Chapter 5.7Energy Efficient State Property Revolving Fund and Energy Efficiency Retrofit State Revolving Fund

Section § 25470

Explanation

This law defines several terms used throughout the chapter concerning energy efficiency in state-owned buildings. It specifies that an 'Act' refers to the American Recovery and Reinvestment Act of 2009. An 'allocation' is a loan from the Department of General Services for energy projects in buildings. 'Building' includes any structure with heating or cooling systems and any additions. The 'Department' is the Department of General Services.

An 'energy audit' is an assessment of a building's energy use and recommendations for conservation. 'Energy conservation maintenance and operating procedures' are adjustments to reduce energy usage without significant costs. 'Energy conservation measures' involve installing or modifying systems to lower energy consumption or use cheaper energy. An 'energy conservation project' involves implementing these measures with technical help.

The 'fund' refers to specific state revolving funds for energy efficiency. 'Project' means any approved initiative for improving energy conservation in state facilities. 'State agency' and 'state-owned building' describe government units and buildings primarily used by California state offices, respectively.

As used in this chapter:
(a)CA Public Resources Code § 25470(a) “Act” means the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
(b)CA Public Resources Code § 25470(b) “Allocation” means a loan of funds by the Department of General Services pursuant to the procedures specified in this chapter.
(c)CA Public Resources Code § 25470(c) “Building” means any existing structure that includes a heating or cooling system, or both. Additions to an existing building shall be considered part of that building rather than a separate building.
(d)CA Public Resources Code § 25470(d) “Department” means the Department of General Services.
(e)CA Public Resources Code § 25470(e) “Energy audit” means a determination of the energy consumption characteristics of a building that does all of the following:
(1)CA Public Resources Code § 25470(e)(1) Identifies the type, size, and energy use level of the building and the major energy using systems of the building.
(2)CA Public Resources Code § 25470(e)(2) Determines appropriate energy conservation maintenance and operating procedures.
(3)CA Public Resources Code § 25470(e)(3) Indicates the need, if any, for the acquisition and installation of energy conservation measures.
(f)CA Public Resources Code § 25470(f) “Energy conservation maintenance and operating procedure” means a modification or modifications in the maintenance and operations of a building, and any installations therein, based on the use time schedule of the building that are designed to reduce energy consumption in the building and that require no significant expenditure of funds.
(g)CA Public Resources Code § 25470(g) “Energy conservation measure” means an installation or modification of an installation in a building that is primarily intended to reduce energy consumption or allow the use of a more cost-effective energy source.
(h)CA Public Resources Code § 25470(h) “Energy conservation project” means an undertaking to acquire and to install one or more energy conservation measures in a building, and technical assistance in connection with that undertaking.
(i)CA Public Resources Code § 25470(i) “Fund” means the Energy Efficient State Property Revolving Fund or the Energy Efficiency Retrofit State Revolving Fund.
(j)CA Public Resources Code § 25470(j) “Project” means a purpose for which an allocation may be requested and made under this chapter. Those purposes shall include energy audits, energy conservation and operating procedures, and energy conservation measures in existing buildings, and energy conservation projects.
(k)CA Public Resources Code § 25470(k) “State agency” means a unit of state government, including any department, agency, board, or commission under the State of California.
(l)CA Public Resources Code § 25470(l) “State-owned building” means a building that is primarily occupied by offices or agencies of a unit of state government and includes those properties owned by the State of California.
energy efficiency American Recovery and Reinvestment Act of 2009 Department of General Services energy audit energy conservation measures energy conservation project Energy Efficient State Property Revolving Fund energy consumption state-owned building technical assistance loan allocation heating or cooling systems modifications maintenance procedures state agency
(Amended by Stats. 2014, Ch. 36, Sec. 14. (SB 862) Effective June 20, 2014.)

Section § 25471

Explanation

This law establishes a fund called the Energy Efficient State Property Revolving Fund, which provides loans to make state-owned buildings more energy-efficient. The fund is managed by the designated department, and it can use other funds to support its loans. In the fiscal year 2009-10, $25 million was allocated to the fund, with an option for up to $50 million more in the fiscal years 2011-12 and 2012-13. The commission has flexibility in how and when to transfer these additional funds, but must notify relevant authorities about these actions. All money, including interest, must be accounted for separately. Finally, repayments on certain federal loans must be transferred into this fund.

(a)CA Public Resources Code § 25471(a) There is hereby created in the State Treasury the Energy Efficient State Property Revolving Fund for the purpose of implementing this chapter. Notwithstanding Section 13340 of the Government Code, the money in this fund is continuously appropriated to the department, without regard to fiscal years, for loans for projects on state-owned buildings and facilities to achieve greater, long-term energy efficiency, energy conservation, and energy cost and use avoidance.
(b)CA Public Resources Code § 25471(b) The fund shall be administered by the department. The department may use other funding sources to leverage project loans.
(c)CA Public Resources Code § 25471(c) For the 2009–10 fiscal year, the sum of twenty-five million dollars ($25,000,000) shall be transferred into the Energy Efficient State Property Revolving Fund from money received by the commission pursuant to the act to be used for purposes of the federal State Energy Program.
(d)Copy CA Public Resources Code § 25471(d)
(1)Copy CA Public Resources Code § 25471(d)(1) For the 2011–12 and 2012–13 fiscal years, the commission may transfer up to fifty million dollars ($50,000,000), in total, as the commission determines to be appropriate, into the Energy Efficient State Property Revolving Fund from money received by the commission pursuant to the act to be used for the purposes of the federal State Energy Program.
(2)CA Public Resources Code § 25471(d)(2) The commission shall provide written notice to the Controller on the amount and timing of the transfer of moneys into the fund.
(3)CA Public Resources Code § 25471(d)(3) Subject to the limitations of paragraph (1), the commission may make multiple transfers to allow for reallocating available funds from project cancellations and project savings.
(4)CA Public Resources Code § 25471(d)(4) Notwithstanding Section 9795 of the Government Code, the commission shall notify, in writing, the Joint Legislative Budget Committee when a transfer is made pursuant to this subdivision.
(e)CA Public Resources Code § 25471(e) The Controller shall disburse moneys in the fund for the purposes of this chapter, as authorized by the department.
(f)CA Public Resources Code § 25471(f) Moneys in the fund, including all interest earnings, shall be clearly delineated and distinctly accounted for in accordance with the requirements of the act.
(g)CA Public Resources Code § 25471(g) Pursuant to subdivision (d) of Section 25422 and subdivision (h) of Section 25464, the commission shall transfer to the Energy Efficient State Property Revolving Fund repayments of, and all accrued interest on, loans funded by the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
Energy Efficient State Property Revolving Fund state-owned buildings energy efficiency energy conservation energy cost avoidance project loans 2009–10 fiscal year federal State Energy Program American Recovery and Reinvestment Act Commission transfers Joint Legislative Budget Committee notification loan repayments fund disbursement interest earnings fund management
(Amended by Stats. 2015, Ch. 24, Sec. 36. (SB 83) Effective June 24, 2015.)

Section § 25471.5

Explanation

This law creates a special fund called the Energy Efficiency Retrofit State Revolving Fund in California's State Treasury. The money in this fund can be used at any time, without being tied to specific budget years, for loans that help pay for energy efficiency projects in state-owned buildings. These projects aim to improve energy efficiency, use renewable energy, lower greenhouse gas emissions, and decrease reliance on electricity from the power grid.

There is hereby established in the State Treasury the Energy Efficiency Retrofit State Revolving Fund for the purposes of implementing this chapter. Notwithstanding Section 13340 of the Government Code, moneys in the Energy Efficiency Retrofit State Revolving Fund are continuously appropriated to the department without regard to fiscal years for loans for projects in or on state-owned buildings and facilities to implement energy efficiency retrofit projects and to utilize renewable energy technology to achieve energy efficiency, reduce emissions of greenhouse gases, and reduce grid-based electricity purchases.
Energy Efficiency Retrofit State Revolving Fund state-owned buildings energy efficiency projects renewable energy technology greenhouse gas emissions reduction grid-based electricity reduction continuously appropriated funds energy efficiency loans retrofit projects California State Treasury fiscal years renewable energy utilization state facilities upgrades energy efficiency improvements
(Added by Stats. 2014, Ch. 36, Sec. 15. (SB 862) Effective June 20, 2014.)

Section § 25472

Explanation

This law requires the department to create a process for identifying and funding projects that enhance energy efficiency and savings. These projects should be funded from a designated fund and comply with specific performance and reporting guidelines set by a commission.

The focus is on funding projects that are cost-effective and ensure long-term energy savings. Funding is provided as loans to state agencies using the affected building or facility, with repayments scheduled not to exceed the lifespan of the project's equipment or lease term.

Maximum loan amounts depend on expected energy savings, ensuring that agencies can repay within the loan terms. Interest rates on loans will be regularly set by surveying financial markets, always maintaining a minimum rate of 1% per year. Repayment schedules will align with projected energy savings, and a direct billing method may be used for repayments.

(a)CA Public Resources Code § 25472(a) The department, in consultation with the commission, shall establish a process by which projects are identified and funding is allocated.
(b)CA Public Resources Code § 25472(b) The department shall use money in the fund for projects that will improve long-term energy efficiency and increase energy use savings.
(c)CA Public Resources Code § 25472(c) The department shall comply with the requirements of the act and implementing guidelines of the commission, including, but not limited to, performance metrics, data collection, and reporting. All projects shall be consistent with these requirements and guidelines.
(d)CA Public Resources Code § 25472(d) Funding prioritization shall be granted to those projects that are cost effective and will yield immediate and sustainable energy efficiency, energy conservation, energy use cost savings, and cost avoidance.
(e)CA Public Resources Code § 25472(e) The department shall fund allowable projects through a loan to the appropriate state agency or agencies occupying the building or facility for which the project will be performed.
(f)CA Public Resources Code § 25472(f) The department shall determine a reasonable loan repayment schedule that shall not exceed the life of the energy conservation measure equipment, as determined by the department, or the lease term of the building in which the energy conservation measure is installed.
(g)CA Public Resources Code § 25472(g) Maximum loan amounts shall be based on estimated energy cost savings that will allow state agencies to repay loan principal and interest within the maximum repayment term specified in this section.
(h)CA Public Resources Code § 25472(h) The department shall periodically set interest rates on the loans based on surveys of existing financial markets and at rates of not less than 1 percent per annum.
(i)CA Public Resources Code § 25472(i) Annual loan repayment amounts shall be structured so as to reflect the projected annualized energy cost avoidance estimated from the completed project. The department may utilize a direct billing methodology to recover loan repayments for completed projects.
energy efficiency projects funding allocation performance metrics data collection loan repayment schedule energy cost savings cost avoidance sustainable energy efficiency loan interest rate state agency loans financial markets survey project funding prioritization energy conservation measures project compliance guidelines loan principal repayment
(Amended by Stats. 2014, Ch. 36, Sec. 16. (SB 862) Effective June 20, 2014.)

Section § 25473

Explanation

This law requires a department, working alongside a commission, to submit a report to certain legislative committees. The report, due each January, starting in 2010, should list projects planned for the fiscal year, include their costs, analyze the methods used, and estimate energy savings. Additionally, an update to the initial report must be submitted by July 2010.

(a)CA Public Resources Code § 25473(a) On or before January 1, 2010, and annually thereafter, the department, in collaboration with the commission, shall submit to the Legislature’s fiscal and appropriate policy committees a report that includes an initial list of projects identified and planned for the 2009–10 fiscal year, and for each fiscal year thereafter. The report also shall include the anticipated cost of each project, an analysis of the results of the methodology, and an estimate of energy savings to be achieved.
(b)CA Public Resources Code § 25473(b) On or before July 1, 2010, the department, in collaboration with the commission, shall submit to the Legislature an update to the January 1, 2010, report.
energy savings report fiscal year projects project cost estimation legislative report submission methodology analysis energy efficiency planning annual project update legislative committees energy savings estimate collaboration with commission project identification January report deadline July update requirement
(Added by Stats. 2009, 4th Ex. Sess., Ch. 11, Sec. 23. Effective July 28, 2009.)

Section § 25474

Explanation

This law section outlines how funds from the Energy Efficient State Property Revolving Fund work. Repayments and earnings from the loans, along with any interest, should go back into that same fund to be reused for similar projects. The department that's managing these projects can take up to 5% of the total loan amount from interest earnings to cover their administrative costs. These costs could include things like improving energy efficiency, managing the projects, and handling all the necessary paperwork.

(a)CA Public Resources Code § 25474(a) Any repayment of loans made pursuant to this chapter from the Energy Efficient State Property Revolving Fund, including interest payments, and all interest earnings on or accruing to, any money resulting from the implementation of this chapter in the Energy Efficient State Property Revolving Fund, shall be deposited in that fund and shall be available for the purposes of this chapter.
(b)CA Public Resources Code § 25474(b) The department may recover costs of administering the projects and related costs through interest earnings up to 5 percent of the project loan amounts. Project costs can include energy efficiency improvements and costs associated with managing the project and administering the loan program, including all reporting requirements.
Energy Efficient State Property Revolving Fund loan repayment interest payments fund reinvestment administrative cost recovery project loan amounts energy efficiency improvements project management costs loan program administration reporting requirements
(Amended by Stats. 2014, Ch. 36, Sec. 17. (SB 862) Effective June 20, 2014.)

Section § 25474.5

Explanation

This section outlines how money associated with the Energy Efficiency Retrofit State Revolving Fund is handled. Any repayments or interest from loans, as well as interest earned through related activities, must go back into the fund to support its ongoing purposes. Additionally, the department managing these projects is allowed to use up to 5% of the interest earnings from project loans to cover their administrative and project management costs. These costs include those necessary for implementing energy efficiency improvements and fulfilling reporting requirements.

(a)CA Public Resources Code § 25474.5(a) Notwithstanding Section 39718 of the Health and Safety Code, any repayment of loans made pursuant to this chapter from the Energy Efficiency Retrofit State Revolving Fund, including interest payments, and all interest earnings on or accruing to, any money resulting from the implementation of this chapter in the Energy Efficiency Retrofit State Revolving Fund, shall be deposited in that fund and shall be available for the purposes of this chapter.
(b)CA Public Resources Code § 25474.5(b) The department may recover costs of administering the projects and related costs through interest earnings up to 5 percent of the project loan amounts. Project costs can include energy efficiency improvements and costs associated with managing the project and administering the loan program, including all reporting requirements.
Energy Efficiency Retrofit State Revolving Fund loan repayment interest earnings project funding administrative costs energy efficiency improvements loan program management funding for energy projects project loan amounts reporting requirements revolving fund interest payments cost recovery fund management state energy projects
(Added by Stats. 2014, Ch. 36, Sec. 18. (SB 862) Effective June 20, 2014.)