BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1953 (Skinner) - Higher Education Energy Efficiency Act:
financial assistance.
Amended: June 30, 2014 Policy Vote: EU&C 8-2
Urgency: No Mandate: No
Hearing Date: August 4, 2014 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1953 would require the CEC to develop a
financial assistance program for energy efficiency projects on
the University of California (UC) and California State
University campuses (CSU).
Fiscal Impact:
One-time costs of at least $200,000 to the Energy Resources
Program Account (General Fund) to develop the required
energy efficiency program.
On-going cost pressures, at least in the millions of
dollars, from the Energy Resources Program Account (General
Fund) to fund the program.
Future on-going costs of approximately $350,000 from the
Higher Education Energy Efficiency Fund (unknown) for the
CEC to administer the program.
Background: The California Energy Commission (CEC) is required
under existing law to develop and administer of series of
programs to provide cost-effective energy efficiency and
conservation contracts, grants, and loans to eligible entities.
Additional financial assistance is available through
investor-owned utilities (IOUs), as required by the California
Public Utilities Commission.
Proposed Law: This bill would create a new energy efficiency
program administered by the CEC to award financial assistance
for energy efficiency programs on the UC and CSU campuses.
Specifically, the CEC would be required to develop an
application form and a system to prioritize eligible projects.
The prioritization system would be developed in consultation
with the CSU Chancellor and the UC President. Once awards are
AB 1953 (Skinner)
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made, awardees would be required to report to the CEC on the
energy saved as a result of the project. The CEC would be
required to determine the annual collective energy savings as a
result of the program.
This bill would authorize the CEC to adopt any necessary
regulations for this program as emergency regulations.
This bill also establishes the Higher Education Energy
Efficiency Fund (fund) within the State Treasury to fund this
new program.
Staff Comments: To develop the program as required by the bill,
the CEC would have one-time costs of at least $200,000 to
develop the necessary regulations which would include public
workshops, the development of financial assistance agreements,
and development of technical program standards. The CEC notes
that start-up costs could increase depending on the scope of the
program and the size of the fund, especially if multiple public
hearings are necessary. The CSU and the UC would have minor and
absorbable costs to consult with the CEC on the required
creation of a prioritization system.
Staff notes that the bill requires the creation of the program
and establishes a fund for the program, but without any source
of funding for the fund. The CEC would be required to create the
program, and incur the costs discussed above, irrespective of
whether there is funding available. Until there are monies in
the newly created fund, these costs would be borne by the Energy
Resources Programs Account.
This bill would cause cost pressures to the Energy Resources
Program Account to fund the energy efficiency program that would
be developed as required by this bill until another funding
source is identified.
Once a funding source is identified for the program, the CEC
would have ongoing costs to administer the program. These
ongoing costs will be dependent on the amount of money available
for awards. However, at a minimum, the CEC would likely need two
PYs to support the program at an annual cost of $350,000 to
evaluate applications, provide technical assistance, administer
agreements, perform necessary energy audits, and provide program
oversight.
AB 1953 (Skinner)
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