Section § 17650

Explanation

The state of California wants to help school districts find affordable ways to save energy in school buildings. Even though many schools want to use energy-saving programs, the cost to update facilities can be very high. The goal is to encourage schools to make buildings more energy-efficient to save on energy expenses.

The Legislature finds and declares that it is in the interest of the state and of the people thereof for the state to aid school districts in finding cost-effective methods of conserving energy in school buildings maintained by the districts. The Legislature also finds that while many districts may desire to participate in energy conservation programs designed to reduce the steadily rising costs of meeting the energy needs of school buildings, that the costs involved in improving existing school facilities to become more energy efficient are often prohibitive.
It is the intent of the Legislature in enacting this chapter to encourage school districts to retrofit school buildings so as to conserve energy and reduce the costs of supplying energy.

Section § 17651

Explanation

This law allows California school districts to borrow money from banks or other financial institutions to help pay for making their buildings more energy efficient. However, they can only borrow an amount they can pay back using the money saved from reduced energy costs. Additionally, savings and loan associations are allowed to loan up to 5% of their total assets for these projects, which is above what they're normally allowed to invest.

(a)CA Education Code § 17651(a) School districts may borrow funds from federal or state regulated financial institutions for the purposes of design and construction costs associated with retrofitting school buildings to become more energy efficient. School districts shall only be authorized to borrow an amount which does not exceed that which can be repaid from energy cost avoidance savings accumulated from the improvement of school facilities.
(b)CA Education Code § 17651(b) Any savings and loan association may make loans or advances of credit pursuant to subdivision (a) in an amount not in excess of 5 percent of its total assets. This investment may be in addition to any other investment savings and loan associations are permitted to undertake under Section 6705.7 of the Financial Code.

Section § 17652

Explanation

School districts in California are required to set up energy audits for school buildings. These audits can be conducted by utility companies or independent energy audit firms. The first audit, a preaudit, figures out what needs to be done to improve energy efficiency and estimates the possible energy savings. After the work is done, a secondaudit checks if the upgrades meet the initial recommendations.

To the extent that these services are available, school districts shall arrange for the preaudit and postaudit of school buildings by investor-owned or municipal utility companies or by independent energy audit companies or organizations which are recognized by federal or state regulated financial institutions. The preaudit shall identify the type and amount of work necessary to retrofit the buildings and shall include an estimate of projected energy savings. The postaudit shall be conducted upon completion of the retrofitting of the school buildings to ensure that the project satisfies the recommendations of the preaudit.

Section § 17653

Explanation

This law says that school districts in California need to hire qualified companies to upgrade school buildings. They can choose businesses from lists provided by utility companies or financial institutions.

School districts taking action under this chapter shall contract with qualified businesses capable of retrofitting school buildings. To the extent that lists of qualified businesses are made available to school districts by investor-owned or municipal utility companies or federal or state regulated financial institutions, school districts may utilize the services of these businesses.