Amended in Senate June 30, 2014

Amended in Assembly May 23, 2014

Amended in Assembly April 29, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1953

Introduced by Assembly Member Skinner

(Principal coauthor: Assembly Member Williams)

February 19, 2014

An act to add Article begin delete 13 end delete begin insert 11.5 end insert (commencing with Section begin delete 16429.40) end delete begin insert 16429.6) end insert 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, including no-interest or low-interest loans 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 begin delete University end delete begin insert University, end insert 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:

SECTION 1.  

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

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

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

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

SEC. 2.  

Article begin delete 13 end delete begin insert 11.5 end insert (commencing with Section begin delete 16429.40) end delete
begin insert 16429.6) end insert is added to Chapter 2 of Part 2 of Division 4 of Title 2
of the Government Code, to read:

 

Article begin delete 13. end delete begin insert 11.5. end insert   Energy Efficiency for Higher Education
Facilities

 

begin delete 16429.40. end delete
begin insert 16429.6. end insert   

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

begin delete 16429.41. end delete
begin insert 16429.62. end insert   

As used in this article:

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

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

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

(d) “Financial assistance” includes, but is not necessarily limited
to, both of the following:

(1) No-interest or low-interest loans.

(2) Loan loss reserves.

(e) “Fund” means the Higher Education Energy Efficiency Fund
established pursuant to Section begin delete 16429.42. end delete begin insert 16429.64. end insert

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

begin delete 16429.42. end delete
begin insert 16429.64. end insert   

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

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

begin delete 16429.43. end delete
begin insert 16429.66. end insert   

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

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

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

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

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

(2) For the purposes of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3, including Section 11349.6, the
Office of Administrative Law shall consider the adoption of the
regulations pursuant to this subdivision to be necessary for the
immediate preservation of the public peace, health and safety, and
general welfare.

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

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

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

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

(g) Each year, on a schedule established by the commission,
each eligible institution that receives financial assistance pursuant
to this article shall report to the commission the amount of energy
saved. Each eligible institution shall compute the cost of energy
saved as a result of implementing projects supported by the
financial assistance. The cost shall be calculated in a manner
established by the commission. begin insert To satisfy the requirements of this
subdivision in regard to a project, an eligible institution may
submit to the commission a copy of an energy savings calculation
that is required by any other funding source for the project. end insert

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