BILL ANALYSIS �
AB 1953
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Date of Hearing: April 1, 2014
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 1953 (Skinner) - As Introduced: February 19, 2014
SUBJECT : Higher Education Energy Efficiency Act: grants.
SUMMARY : Establishes the Higher Education Energy Efficiency
Act to provide grants to eligible institutions for building
retrofits that reduce energy demands. Specifically, this bill :
1)Finds and declares that the University of California (UC) and
the California State University (CSU) have committed to
lowering energy consumption and that the financial savings
associated with energy-efficient buildings, operations, and
maintenance could provide flexibility to enhance learning
environments and increase access to higher education.
2)Establishes the Higher Education Energy Efficiency Act and
Fund and directs the State Energy Resources Conservation and
Development Commission (Energy Commission) to, upon
appropriation by the Legislature and in coordination with the
UC President and CSU Chancellor, provide grants to eligible UC
and CSU campuses for building retrofits that reduce energy
demand.
3)Requires the Energy Commission to ensure that adequate energy
audit, measurement, and verification procedures are employed
to ensure that energy savings occur as a result of the grants.
4)Authorizes the Energy Commission to adopt regulations or
guidelines, including emergency regulations, and requires the
Energy Commission to utilize existing resources to implement
the requirements of this bill.
5)Authorizes an eligible institution to submit an application to
the Energy Commission for a grant from the fund and requires
the Energy Commission, in consultation with the CSU Chancellor
and the UC President, to prioritize eligible grants, taking
into consideration age of the facilities and any recent
modernization, proportion of students receiving Cal Grant
awards, the potential for demand reduction, and the campus's
energy score.
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6)Specifies that the provisions of this bill do not affect the
institution's eligibility to receive other public funding
incentives or to leverage the grant with those incentives.
7)Requires each institution that receives a grant to report to
the Energy Commission the amount of energy saved as a result
of implementing projects funded by the grant and requires the
Energy Commission to determine the total amount of energy
savings achieved.
EXISTING LAW establishes the University of California 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. Confers upon
the CSU Trustees the powers, duties, and functions with respect
to the management, administration, and control of the CSU
system. Establishes the Energy Commission, consisting of five
members appointed by the Governor and confirmed by the Senate,
tasked with forecasting energy needs, setting appliance and
building efficiency standards, conducting research and
developing programs, developing renewable and alternative energy
technologies, licensing large thermal power plants, and
responding to energy emergencies.
FISCAL EFFECT : Unknown
COMMENTS : Purpose of this bill . According to the author,
"after years of budget cuts, deferred maintenance, tuition hikes
and increasing fees, there is a need to reinvest in higher
education for long-term stability. Since many UC and CSU
facilities were built in the 1960's and 70's, before California
had building efficiency standards, one opportunity to reduce
economic cost from campus operations is through advanced energy
efficiency projects. Moreover, there is an opportunity for
California's higher education institutions to lead the nation in
novel energy projects and more efficient buildings, operations,
and maintenance. Most importantly, the financial savings from
such measures would provide flexibility to the universities to
pay for other upgrades that enhance the learning environment and
improve education for students."
Background . In 2006, the Global Warming Solutions Act (AB 32)
established the goal of reducing greenhouse gas emissions to
1990 levels by the year 2020, and directed the California Air
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Resources Board (ARB) to develop actions to reduce greenhouse
gasses and prepare a scoping plan, to be updated every five
years, to identify how best to reach the 2020 limit. The
initial reduction measures, including Low Carbon Fuel Standard,
Advanced Clean Car standards, and Cap-and-Trade have been
adopted over the last five years and implementation activities
are ongoing. The ARB is currently in the process of updating
the plan.
In November 2012, California voters approved Prop 39 to close a
corporate tax loophole and increase the state's annual corporate
tax revenues by as much as $1.1 billion. Prop 39 specified that
half of the revenue generated from 2013-2018, up to $550
million, should support energy efficiency and alternative energy
projects at public schools, colleges, universities and other
public buildings, as well as related public-private partnerships
and workforce training. Several bills were introduced in 2013
which proposed a variety of approaches for distribution of
funds. SB 73 (Budget and Fiscal Review Committee), Chapter 29,
Statutes of 2013, specified the allocation of $428 million
Proposition 39 revenues for energy efficiency projects for K-12
local educational agencies ($381 million) and community college
districts ($47 million). The State Energy Conservation
Assistance Account at the California Energy Commission received
$28 million and the California Workforce Investment Board
received $3 million to develop and implement a competitive grant
program for eligible community-based organizations and other
training workforce organizations preparing disadvantaged youth
or veterans for employment.
This bill does not currently identify a funding source for the
grant program created by this legislation. Committee staff
understands that the author's office is currently evaluating
funding options, including Cap-and-Trade, Proposition 39 and/or
one-time funding opportunities.
UC efforts . UC established a formal commitment to reduce
greenhouse gas emissions in 2007, when all ten Chancellors
signed the American College and University Presidents Climate
Commitment; UC established the goal of achieving year 2000
emission levels by 2014, 1990 levels by 2020, and climate
neutrality as soon as possible. In December 2011, UC leaders
issued a report outlining strategies for meeting these goals.
In fall of 2012, UC shared a comprehensive proposal with
policymakers seeking funding to leverage climate action
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programs. In November 2013, President Napolitano set a new goal
of UC achieving carbon neutrality by 2025. UC's approach to
achieving this goal includes: managing supply of wholesale
electricity to the five campuses eligible for direct access;
effective procurement of natural gas and biogas; management of
Cap-and-Trade and other environmental attribute programs; and,
securing Prop 39 funds to support campus energy efficiency and
renewable energy projects.
CSU projects . CSU has similarly established a commitment to
sustainability through efficient operation, design and
construction of campuses. CSU aims to increase on-campus clean
energy generation, utilize smart building controls, and increase
student involvement and curriculum development to prepare future
"green" professionals. CSU also seeks to use funding for energy
efficiency projects, demand reduction programs, and renewable
on-site generation to move toward the systemwide carbon
reduction goal.
REGISTERED SUPPORT / OPPOSITION :
Support
Sierra Club of California
University of California
Opposition
None on file.
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960