Amended in Senate August 21, 2014

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 BillNo. 1953


Introduced by Assembly Member Skinner

(Principal coauthor: Assembly Member Williams)

February 19, 2014


An act to add Article 11.5 (commencing with Section 16429.6) 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 Commissionbegin insert, also known as the Energy Commissionend insert. 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 thebegin delete State Energy Resources Conservation and Development Commission,end deletebegin insert commission,end insert 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.begin insert The bill would require the Energy Commission to consult with the Public Utilities Commission, the President of the University of California, and the Chancellor of the California State University to expand existing partnerships in order to prioritize projects based on greenhouse gas reductions and allow specified facilities to receive funds under this act.end insert The bill would require thebegin delete commission,end deletebegin insert Energy Commission,end insert 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 thebegin delete commissionend deletebegin insert Energy Commissionend insert 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:

P2    1

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
P3    1energy-efficient buildings, operations, and maintenance. These
2financial savings could provide flexibility to pay for other upgrades
3to enhance the learning environment and access to higher
4education.

5(d) It is in the best interest of the state to quickly reduce energy
6consumption at university facilities, especially through building
7retrofits that achieve the highest levels of energy efficiency
8improvement.

9

SEC. 2.  

Article 11.5 (commencing with Section 16429.6) is
10added to Chapter 2 of Part 2 of Division 4 of Title 2 of the 11 Government Code, to read:

12 

13Article 11.5.  Energy Efficiency for Higher Education Facilities
14

 

15

16429.6.  

This article shall be known, and may be cited, as the
16Higher Education Energy Efficiency Act.

17

16429.62.  

As used in this article:

18(a) “Chancellor” means the Chancellor of the California State
19University.

20(b) “Commission” means the State Energy Resources
21Conservation and Development Commission.

22(c) “Eligible institution” means a campus of the University of
23California or a campus of the California State University.

24(d) “Financial assistance” includes, but is not necessarily limited
25to, both of the following:

26(1) No-interest or low-interest loans.

27(2) Loan loss reserves.

28(e) “Fund” means the Higher Education Energy Efficiency Fund
29established pursuant to Section 16429.64.

30(f) “President” means the President of the University of
31California.

32

16429.64.  

(a) The Higher Education Energy Efficiency Fund
33is hereby created as a special fund in the State Treasury.

34(b) Moneys in the fund shall be available to the commission,
35upon appropriation by the Legislature, for the implementation of
36this article.

37

16429.66.  

(a) It is the intent of the Legislature that the
38commission administer the fund and implement this article in
39coordination with the chancellor and the president to provide
P4    1financial assistance to eligible institutions for building retrofits
2that reduce the demand for energy.

3(b) The commission shall award financial assistance pursuant
4to this article, subject to the following:

5(1) The financial assistance shall be awarded only to eligible
6institutions.

7(2) The commission shall ensure that adequate energy audit,
8measurement, and verification procedures are employed to ensure
9that energy savings occur as a result of the financial assistance.

begin insert

10(c) (1) The commission shall consult with the Public Utilities
11Commission, the president, and the chancellor to expand existing
12partnerships to accomplish both of the following:

end insert
begin insert

13(A) Prioritize projects based on greenhouse gas reductions.

end insert
begin insert

14(B) Allow facilities not served by investor-owned utilities to
15receive funds under this article.

end insert
begin insert

16(2) The commission, in consultation with the Public Utilities
17Commission, shall align reporting requirements for eligible
18institutions pursuant to subdivision (i) to minimize administrative
19costs.

end insert
begin insert

20(d) All projects undertaken pursuant to this article shall be
21documented to ensure funds from investor-owned utilities’
22ratepayers shall only be spent for projects in compliance with the
23Public Utilities Commission requirements and ratepayer
24protections.

end insert
begin delete

25(c)

end delete

26begin insert(e)end insert (1) The commission shall adopt any regulations or guidelines
27necessary to implement this article. Notwithstanding any other
28law, regulations pursuant to this section may be adopted as
29emergency regulations pursuant to Chapter 3.5 (commencing with
30Section 11340) of Part 1 of Division 3.

31(2) For the purposes of Chapter 3.5 (commencing with Section
3211340) of Part 1 of Division 3, including Section 11349.6, the
33Office of Administrative Law shall consider the adoption of the
34regulations pursuant to this subdivision to be necessary for the
35immediate preservation of the public peace, health and safety, and
36general welfare.

begin delete

37(d)

end delete

38begin insert(f)end insert The commission, to the extent possible, shall utilize existing
39resources and expertise in implementing this article.

begin delete

40(e)

end delete

P5    1begin insert(g)end insert (1) Any eligible institution may submit an application to
2the commission for financial assistance from the fund for energy
3efficiency improvements. The form of the application shall be
4established by the commission.

5(2) The commission, in consultation with the chancellor and
6the president, shall establish a system to prioritize eligible
7institutions for financial assistance through this article.
8Prioritization shall take into consideration circumstances that shall
9include, but not be limited to, the age of the campus facilities, the
10proportion of students at the campus receiving Cal Grant awards,
11whether the facilities have been recently modernized, the potential
12for demand reduction, and the campus’s score from a recognized
13energy rating system or systems.

begin delete

14(f)

end delete

15begin insert(h)end insert This article shall not affect the eligibility of universities
16awarded financial assistance pursuant to this article to receive other
17incentives available from federal, state, and local government, or
18from public utilities or other sources, and to leverage the financial
19assistance with those incentives.

begin delete

20(g)

end delete

21begin insert(i)end insert Each year, on a schedule established by the commission,
22each eligible institution that receives financial assistance pursuant
23to this article shall report to the commission the amount of energy
24saved. Each eligible institution shall compute the cost of energy
25saved as a result of implementing projects supported by the
26financial assistance. The cost shall be calculated in a manner
27established by the commission. To satisfy the requirements of this
28subdivision in regard to a project, an eligible institution may submit
29to the commission a copy of an energy savings calculation that is
30required by any other funding source for the project.

begin delete

31(h)

end delete

32begin insert(j)end insert The commission shall determine, based on the annual energy
33savings reported by the eligible institutions pursuant to subdivision
34begin delete (g),end deletebegin insert (i),end insert the energy savings achieved pursuant to this article.



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