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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