BILL ANALYSIS Ó
AB 1150
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CONCURRENCE IN SENATE AMENDMENTS
AB
1150 (Levine)
As Amended
Majority vote
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|ASSEMBLY: | 76-0 | (May 26, |SENATE: | 40-0 | (September 8, |
| | |2015) | | |2015) |
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Original Committee Reference: U. & C.
SUMMARY: Requires the University of California (UC) and the
California State University (CSU), in consultation with the
California Energy Commission (CEC) and the Public Utilities
Commission (CPUC), to expand their existing institutional
partnership with investor-owned utilities (IOUs) and to include
those publicly-owned utilities (POUs) requested by the CEC to
participate and who choose to participate.
The bill also requires UC and CSU to report to the applicable
utilities the annual reduction in emissions of greenhouse gases
as a result of projects undertaken under the expanded
partnership.
The Senate amendments:
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1)Move the language to the Education Code.
2)Delete the requirements on CSU and instead encourage both the
UC and CSU to expand their partnership.
3)Delete the requirement for the CPUC and the CEC to authorize
the existing partnership.
4)Delete the requirement that savings calculations utilize a
baseline reflecting existing conditions.
5)Clarifying changes.
EXISTING LAW:
1)Requires 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 greenhouse gas emission performance standard, once
an enforceable standard is in place, for POUs and load-serving
entities, respectively. (Public Utilities Code Sections 8340,
et seq.)
FISCAL EFFECT: According to Senate Appropriations, as amended,
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minor and absorbable costs to the Public Utilities Reimbursement
Account (special) to consult with the UC and CSU on their
partnership.
COMMENTS:
1)Author's Statement: The University of California has been at
the forefront of our state's energy efficiency goals. Over
the past 10 years, UC has collectively saved 373 million
kilowatt-hours per year and over 18 million therms per year
through the Energy Efficiency Partnership Program. This bill
will build upon those achievements and help UC achieve greater
energy efficiency by expanding the existing Partnership
Program between IOUs to include POUs that are willing to
participate.
2)Current Energy Efficiency Partnerships: UC currently
participates in a program called the Energy Efficiency
Partnership with California's large 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.
The program currently engages in retrofit projects,
monitoring-based commissioning, and training and education.
3)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 gases
from its buildings and car fleet by 2025. This bill 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
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current law does not give the UC the ability to partner with
POUs in the Energy Efficiency Partnership Program, nothing in
statute prohibits UC from doing partnerships with POUs.
The locations of UC campuses served by 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, there
would be no justification for providing ratepayer funds from
IOU customers to that campus.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
FN: 0002238