AB2679 A time line by 2030 for implementing energy and water, efficiency and conservation, combined with onsite generation of energy for all public buildings where as a state agency was responsible for issuing a building permit.

The recent release of the California Energy

Commissions 2009 Integrated Energy Policy Report

provides one of many

elements for the creation

of AB2679.

During the first decade

of the new millennium

many reports, research

documents, and findings

regarding energy in the

State of California were

created and numerous laws enacted to ensure the

research and findings concluded are implemented in

managing California’s energy needs.

Assembly Bill 2021 (Levine, Chapter 734, Statutes

of 2006): This bill requires the Energy Commission,

in consultation with the CPUC and publicly owned

utilities, to develop a statewide estimate of all

potentially achievable cost-effective electricity and

natural gas efficiency savings and establish

statewide annual targets for energy efficiency

savings and demand reduction over 10 years.

Assembly Bill 758 (Skinner, Chapter 470, Statutes

of 2009): This bill requires the Energy Commission

to establish a regulatory proceeding by March 1,

2010, to develop a comprehensive program to

achieve greater energy savings in existing

residential and nonresidential buildings.

Energy Efficiency & Demand Response

Energy efficiency and

conservation programs reduce

energy costs, which makes

businesses more competitive and

allows consumers to save money.

In addition, energy efficiency

reduces the cost of meeting peak

demand during periods of high

temperatures and high prices. By reducing the

demand for electricity, energy efficiency programs

also play a major role in increasing reliability of the

electricity system by reducing stress on existing

power plants and the transmission system and

reducing the demand for new power plants and

transmission infrastructure. Energy efficiency and

demand response measures are the first resources in

the loading order because they can contribute to

meeting climate change goals with little or no

impact on the environment and with measurable

benefits (for example, cost savings) to the

consumer.

Strategies to achieve all cost-

effective energy efficiency and

greenhouse gas emissions reduction

goals include promoting the

development of zero net energy

buildings, increased building and appliance

standards, and better enforcement of those

standards. A zero net energy building merges highly

energy-efficient facility strategies related to the

building structure, the integration of state of-the-art

appliances and lighting systems, and high

performance windows to reduce a building’s load

and peak requirements. Technical strategies for

efficiency also can include on-site solar water

heating and renewable energy, such as solar

photovoltaic, to meet remaining energy needs. The

result is a grid-connected building that draws

energy from, and feeds surplus energy to, the grid.

Energy Efficiency Financing Public Sector Projects

Many organizations see the lack of funds as a major

barrier to energy efficiency projects. Our research

indicates that there are many project funding

sources. In many cases, the funding can be

structured so that the projects can be repaid from

energy savings, negating the need for upfront

capital and eliminating lack of capital as a project

barrier. Cost effectiveness will motivate organizations to

implement projects with short paybacks, positive

cash flows and projects that would reduce operating

cost. High energy cost result in cost effective

projects with short paybacks and positive cash

flows.

Energy efficiency projects financed by the Energy

Commission, however, have received a special

exemption from the State Attorney General’s

Office. Under a 1984 Attorney General’s ruling,

energy efficiency projects that “pay for themselves”

from energy cost savings do not constitute debt.

Reported to the California Public Utilities

Commission in the Investor Owned Utility

performance report for the Energy

Action Plan program

cycle of 2006-2008

“Investments in

energy efficiency

continue to be one

of the least-cost options to meet the state’s growing

energy needs and reduce greenhouse gas emissions,

every dollar invested in energy efficiency produced

$1.17 in net benefits for the state.”

Energy Efficiency Groupware Application

Annual Reports, Table 4 (2006-2008 costs). http://eega2006.cpuc.ca.gov

California’s efficiency programs have continued to

provide more than $2 in benefits for every $1invested

Life Cycle Cost (LCC) analysis is a comparative

method whereby all costs and savings related to a

decision are evaluated over a common study period

and adjusted for the time value of money. Since

LCC incorporates the time value of money, on costs

and savings over a given study period, decision

makers should consider using

the LCC methodology when

evaluating the cost

effectiveness of energy

efficient, conservation,

demand side management,

and site generations project

alternatives. This is a direct

cost analysis the indirect is

consumer spending and jobs.

Energy Efficiency & Jobs

CPUC analyses determined the state can capture

approximately 7,000 MW and nearly 29,000 GWh

of additional efficiency savings through 2020

Capturing these savings is important as the state

seeks to jumpstart the economy, and improve air

quality. Efficiency is a proven tool to create jobs

and to enable consumers to keep more money in

their pockets by paying less on their utility bills. A

U.C. Berkeley analysis of the state’s overall energy

efficiency efforts 1972 to 2006 provided a

cumulative total of about $56 billion in savings and

created about 1.5 million full-time equivalent jobs

with a payroll of $45 billion

CPUC “California Long Term Energy Efficiency

Strategic Plan,” is expected to provide even more savings to consumers while creating more than

15,000 skilled green jobs

Cost effectiveness will motivate

organizations to implement

projects with short paybacks,

positive cash flow and projects that

will reduce cost