BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1150| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1150 Author: Levine (D) Amended: 9/3/15 in Senate Vote: 21 SENATE EDUCATION COMMITTEE: 8-0, 6/17/15 AYES: Liu, Runner, Block, Hancock, Leyva, Monning, Pan, Vidak NO VOTE RECORDED: Mendoza SENATE ENERGY, U. & C. COMMITTEE: 10-0, 6/30/15 AYES: Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire, Morrell, Pavley NO VOTE RECORDED: Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 76-0, 5/26/15 (Consent) - See last page for vote SUBJECT: Energy: University of California and California State University partnership SOURCE: Author DIGEST: This bill requests the University of California (UC) and requires the California State University (CSU), to consider aligning greenhouse gas reduction goals with those of the existing statewide institutional partnership with investor-owned utilities (IOU) to include facilities served by publicly owned utilities (POU) that choose to participate. AB 1150 Page 2 Senate Floor Amendments of 9/3/15 correct a drafting error clarifying that the "commission," means the State Energy Resources Conservation and Development Commission. ANALYSIS: Existing law: 1)Establishes the UC as a public trust, administered by the Regents and provides that statutes related to UC are applicable only to the extent that the UC Regents make such provisions applicable. (Constitution of California, Article IX, Section 9) 2)Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, and control of the CSU system. (Education Code § 66606) 3)Requires the California Energy Commission (CEC) to develop and administer a series of programs to provide cost-effective energy efficiency and conservation contracts, grants, and loans to eligible entities. Additional financial assistance is available through IOUs, as required by the PUC. (Public Resources Code § 25410-25474) 4)Requires POUs to encourage energy savings and greenhouse gas emissions reductions in existing residential and non-residential buildings, while taking into consideration the effect of the program on rates, reliability, and financially resources. (PUC § 9503) This bill: 1)Requests the UC and requires the CSU to do all of the following: a) Expand participation in the statewide institutional partnership with the IOU for purposes of aligning greenhouse gas reduction goals, to include university facilities served by POUs that choose to participate and seeking the assistance of the State Energy Resources Conservation and Development Commission in requesting the participation of those local POUs. AB 1150 Page 3 b) Evaluate activities that reduce greenhouse gas emission and improve energy, as specified. c) Utilize whole building or whole campus meter-based verification d) Develop an administrative framework for in order to accommodate for multiple funding sources, as specified. 1)Requires UC and CSU to report to the applicable POU or IOU the annual reduction in emissions of greenhouse gases as a result of the project performed under the expanded partnership. 2)Requires funds associated with an investor-owned energy utility to be used only for projects that comply with CPUC requirements at facilities located within its service territory. 3)Specifies, that the provision of this bill does not affect UC and CSU eligibility to receive or leverage resources from various entities. 4)Makes a variety of legislative findings and declarations regarding UC's commitment to achieving carbon neutrality and developing renewable energy resources through various measures including expanding its statewide partnerships. 5)Defines various terms for the purposes of this bill. Comments 1)Need for the bill? According to the author, current law limits the UC's and CSU's energy efficient program known as the Energy Efficiency Partnership, to those campuses located within an IOU service territory. This approach limits a POU served campus from participating in the program. Additionally, the program's current structure is outdated and the provisions in this bill provide for advanced and long-lasting "deep" energy efficient projects that will ultimately deliver ongoing savings and assist UC and CSU in meeting their energy goals. This bill codifies and streamlines the expanded partnership program, proposes a new metric of carbon reduction for evaluating energy efficiency projects and updates the existing AB 1150 Page 4 administrative framework related to energy efficiency programs to accommodate future funds. 2)Energy Efficiency Partnership. In 2004, the UC and the CSU each established partnerships with California's four largest IOUs (Pacific Gas and Electric, San Diego Gas and Electric, Southern California Edison and Southern California Gas Company) to provide an energy management program and improve the energy performance of existing buildings. As a result of this partnership, UC has achieved an annual savings of 373 million kilowatt-hours (electricity), and 18.7 million therms-per-year (gas) through 2014. In total, the UC has received $63.6 million in incentives from utilities. However, six CSU and UC campuses are unable to participate in the Energy Efficiency Partnership given that they are located within a POU service territory. Those campuses include the UC Los Angeles, UC Riverside, UC Davis Medical Center, and CSU at Sacramento, Northridge, and Los Angeles. A key difference between a public and investor owned utility is that IOU are required to use a portion of ratepayer funds for projects that comply with California Public Utilities Commission (CPUC) requirements. In contrast, POU's are independent of the CPUC requirements and are regulated by locally elected boards or city councils each with their own methods for reaching energy saving goals. According to the UC, the absence of the partnership incentives for POU served campuses has limited the ability of some campuses to implement energy efficiency projects. 3)The provisions in this bill aim to help position UC and CSU campuses located within the territories of POU's to receive incentives generated as a result of the partnership by inviting POU's to participate. This bill specifies that the campuses may seek the assistance of the State Energy Resources Conservation and Development Commission to encourage the involvement of those local publicly owned energy utilities. Prior Legislation AB 1959 (Skinner, 2014) would have required the CEC to develop a financial assistance program for energy efficiency projects on the UC and CSU campuses. The bill died in the Senate Appropriations Committee. AB 1150 Page 5 FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, there are minor and absorbable costs to the Public Utilities Reimbursement Account (special) to consult with the UC and CSU on their partnership. SUPPORT: (Verified9/4/15) California State University Sierra Club University of California OPPOSITION: (Verified 9/4/15) None received ASSEMBLY FLOOR: 76-0, 5/26/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Bloom, Chávez, Harper, Mathis Prepared by:Olgalilia Ramirez / ED. / (916) 651-4105 9/4/15 19:12:05 **** END **** AB 1150 Page 6