BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1953
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1953 (Skinner) - As Amended:  April 29, 2014 

          Policy Committee:                              Higher  
          EducationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Establishes a program to provide grants and/or loans to fund  
            energy demand reduction projects at University of California  
            (UC) and California State University (CSU) campuses.

          2)Requires the California Energy Commission (CEC) to administer  
            the program, including developing an application form and  
            priority-setting criteria, awarding grants and loans, and  
            determining annual energy savings from funded projects.

           FISCAL EFFECT  

          1)The CEC would likely require at least two ongoing positions  
            ($200,000) to implement and administer the program.

          2)No funding is identified for the grants or loans, but a viable  
            grant program would cost at a minimum several million dollars  
            annually and a viable revolving loan program would require an  
            even larger initial outlay.

           COMMENTS  

           Purpose  . 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.   








                                                                  AB 1953
                                                                  Page  2

          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."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081