15814.10. To help implement the policy set forth in Section 25008
of the Public Resources Code, the board may develop energy and water
conservation and cogeneration and alternative energy and water supply
sources at state facilities in accordance with this chapter.
The intent of the Legislature in enacting this chapter is to
provide a mix of financing options for the development of cost saving
state energy and water conservation projects. It is further the
intent of the Legislature that, prior to using revenue bonds, the
board consider other financing options available and the effect of
the bond issuance on the bond market.
15814.11. For purposes of this chapter, the following terms have
the following meanings:
(a) "Public building" means a public building as defined in
Section 15802, and includes the cogeneration and alternative energy
equipment, water conservation equipment, and conservation measures
which the board is authorized by this chapter to acquire and
construct. "Public Building" also means any publicly funded school
that includes kindergarten and grades 1 to 12, inclusive, or any
portion of those grades, provided that publicly funded schools that
include kindergarten and grades 1 to 12, inclusive, shall be
authorized to finance only conservation measures and water
conservation equipment as defined in subdivisions (e) and (g).
(b) "Energy service contract" means a contract entered into by the
board or any other state agency with any person, including, but not
limited to, an individual, company, corporation, partnership, state
agency, or other entity or group of entities, pursuant to which the
person will provide electrical or thermal energy or water or water
conservation or energy conservation measures.
(c) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
(d) "Alternative energy equipment" means equipment for the
production or conversion of energy from alternative sources,
including, but not limited to, solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, or any other source of energy or
water, the efficient use of which will reduce the use of fossil or
nuclear fuels or water from established sources of supply.
(e) "Conservation measures" means equipment, maintenance, meters,
load management techniques and equipment, or other measures to reduce
energy or water use or make for a more efficient use of energy or
water.
(f) "State agency" means any state agency, board, department or
commission, including, but not limited to, the entities specified in
Section 15814.12, and any school district as defined in Section 80 of
the Education Code.
(g) "Water conservation equipment" means any device or
modification that reduces water use from established water sources.
15814.12. (a) Without obtaining the authorization required by
Section 15808, the board may acquire, and engage in the construction
of, cogeneration equipment, alternative energy equipment, or
conservation measures, and any combination thereof, and enter into
energy service contracts, at any structure, building, facility, site,
or work used, owned or hereafter acquired by the state agency,
including, but not limited to, the facilities of the California State
University and Colleges, the Department of General Services, state
prisons, hospitals, and other agencies and the community colleges,
but only with the consent of the state agency.
(b) No cogeneration equipment or alternative energy equipment or
water conservation equipment shall be acquired or constructed, and no
energy service contract shall be entered into, by the board unless
it determines that the anticipated cost to the state agency
purchasing thermal or electrical energy or water provided by the
equipment or under an energy service contract has been found through
life-cycle cost analysis to be cost effective over the life of the
equipment installed or over the term of the energy service contract.
Equipment, conservation measures, or energy service contracts shall
be anticipated to provide cost savings to the state during the useful
life of the equipment or conservation measures under Section 14684,
Sections 14710 to 14713, inclusive, or Section 15814.30 of this code,
under Section 25008 of the Public Resources Code, or under Section
388 of the Public Utilities Code.
(c) Alternatively, the board may execute agreements to finance the
construction of cogeneration equipment, alternative energy
equipment, water conservation equipment, or conservation measures,
and any combination thereof, by the state agency, including the
University of California, to be owned by the state agency, in
exchange for repayment of the financing and all costs and expenses
related thereto from revenues resulting from sales of electricity or
thermal energy or water from the facilities and measures or from
funding which otherwise would have been used for purchase of
electricity, water, and thermal energy required by the state agency
but which is derived from the facilities and measures.
(d) This section shall not prohibit, limit, or supersede more
stringent green building requirements for any structure, building,
facility, site, or work.
15814.13. The board may contract to sell or exchange electricity
produced by cogeneration equipment and alternative energy equipment
acquired by the board to or with any investor-owned utility or
municipal utility or state agency, at those rates and upon those
terms that are approved by the board. Any contract may provide for a
commitment of firm electrical capacity. The board may also contract
to sell or exchange water or thermal energy produced by cogeneration
or alternative energy equipment or water conservation equipment
acquired by the board to or with any investor-owned utility or
municipal utility, state agency, or any other person, at those rates
and upon those terms that are approved by the board. This
electricity, water, and thermal energy may be sold to or exchanged
with nonstate purchasers only if the board determines that these
sales or exchanges will increase the economic benefit to the state.
The board may contract to provide conservation services through the
use of conservation measures to any state agency at those rates and
upon those terms that are approved by the board.
15814.14. (a) Any state agency may enter into a contract with the
board for the purchase or exchange of thermal or electrical energy or
water, or to acquire conservation services through the use of
conservation measures, for a term not exceeding 35 years, at those
rates and upon those terms that are approved by the agency and the
board.
(b) The Department of General Services, with the consent of the
state agency having jurisdiction over the property, or any other
state agency with the approval of the Department of General Services,
may lease as lessor for terms of up to 35 years any structure,
building, facility, work, or land, owned or acquired by the agency,
to any person, including the board, to permit the board to enter into
an energy service contract with that person, or to permit the board
to undertake other projects authorized under this chapter, at those
rates and upon those terms that may be approved by the state agency
and the board.
15814.16. Notwithstanding any other provision of law, the amount
necessary to pay monthly for electrical or thermal energy or water or
conservation measures for any state agency under an energy service
contract, or to pay for conservation measures or electrical or
thermal energy or water received by any state agency from
cogeneration or alternative energy equipment authorized to be
constructed or acquired under this part or Part 10.5 (commencing with
Section 15750), is hereby appropriated each fiscal year payable from
the fund in the State Treasury from which an agency derives its
appropriation for support, and shall become available only if the
payments are due during a period that the state is operating without
funds appropriated by the Budget Act for that fiscal year or if the
amount required to pay the charges has not been included in the
Budget Act for that fiscal year and the Department of Finance
certifies to the Controller that sufficient funds are available for
the support of the agency for these services. Also, in order for the
appropriation to be available, the board shall certify that the
payments for the year in question are anticipated to be less than
would result from the purchase of electrical or thermal energy or
water avoided by purchases under this part or Part 10.5 (commencing
with Section 15750). This appropriation shall be inoperative as to
any facility that is transferred to the jurisdiction of the
Department of General Services or another state agency pursuant to
Section 15814.17 or 15816, to any facility transferred to a state
agency pursuant to a joint powers agreement, or to any facility the
title of which has vested in the Regents of the University of
California, the Trustees of the California State University, the
Board of Governors of the California Maritime Academy, or any
community college district pursuant to subdivision (b) of Section
15816.
15814.17. Notwithstanding Section 15816, the public buildings
acquired or constructed by the board pursuant to subdivisions (a) and
(b) of Section 15814.12 shall remain under the jurisdiction of, and
shall be operated and maintained by, the board until the board
determines that the revenues, rentals, and receipts therefrom are no
longer required to enable the board to properly perform the duties
authorized by subdivisions (a) and (b) of Section 15814.12.
Thereafter, each such public building may be placed under the
jurisdiction of the Department of General Services pursuant to
Section 15816 or, if the facility served is under the jurisdiction of
another state agency, under that agency.
15814.18. The board shall employ the Energy Assessments Program of
the Department of General Services to assist the board in performing
its duties, including the making of recommendations as to projects to
be undertaken by the board and preparing the annual report described
in Section 15814.19. The board shall employ such other persons as
are necessary to enable it properly to perform the duties imposed
upon it by this chapter when services cannot be provided by the
Department of General Services.
15814.19. The board shall publish and transmit to the Legislature
an annual report, within four months after the end of each fiscal
year, describing the activities of the board during that year.
15814.20. The board shall not enter into leases and energy service
contracts authorized under this chapter sooner than 15 days after
notification in writing of the necessity therefor has been submitted
to the Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the fiscal committees of each house, or sooner than
whatever lesser time the chairperson of the joint committee, or his
or her designee, may in each instance determine. At the request of
the chairperson of the joint committee, the joint committee may hold
a hearing within 15 days of receipt of the notification. If a hearing
is held, the affected agencies shall be provided all information
available to the joint committee at least 10 days in advance of the
hearing. In the event that a hearing is conducted, the joint
committee may recommend to the board approval, modification, or
rejection of leases or energy service contracts.
15814.21. (a) In addition to revenues calculated for apportionment
to community college districts pursuant to Article 2 (commencing with
Section 84750) of Chapter 5 of Part 50 of the Education Code, if a
community college capital outlay project has been approved by the
Board of Governors of the California Community Colleges, the
Chancellor of the California Community Colleges shall apportion state
aid equal to the amount necessary for each district to meet its
energy service contract obligation determined pursuant to this
chapter. It is the intent of the Legislature that these funds be
appropriated annually as a part of the state's general apportionment
funds for the community colleges.
(b) If a community college district enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
the district, as a part of that energy service contract, shall
authorize the chancellor and Controller to withhold from its annual
apportionment the amount of funds necessary to satisfy its annual
energy service contract obligation to the State Public Works Board.
The agreement shall include authorization to withhold the additional
apportionment amount and the amount determined to be the district's
proportional share of the energy service contract obligation as
determined pursuant to subdivision (a). The authorization shall have
precedence over other expenditure obligations of the district. The
chancellor shall certify the amounts, by district, to the Controller.
The Controller shall withhold the amount so reported for each
district and, acting on behalf of each district, shall transfer the
appropriate amount from Section B of the State School Fund to the
State Public Works Board for the purpose of payment of the debt
service obligation for the bonds sold to finance the projects.
15814.22. The Department of General Services, in consultation with
the California Energy Resources Conservation and Development
Commission and other state agencies and departments, shall develop a
multiyear plan, to be updated biennially, with the goal of exploiting
all practicable and cost-effective energy efficiency measures in
state facilities. The department shall coordinate plan implementation
efforts, and make recommendations to the Governor and the
Legislature to achieve energy efficiency goals for state facilities.
15814.23. The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the State Energy
Resources Conservation and Development Commission pursuant to Section
25402 of the Public Resources Code. In the design and construction
of new state buildings, the department or other responsible state
agency shall also consider additional state-of-the-art energy
efficiency design measures and equipment, beyond those required by
the standards, that are cost-effective and feasible.
15814.24. (a) The Superintendent of Public Instruction shall
apportion state aid equal to the amount necessary for each school
district to meet its energy service contract obligation determined
pursuant to this chapter. It is the intent of the Legislature that
these funds be appropriated annually as a part of the state's general
apportionment funds for kindergarten through grade 12 schools.
(b) If a school district enters into an energy service contract
with the Public Works Board pursuant to this chapter, the district
shall, as a part of that energy service contract, authorize the
Superintendent of Public Instruction and the Controller to withhold
from its annual apportionment the amount of funds necessary to
satisfy its annual energy service contract obligation to the Public
Works Board. The agreement shall include authorization to withhold
the additional apportionment amount and the amount determined to be
the district's proportional share of the energy service contract
obligation as determined pursuant to subdivision (a). The
superintendent shall certify the amounts, by county, to the
Controller. The Controller shall withhold the amount so reported for
each county and shall, acting on behalf of each county, transfer the
appropriate amount from Section A of the State School Fund to the
Public Works Board for the purpose of payment of the debt service
obligation for the bonds sold to finance the projects. Any payment
made from an apportionment by the Controller pursuant to this section
shall be deemed to be an allocation to a school district for
purposes of subdivision (b) of Section 8 of Article XVI of the
California Constitution for purposes of Chapter 2 (commencing with
Section 41200) of Part 24 of the Education Code.
15814.25. Energy conservation measures eligible for financing by
kindergarten through grade 12 schools shall be limited to those
measures recommended pursuant to an energy audit provided by the
State Energy Resources Conservation and Development Commission under
its existing authority.
15814.25. Notwithstanding subdivision (f) of Section 15814.11, for
the purposes of this chapter "state agency" also shall include any
local government as defined in subdivision (b) of Section 5921.
15814.26. A local government that enters into an energy service
contract with the State Public Works Board pursuant to this chapter
shall do both of the following:
(a) Include in the contract specific provisions to meet its energy
service contract obligation determined pursuant to this chapter.
(b) Authorize the Controller, as part of the energy service
contract, to withhold sufficient payments, from specific moneys that
it otherwise would receive from the state, in order to meet its
annual energy service contract obligation determined pursuant to this
chapter, if the provisions of subdivision (a) are for any reason
insufficient to meet that annual energy service contract obligation.
15814.27. If a local government enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
its governing body shall annually budget and appropriate the amounts
payable under that energy service contract during that fiscal year.
If the governing body fails or neglects to make the appropriations,
the officer of the local government with responsibility for
disbursing its funds shall transfer, from any money available in any
fund of the treasury of that local government, the sums necessary to
meet its energy service contract obligation determined pursuant to
this chapter, and this transfer shall have the same force and effect
as it would have had if the required appropriation had been made by
the governing body of the local government.
15814.28. The department shall, no later than March 1, 2009, and
biennially thereafter, make the recommendations required in Section
15814.22, and report on all of the following for projects under its
jurisdiction:
(a) The progress made toward implementing energy efficiency
measures in state facilities.
(b) The most common energy efficiency measures being implemented.
(c) The obstacles preventing further implementation of energy
efficiency measures.
(d) How current efforts and ideas can be incorporated into the
Governor's five-year infrastructure plan described in Section 13102.
15814.10. To help implement the policy set forth in Section 25008
of the Public Resources Code, the board may develop energy and water
conservation and cogeneration and alternative energy and water supply
sources at state facilities in accordance with this chapter.
The intent of the Legislature in enacting this chapter is to
provide a mix of financing options for the development of cost saving
state energy and water conservation projects. It is further the
intent of the Legislature that, prior to using revenue bonds, the
board consider other financing options available and the effect of
the bond issuance on the bond market.
15814.11. For purposes of this chapter, the following terms have
the following meanings:
(a) "Public building" means a public building as defined in
Section 15802, and includes the cogeneration and alternative energy
equipment, water conservation equipment, and conservation measures
which the board is authorized by this chapter to acquire and
construct. "Public Building" also means any publicly funded school
that includes kindergarten and grades 1 to 12, inclusive, or any
portion of those grades, provided that publicly funded schools that
include kindergarten and grades 1 to 12, inclusive, shall be
authorized to finance only conservation measures and water
conservation equipment as defined in subdivisions (e) and (g).
(b) "Energy service contract" means a contract entered into by the
board or any other state agency with any person, including, but not
limited to, an individual, company, corporation, partnership, state
agency, or other entity or group of entities, pursuant to which the
person will provide electrical or thermal energy or water or water
conservation or energy conservation measures.
(c) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
(d) "Alternative energy equipment" means equipment for the
production or conversion of energy from alternative sources,
including, but not limited to, solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, or any other source of energy or
water, the efficient use of which will reduce the use of fossil or
nuclear fuels or water from established sources of supply.
(e) "Conservation measures" means equipment, maintenance, meters,
load management techniques and equipment, or other measures to reduce
energy or water use or make for a more efficient use of energy or
water.
(f) "State agency" means any state agency, board, department or
commission, including, but not limited to, the entities specified in
Section 15814.12, and any school district as defined in Section 80 of
the Education Code.
(g) "Water conservation equipment" means any device or
modification that reduces water use from established water sources.
15814.12. (a) Without obtaining the authorization required by
Section 15808, the board may acquire, and engage in the construction
of, cogeneration equipment, alternative energy equipment, or
conservation measures, and any combination thereof, and enter into
energy service contracts, at any structure, building, facility, site,
or work used, owned or hereafter acquired by the state agency,
including, but not limited to, the facilities of the California State
University and Colleges, the Department of General Services, state
prisons, hospitals, and other agencies and the community colleges,
but only with the consent of the state agency.
(b) No cogeneration equipment or alternative energy equipment or
water conservation equipment shall be acquired or constructed, and no
energy service contract shall be entered into, by the board unless
it determines that the anticipated cost to the state agency
purchasing thermal or electrical energy or water provided by the
equipment or under an energy service contract has been found through
life-cycle cost analysis to be cost effective over the life of the
equipment installed or over the term of the energy service contract.
Equipment, conservation measures, or energy service contracts shall
be anticipated to provide cost savings to the state during the useful
life of the equipment or conservation measures under Section 14684,
Sections 14710 to 14713, inclusive, or Section 15814.30 of this code,
under Section 25008 of the Public Resources Code, or under Section
388 of the Public Utilities Code.
(c) Alternatively, the board may execute agreements to finance the
construction of cogeneration equipment, alternative energy
equipment, water conservation equipment, or conservation measures,
and any combination thereof, by the state agency, including the
University of California, to be owned by the state agency, in
exchange for repayment of the financing and all costs and expenses
related thereto from revenues resulting from sales of electricity or
thermal energy or water from the facilities and measures or from
funding which otherwise would have been used for purchase of
electricity, water, and thermal energy required by the state agency
but which is derived from the facilities and measures.
(d) This section shall not prohibit, limit, or supersede more
stringent green building requirements for any structure, building,
facility, site, or work.
15814.13. The board may contract to sell or exchange electricity
produced by cogeneration equipment and alternative energy equipment
acquired by the board to or with any investor-owned utility or
municipal utility or state agency, at those rates and upon those
terms that are approved by the board. Any contract may provide for a
commitment of firm electrical capacity. The board may also contract
to sell or exchange water or thermal energy produced by cogeneration
or alternative energy equipment or water conservation equipment
acquired by the board to or with any investor-owned utility or
municipal utility, state agency, or any other person, at those rates
and upon those terms that are approved by the board. This
electricity, water, and thermal energy may be sold to or exchanged
with nonstate purchasers only if the board determines that these
sales or exchanges will increase the economic benefit to the state.
The board may contract to provide conservation services through the
use of conservation measures to any state agency at those rates and
upon those terms that are approved by the board.
15814.14. (a) Any state agency may enter into a contract with the
board for the purchase or exchange of thermal or electrical energy or
water, or to acquire conservation services through the use of
conservation measures, for a term not exceeding 35 years, at those
rates and upon those terms that are approved by the agency and the
board.
(b) The Department of General Services, with the consent of the
state agency having jurisdiction over the property, or any other
state agency with the approval of the Department of General Services,
may lease as lessor for terms of up to 35 years any structure,
building, facility, work, or land, owned or acquired by the agency,
to any person, including the board, to permit the board to enter into
an energy service contract with that person, or to permit the board
to undertake other projects authorized under this chapter, at those
rates and upon those terms that may be approved by the state agency
and the board.
15814.16. Notwithstanding any other provision of law, the amount
necessary to pay monthly for electrical or thermal energy or water or
conservation measures for any state agency under an energy service
contract, or to pay for conservation measures or electrical or
thermal energy or water received by any state agency from
cogeneration or alternative energy equipment authorized to be
constructed or acquired under this part or Part 10.5 (commencing with
Section 15750), is hereby appropriated each fiscal year payable from
the fund in the State Treasury from which an agency derives its
appropriation for support, and shall become available only if the
payments are due during a period that the state is operating without
funds appropriated by the Budget Act for that fiscal year or if the
amount required to pay the charges has not been included in the
Budget Act for that fiscal year and the Department of Finance
certifies to the Controller that sufficient funds are available for
the support of the agency for these services. Also, in order for the
appropriation to be available, the board shall certify that the
payments for the year in question are anticipated to be less than
would result from the purchase of electrical or thermal energy or
water avoided by purchases under this part or Part 10.5 (commencing
with Section 15750). This appropriation shall be inoperative as to
any facility that is transferred to the jurisdiction of the
Department of General Services or another state agency pursuant to
Section 15814.17 or 15816, to any facility transferred to a state
agency pursuant to a joint powers agreement, or to any facility the
title of which has vested in the Regents of the University of
California, the Trustees of the California State University, the
Board of Governors of the California Maritime Academy, or any
community college district pursuant to subdivision (b) of Section
15816.
15814.17. Notwithstanding Section 15816, the public buildings
acquired or constructed by the board pursuant to subdivisions (a) and
(b) of Section 15814.12 shall remain under the jurisdiction of, and
shall be operated and maintained by, the board until the board
determines that the revenues, rentals, and receipts therefrom are no
longer required to enable the board to properly perform the duties
authorized by subdivisions (a) and (b) of Section 15814.12.
Thereafter, each such public building may be placed under the
jurisdiction of the Department of General Services pursuant to
Section 15816 or, if the facility served is under the jurisdiction of
another state agency, under that agency.
15814.18. The board shall employ the Energy Assessments Program of
the Department of General Services to assist the board in performing
its duties, including the making of recommendations as to projects to
be undertaken by the board and preparing the annual report described
in Section 15814.19. The board shall employ such other persons as
are necessary to enable it properly to perform the duties imposed
upon it by this chapter when services cannot be provided by the
Department of General Services.
15814.19. The board shall publish and transmit to the Legislature
an annual report, within four months after the end of each fiscal
year, describing the activities of the board during that year.
15814.20. The board shall not enter into leases and energy service
contracts authorized under this chapter sooner than 15 days after
notification in writing of the necessity therefor has been submitted
to the Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the fiscal committees of each house, or sooner than
whatever lesser time the chairperson of the joint committee, or his
or her designee, may in each instance determine. At the request of
the chairperson of the joint committee, the joint committee may hold
a hearing within 15 days of receipt of the notification. If a hearing
is held, the affected agencies shall be provided all information
available to the joint committee at least 10 days in advance of the
hearing. In the event that a hearing is conducted, the joint
committee may recommend to the board approval, modification, or
rejection of leases or energy service contracts.
15814.21. (a) In addition to revenues calculated for apportionment
to community college districts pursuant to Article 2 (commencing with
Section 84750) of Chapter 5 of Part 50 of the Education Code, if a
community college capital outlay project has been approved by the
Board of Governors of the California Community Colleges, the
Chancellor of the California Community Colleges shall apportion state
aid equal to the amount necessary for each district to meet its
energy service contract obligation determined pursuant to this
chapter. It is the intent of the Legislature that these funds be
appropriated annually as a part of the state's general apportionment
funds for the community colleges.
(b) If a community college district enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
the district, as a part of that energy service contract, shall
authorize the chancellor and Controller to withhold from its annual
apportionment the amount of funds necessary to satisfy its annual
energy service contract obligation to the State Public Works Board.
The agreement shall include authorization to withhold the additional
apportionment amount and the amount determined to be the district's
proportional share of the energy service contract obligation as
determined pursuant to subdivision (a). The authorization shall have
precedence over other expenditure obligations of the district. The
chancellor shall certify the amounts, by district, to the Controller.
The Controller shall withhold the amount so reported for each
district and, acting on behalf of each district, shall transfer the
appropriate amount from Section B of the State School Fund to the
State Public Works Board for the purpose of payment of the debt
service obligation for the bonds sold to finance the projects.
15814.22. The Department of General Services, in consultation with
the California Energy Resources Conservation and Development
Commission and other state agencies and departments, shall develop a
multiyear plan, to be updated biennially, with the goal of exploiting
all practicable and cost-effective energy efficiency measures in
state facilities. The department shall coordinate plan implementation
efforts, and make recommendations to the Governor and the
Legislature to achieve energy efficiency goals for state facilities.
15814.23. The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the State Energy
Resources Conservation and Development Commission pursuant to Section
25402 of the Public Resources Code. In the design and construction
of new state buildings, the department or other responsible state
agency shall also consider additional state-of-the-art energy
efficiency design measures and equipment, beyond those required by
the standards, that are cost-effective and feasible.
15814.24. (a) The Superintendent of Public Instruction shall
apportion state aid equal to the amount necessary for each school
district to meet its energy service contract obligation determined
pursuant to this chapter. It is the intent of the Legislature that
these funds be appropriated annually as a part of the state's general
apportionment funds for kindergarten through grade 12 schools.
(b) If a school district enters into an energy service contract
with the Public Works Board pursuant to this chapter, the district
shall, as a part of that energy service contract, authorize the
Superintendent of Public Instruction and the Controller to withhold
from its annual apportionment the amount of funds necessary to
satisfy its annual energy service contract obligation to the Public
Works Board. The agreement shall include authorization to withhold
the additional apportionment amount and the amount determined to be
the district's proportional share of the energy service contract
obligation as determined pursuant to subdivision (a). The
superintendent shall certify the amounts, by county, to the
Controller. The Controller shall withhold the amount so reported for
each county and shall, acting on behalf of each county, transfer the
appropriate amount from Section A of the State School Fund to the
Public Works Board for the purpose of payment of the debt service
obligation for the bonds sold to finance the projects. Any payment
made from an apportionment by the Controller pursuant to this section
shall be deemed to be an allocation to a school district for
purposes of subdivision (b) of Section 8 of Article XVI of the
California Constitution for purposes of Chapter 2 (commencing with
Section 41200) of Part 24 of the Education Code.
15814.25. Energy conservation measures eligible for financing by
kindergarten through grade 12 schools shall be limited to those
measures recommended pursuant to an energy audit provided by the
State Energy Resources Conservation and Development Commission under
its existing authority.
15814.25. Notwithstanding subdivision (f) of Section 15814.11, for
the purposes of this chapter "state agency" also shall include any
local government as defined in subdivision (b) of Section 5921.
15814.26. A local government that enters into an energy service
contract with the State Public Works Board pursuant to this chapter
shall do both of the following:
(a) Include in the contract specific provisions to meet its energy
service contract obligation determined pursuant to this chapter.
(b) Authorize the Controller, as part of the energy service
contract, to withhold sufficient payments, from specific moneys that
it otherwise would receive from the state, in order to meet its
annual energy service contract obligation determined pursuant to this
chapter, if the provisions of subdivision (a) are for any reason
insufficient to meet that annual energy service contract obligation.
15814.27. If a local government enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
its governing body shall annually budget and appropriate the amounts
payable under that energy service contract during that fiscal year.
If the governing body fails or neglects to make the appropriations,
the officer of the local government with responsibility for
disbursing its funds shall transfer, from any money available in any
fund of the treasury of that local government, the sums necessary to
meet its energy service contract obligation determined pursuant to
this chapter, and this transfer shall have the same force and effect
as it would have had if the required appropriation had been made by
the governing body of the local government.
15814.28. The department shall, no later than March 1, 2009, and
biennially thereafter, make the recommendations required in Section
15814.22, and report on all of the following for projects under its
jurisdiction:
(a) The progress made toward implementing energy efficiency
measures in state facilities.
(b) The most common energy efficiency measures being implemented.
(c) The obstacles preventing further implementation of energy
efficiency measures.
(d) How current efforts and ideas can be incorporated into the
Governor's five-year infrastructure plan described in Section 13102.
15814.10. To help implement the policy set forth in Section 25008
of the Public Resources Code, the board may develop energy and water
conservation and cogeneration and alternative energy and water supply
sources at state facilities in accordance with this chapter.
The intent of the Legislature in enacting this chapter is to
provide a mix of financing options for the development of cost saving
state energy and water conservation projects. It is further the
intent of the Legislature that, prior to using revenue bonds, the
board consider other financing options available and the effect of
the bond issuance on the bond market.
15814.11. For purposes of this chapter, the following terms have
the following meanings:
(a) "Public building" means a public building as defined in
Section 15802, and includes the cogeneration and alternative energy
equipment, water conservation equipment, and conservation measures
which the board is authorized by this chapter to acquire and
construct. "Public Building" also means any publicly funded school
that includes kindergarten and grades 1 to 12, inclusive, or any
portion of those grades, provided that publicly funded schools that
include kindergarten and grades 1 to 12, inclusive, shall be
authorized to finance only conservation measures and water
conservation equipment as defined in subdivisions (e) and (g).
(b) "Energy service contract" means a contract entered into by the
board or any other state agency with any person, including, but not
limited to, an individual, company, corporation, partnership, state
agency, or other entity or group of entities, pursuant to which the
person will provide electrical or thermal energy or water or water
conservation or energy conservation measures.
(c) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
(d) "Alternative energy equipment" means equipment for the
production or conversion of energy from alternative sources,
including, but not limited to, solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, or any other source of energy or
water, the efficient use of which will reduce the use of fossil or
nuclear fuels or water from established sources of supply.
(e) "Conservation measures" means equipment, maintenance, meters,
load management techniques and equipment, or other measures to reduce
energy or water use or make for a more efficient use of energy or
water.
(f) "State agency" means any state agency, board, department or
commission, including, but not limited to, the entities specified in
Section 15814.12, and any school district as defined in Section 80 of
the Education Code.
(g) "Water conservation equipment" means any device or
modification that reduces water use from established water sources.
15814.12. (a) Without obtaining the authorization required by
Section 15808, the board may acquire, and engage in the construction
of, cogeneration equipment, alternative energy equipment, or
conservation measures, and any combination thereof, and enter into
energy service contracts, at any structure, building, facility, site,
or work used, owned or hereafter acquired by the state agency,
including, but not limited to, the facilities of the California State
University and Colleges, the Department of General Services, state
prisons, hospitals, and other agencies and the community colleges,
but only with the consent of the state agency.
(b) No cogeneration equipment or alternative energy equipment or
water conservation equipment shall be acquired or constructed, and no
energy service contract shall be entered into, by the board unless
it determines that the anticipated cost to the state agency
purchasing thermal or electrical energy or water provided by the
equipment or under an energy service contract has been found through
life-cycle cost analysis to be cost effective over the life of the
equipment installed or over the term of the energy service contract.
Equipment, conservation measures, or energy service contracts shall
be anticipated to provide cost savings to the state during the useful
life of the equipment or conservation measures under Section 14684,
Sections 14710 to 14713, inclusive, or Section 15814.30 of this code,
under Section 25008 of the Public Resources Code, or under Section
388 of the Public Utilities Code.
(c) Alternatively, the board may execute agreements to finance the
construction of cogeneration equipment, alternative energy
equipment, water conservation equipment, or conservation measures,
and any combination thereof, by the state agency, including the
University of California, to be owned by the state agency, in
exchange for repayment of the financing and all costs and expenses
related thereto from revenues resulting from sales of electricity or
thermal energy or water from the facilities and measures or from
funding which otherwise would have been used for purchase of
electricity, water, and thermal energy required by the state agency
but which is derived from the facilities and measures.
(d) This section shall not prohibit, limit, or supersede more
stringent green building requirements for any structure, building,
facility, site, or work.
15814.13. The board may contract to sell or exchange electricity
produced by cogeneration equipment and alternative energy equipment
acquired by the board to or with any investor-owned utility or
municipal utility or state agency, at those rates and upon those
terms that are approved by the board. Any contract may provide for a
commitment of firm electrical capacity. The board may also contract
to sell or exchange water or thermal energy produced by cogeneration
or alternative energy equipment or water conservation equipment
acquired by the board to or with any investor-owned utility or
municipal utility, state agency, or any other person, at those rates
and upon those terms that are approved by the board. This
electricity, water, and thermal energy may be sold to or exchanged
with nonstate purchasers only if the board determines that these
sales or exchanges will increase the economic benefit to the state.
The board may contract to provide conservation services through the
use of conservation measures to any state agency at those rates and
upon those terms that are approved by the board.
15814.14. (a) Any state agency may enter into a contract with the
board for the purchase or exchange of thermal or electrical energy or
water, or to acquire conservation services through the use of
conservation measures, for a term not exceeding 35 years, at those
rates and upon those terms that are approved by the agency and the
board.
(b) The Department of General Services, with the consent of the
state agency having jurisdiction over the property, or any other
state agency with the approval of the Department of General Services,
may lease as lessor for terms of up to 35 years any structure,
building, facility, work, or land, owned or acquired by the agency,
to any person, including the board, to permit the board to enter into
an energy service contract with that person, or to permit the board
to undertake other projects authorized under this chapter, at those
rates and upon those terms that may be approved by the state agency
and the board.
15814.16. Notwithstanding any other provision of law, the amount
necessary to pay monthly for electrical or thermal energy or water or
conservation measures for any state agency under an energy service
contract, or to pay for conservation measures or electrical or
thermal energy or water received by any state agency from
cogeneration or alternative energy equipment authorized to be
constructed or acquired under this part or Part 10.5 (commencing with
Section 15750), is hereby appropriated each fiscal year payable from
the fund in the State Treasury from which an agency derives its
appropriation for support, and shall become available only if the
payments are due during a period that the state is operating without
funds appropriated by the Budget Act for that fiscal year or if the
amount required to pay the charges has not been included in the
Budget Act for that fiscal year and the Department of Finance
certifies to the Controller that sufficient funds are available for
the support of the agency for these services. Also, in order for the
appropriation to be available, the board shall certify that the
payments for the year in question are anticipated to be less than
would result from the purchase of electrical or thermal energy or
water avoided by purchases under this part or Part 10.5 (commencing
with Section 15750). This appropriation shall be inoperative as to
any facility that is transferred to the jurisdiction of the
Department of General Services or another state agency pursuant to
Section 15814.17 or 15816, to any facility transferred to a state
agency pursuant to a joint powers agreement, or to any facility the
title of which has vested in the Regents of the University of
California, the Trustees of the California State University, the
Board of Governors of the California Maritime Academy, or any
community college district pursuant to subdivision (b) of Section
15816.
15814.17. Notwithstanding Section 15816, the public buildings
acquired or constructed by the board pursuant to subdivisions (a) and
(b) of Section 15814.12 shall remain under the jurisdiction of, and
shall be operated and maintained by, the board until the board
determines that the revenues, rentals, and receipts therefrom are no
longer required to enable the board to properly perform the duties
authorized by subdivisions (a) and (b) of Section 15814.12.
Thereafter, each such public building may be placed under the
jurisdiction of the Department of General Services pursuant to
Section 15816 or, if the facility served is under the jurisdiction of
another state agency, under that agency.
15814.18. The board shall employ the Energy Assessments Program of
the Department of General Services to assist the board in performing
its duties, including the making of recommendations as to projects to
be undertaken by the board and preparing the annual report described
in Section 15814.19. The board shall employ such other persons as
are necessary to enable it properly to perform the duties imposed
upon it by this chapter when services cannot be provided by the
Department of General Services.
15814.19. The board shall publish and transmit to the Legislature
an annual report, within four months after the end of each fiscal
year, describing the activities of the board during that year.
15814.20. The board shall not enter into leases and energy service
contracts authorized under this chapter sooner than 15 days after
notification in writing of the necessity therefor has been submitted
to the Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the fiscal committees of each house, or sooner than
whatever lesser time the chairperson of the joint committee, or his
or her designee, may in each instance determine. At the request of
the chairperson of the joint committee, the joint committee may hold
a hearing within 15 days of receipt of the notification. If a hearing
is held, the affected agencies shall be provided all information
available to the joint committee at least 10 days in advance of the
hearing. In the event that a hearing is conducted, the joint
committee may recommend to the board approval, modification, or
rejection of leases or energy service contracts.
15814.21. (a) In addition to revenues calculated for apportionment
to community college districts pursuant to Article 2 (commencing with
Section 84750) of Chapter 5 of Part 50 of the Education Code, if a
community college capital outlay project has been approved by the
Board of Governors of the California Community Colleges, the
Chancellor of the California Community Colleges shall apportion state
aid equal to the amount necessary for each district to meet its
energy service contract obligation determined pursuant to this
chapter. It is the intent of the Legislature that these funds be
appropriated annually as a part of the state's general apportionment
funds for the community colleges.
(b) If a community college district enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
the district, as a part of that energy service contract, shall
authorize the chancellor and Controller to withhold from its annual
apportionment the amount of funds necessary to satisfy its annual
energy service contract obligation to the State Public Works Board.
The agreement shall include authorization to withhold the additional
apportionment amount and the amount determined to be the district's
proportional share of the energy service contract obligation as
determined pursuant to subdivision (a). The authorization shall have
precedence over other expenditure obligations of the district. The
chancellor shall certify the amounts, by district, to the Controller.
The Controller shall withhold the amount so reported for each
district and, acting on behalf of each district, shall transfer the
appropriate amount from Section B of the State School Fund to the
State Public Works Board for the purpose of payment of the debt
service obligation for the bonds sold to finance the projects.
15814.22. The Department of General Services, in consultation with
the California Energy Resources Conservation and Development
Commission and other state agencies and departments, shall develop a
multiyear plan, to be updated biennially, with the goal of exploiting
all practicable and cost-effective energy efficiency measures in
state facilities. The department shall coordinate plan implementation
efforts, and make recommendations to the Governor and the
Legislature to achieve energy efficiency goals for state facilities.
15814.23. The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the State Energy
Resources Conservation and Development Commission pursuant to Section
25402 of the Public Resources Code. In the design and construction
of new state buildings, the department or other responsible state
agency shall also consider additional state-of-the-art energy
efficiency design measures and equipment, beyond those required by
the standards, that are cost-effective and feasible.
15814.24. (a) The Superintendent of Public Instruction shall
apportion state aid equal to the amount necessary for each school
district to meet its energy service contract obligation determined
pursuant to this chapter. It is the intent of the Legislature that
these funds be appropriated annually as a part of the state's general
apportionment funds for kindergarten through grade 12 schools.
(b) If a school district enters into an energy service contract
with the Public Works Board pursuant to this chapter, the district
shall, as a part of that energy service contract, authorize the
Superintendent of Public Instruction and the Controller to withhold
from its annual apportionment the amount of funds necessary to
satisfy its annual energy service contract obligation to the Public
Works Board. The agreement shall include authorization to withhold
the additional apportionment amount and the amount determined to be
the district's proportional share of the energy service contract
obligation as determined pursuant to subdivision (a). The
superintendent shall certify the amounts, by county, to the
Controller. The Controller shall withhold the amount so reported for
each county and shall, acting on behalf of each county, transfer the
appropriate amount from Section A of the State School Fund to the
Public Works Board for the purpose of payment of the debt service
obligation for the bonds sold to finance the projects. Any payment
made from an apportionment by the Controller pursuant to this section
shall be deemed to be an allocation to a school district for
purposes of subdivision (b) of Section 8 of Article XVI of the
California Constitution for purposes of Chapter 2 (commencing with
Section 41200) of Part 24 of the Education Code.
15814.25. Energy conservation measures eligible for financing by
kindergarten through grade 12 schools shall be limited to those
measures recommended pursuant to an energy audit provided by the
State Energy Resources Conservation and Development Commission under
its existing authority.
15814.25. Notwithstanding subdivision (f) of Section 15814.11, for
the purposes of this chapter "state agency" also shall include any
local government as defined in subdivision (b) of Section 5921.
15814.26. A local government that enters into an energy service
contract with the State Public Works Board pursuant to this chapter
shall do both of the following:
(a) Include in the contract specific provisions to meet its energy
service contract obligation determined pursuant to this chapter.
(b) Authorize the Controller, as part of the energy service
contract, to withhold sufficient payments, from specific moneys that
it otherwise would receive from the state, in order to meet its
annual energy service contract obligation determined pursuant to this
chapter, if the provisions of subdivision (a) are for any reason
insufficient to meet that annual energy service contract obligation.
15814.27. If a local government enters into an energy service
contract with the State Public Works Board pursuant to this chapter,
its governing body shall annually budget and appropriate the amounts
payable under that energy service contract during that fiscal year.
If the governing body fails or neglects to make the appropriations,
the officer of the local government with responsibility for
disbursing its funds shall transfer, from any money available in any
fund of the treasury of that local government, the sums necessary to
meet its energy service contract obligation determined pursuant to
this chapter, and this transfer shall have the same force and effect
as it would have had if the required appropriation had been made by
the governing body of the local government.
15814.28. The department shall, no later than March 1, 2009, and
biennially thereafter, make the recommendations required in Section
15814.22, and report on all of the following for projects under its
jurisdiction:
(a) The progress made toward implementing energy efficiency
measures in state facilities.
(b) The most common energy efficiency measures being implemented.
(c) The obstacles preventing further implementation of energy
efficiency measures.
(d) How current efforts and ideas can be incorporated into the
Governor's five-year infrastructure plan described in Section 13102.
