropriation of state moneys; exercise of  
          the general police power to provide for the public health,  
          safety and welfare; and, legislation on matters of general  
          statewide concern not involving internal university affairs.   









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          (Constitution of California, Article IX, Section 9)


          FISCAL EFFECT:  Unknown


          


          COMMENTS:  Purpose of this bill.  According to the author, UC  
          currently participates in 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 $63.6 million in  
          incentives from utilities as part of the program, and has saved  
          more than 265 million kWh/year and 14.4 million therms/year,  
          substantially contributing to the State's energy efficiency  
          goals. 





          According to the author, in the ten years since the program's  
          inception, the structure of the partnership has not grown or  
          evolved to account for changing realities within California's  
          energy environment.  The current approach limits energy  
          efficiency programs to only those campuses located within IOU  
          service territory, and continues to bases funding levels on  
          cost-effectiveness calculations that favor easy energy  
          efficiency upgrades.  This practice limits UC's ability to  
          obtain additional resources for advanced, long lasting energy  
          efficiency projects that are more costly and complex, but  
          ultimately deliver greater savings.










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          According to the author, this bill expands the existing Energy  
          Efficiency Partnership Program between the UC and IOUs to  
          include publicly owned utilities who are willing to participate,  
          requires the UC to utilize a new metric of carbon reduction for  
          the evaluation of future energy efficiency projects, and updates  
          UC's existing administrative framework related to energy  
          efficiency programs to accommodate potential funds from new  
          revenue sources. 





          Arguments in support.  UC is the sponsor of this bill, which  
          seeks to allow UC to expand its successful statewide  
          institutional partnership with IOUs, creating an integrated and  
          flexible energy efficiency program across all UC facilities and  
          reducing emission of greenhouse gases.  UC estimates that  
          savings from the expanded partnership, as detailed in this bill,  
          could be in the millions of dollars for UC.  Of note, UC is not  
          requesting state funding through the proposed legislation, but  
          instead seeking to establish a framework and policy that will  
          enable UC to utilize future funding in the most efficient and  
          cost effective manner.


          


          REGISTERED SUPPORT / OPPOSITION:


          









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          Support


          


          University of California (sponsor)


          


          Opposition


          


          None on File


          


          Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960



















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