Amended in Assembly May 23, 2014

Amended in Assembly April 29, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1953


Introduced by Assembly Member Skinner

(Principal coauthor: Assembly Member Williams)

February 19, 2014


An act to add Article 13 (commencing with Section 16429.40) to Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code, relating to energy efficiency.

LEGISLATIVE COUNSEL’S DIGEST

AB 1953, as amended, Skinner. Higher Education Energy Efficiency Act: financial assistance.

The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. Under existing law, the commission may apply for and accept grants, contributions, and appropriations, and award grants consistent with the goals and objectives of a program or activity the commission is authorized to implement or administer.

This bill would enact the Higher Education Energy Efficiency Act. The bill would create the Higher Education Energy Efficiency Fund in the State Treasury and would make moneys in the fund available to the State Energy Resources Conservation and Development Commission, upon appropriation, to provide financial assistance, includingbegin delete grants,end delete no-interest or low-interestbegin delete loans,end deletebegin insert loansend insert and loan loss reserves, to University of California and California State University campuses for building retrofits to reduce the demand for energy. The bill would require the commission, in consultation with the President of the University of California and the Chancellor of the California State University to establish a system to prioritize eligible campuses for this financial assistance, as specified. The bill would require the recipients of this financial assistance to report to the commission the annual energy savings achieved from projects supported by the financial assistance, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

(a) The University of California has committed
2to achieving carbon neutrality through aggressive measures to
3increase energy efficiency and develop renewable energy. The
4University of California’s model should produce substantial
5environmental and economic benefits, leverage current and planned
6investments by the University of California and others, and include
7projects that are immediately ready to commence.

8(b) The California State University has similarly committed to
9lowering annual energy consumption, reducing greenhouse gas
10emissions, and lowering energy-related operating costs. Over a
11five-year period, the California State University expects to decrease
12demand by 5 percent and decrease electrical consumption across
13the California State University system by 10 percent. The
14California State University has committed to incorporate workforce
15development strategies into its energy efficiency model.

16(c) There are opportunities to reduce both the economic cost
17and carbon footprints of campus facilities at the University of
18California and the California State University by having more
19energy-efficient buildings, operations, and maintenance. These
20financial savings could provide flexibility to pay for other upgrades
21to enhance the learning environment and access to higher
22education.

23(d) It is in the best interest of the state to quickly reduce energy
24consumption at university facilities, especially through building
25retrofits that achieve the highest levels of energy efficiency
26improvement.

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SEC. 2.  

Article 13 (commencing with Section 16429.40) is
2added to Chapter 2 of Part 2 of Division 4 of Title 2 of the 3Government Code, to read:

4 

5Article 13.  Energy Efficiency for Higher Education Facilities
6

 

7

16429.40.  

This article shall be known, and may be cited, as
8the Higher Education Energy Efficiency Act.

9

16429.41.  

As used in this article:

10(a) “Chancellor” means the Chancellor of the California State
11University.

12(b) “Commission” means the State Energy Resources
13Conservation and Development Commission.

14(c) “Eligible institution” means a campus of the University of
15California or a campus of the California State University.

16(d) “Financial assistance” includes, but is not necessarily limited
17to,begin delete allend deletebegin insert bothend insert of the following:

begin delete

18(1) Grants.

end delete
begin delete

19(2)

end delete

20begin insert(end insertbegin insert1)end insert No-interest or low-interest loans.

begin delete

21(3)

end delete

22begin insert(end insertbegin insert2)end insert Loan loss reserves.

23(e) “Fund” means the Higher Education Energy Efficiency Fund
24established pursuant to Section 16429.42.

25(f) “President” means the President of the University of
26California.

27

16429.42.  

(a) The Higher Education Energy Efficiency Fund
28is hereby created as a special fund in the State Treasury.

29(b) Moneys in the fund shall be available to the commission,
30upon appropriation by the Legislature, for the implementation of
31this article.

32

16429.43.  

(a) It is the intent of the Legislature that the
33commission administer the fund and implement this article in
34coordination with the chancellor and the president to provide
35financial assistance to eligible institutions for building retrofits
36that reduce the demand for energy.

37(b) The commission shall award financial assistance pursuant
38to this article, subject to the following:

39(1) The financial assistance shall be awarded only to eligible
40institutions.

P4    1(2) The commission shall ensure that adequate energy audit,
2measurement, and verification procedures are employed to ensure
3that energy savings occur as a result of the financial assistance.

4(c) (1) The commission shall adopt any regulations or guidelines
5necessary to implement this article. Notwithstanding any other
6law, regulations pursuant to this section may be adopted as
7emergency regulations pursuant to Chapter 3.5 (commencing with
8Section 11340) of Part 1 of Division 3.

9(2) For the purposes of Chapter 3.5 (commencing with Section
1011340) of Part 1 of Division 3, including Section 11349.6, the
11Office of Administrative Law shall consider the adoption of the
12regulations pursuant to this subdivision to be necessary for the
13immediate preservation of the public peace, health and safety, and
14general welfare.

15(d) The commission, to the extent possible, shall utilize existing
16resources and expertise in implementing this article.

17(e) (1) Any eligible institution may submit an application to
18the commission for financial assistance from the fund for energy
19efficiency improvements. The form of the application shall be
20established by the commission.

21(2) The commission, in consultation with the chancellor and
22the president, shall establish a system to prioritize eligible
23institutions for financial assistance through this article.
24Prioritization shall take into consideration circumstances that shall
25include, but not be limited to, the age of the campus facilities, the
26proportion of students at the campus receiving Cal Grant awards,
27whether the facilities have been recently modernized, the potential
28for demand reduction, and the campus’s score from a recognized
29energy rating system or systems.

30(f) This article shall not affect the eligibility of universities
31 awarded financial assistance pursuant to this article to receive other
32incentives available from federal, state, and local government, or
33from public utilities or other sources, and to leverage the financial
34assistance with those incentives.

35(g) Each year, on a schedule established by the commission,
36each eligible institution that receives financial assistance pursuant
37to this article shall report to the commission the amount of energy
38saved. Each eligible institution shall compute the cost of energy
39saved as a result of implementing projects supported by the
P5    1financial assistance. The cost shall be calculated in a manner
2established by the commission.

3(h) The commission shall determine, based on the annual energy
4savings reported by the eligible institutions pursuant to subdivision
5(g), the energy savings achieved pursuant to this article.



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