School Energy Efficiency Stimulus Program

Section § 1610

This section mandates that by February 1, 2021, utility companies must submit a joint proposal to fund a School Energy Efficiency Stimulus Program. This program should be part of their existing energy efficiency efforts and be consistent across different utility areas. It will be designed and managed by the Energy Commission. The proposal must be approved by March 1, 2021. The program will include two main initiatives: one focused on improving school ventilation and energy efficiency, and the other on addressing noncompliant plumbing fixtures and appliances in schools.

By no later than February 1, 2021, the utilities shall file a joint advice letter pursuant to Section 5.1 of General Order 96-B, to fund a joint School Energy Efficiency Stimulus Program as part of each of their energy efficiency portfolios. The School Energy Efficiency Stimulus Program shall be a joint program among all the participating utilities that shall be consistent across the utility territories and shall be designed, administered, and implemented by the Energy Commission as the program administrator. The commission shall approve the advice letter no later than March 1, 2021. The School Energy Efficiency Stimulus Program shall consist of both of the following programs:

(a) The School Reopening Ventilation and Energy Efficiency Verification and Repair Program as specified in Article 3 (commencing with Section 1620).

(b) The School Noncompliant Plumbing Fixture and Appliance Program as specified in Article 4 (commencing with Section 1630).

School Energy Efficiency Stimulus Program utility companies joint advice letter ...

Section § 1611

This law requires utilities to collaborate with the Energy Commission to get the SRVEVR and SNPFA Programs up and running. They need to start accepting grant applications by April 1, 2021, and begin approving them by May 1, 2021, as long as there is money available.

Each utility shall work with the Energy Commission to ensure the SRVEVR Program and SNPFA Program are operative and begin to solicit applications for grants on or before April 1, 2021, and begin to approve applications no later than May 1, 2021, subject to the availability of funds.

utility collaboration Energy Commission SRVEVR Program ...

Section § 1612

This law mandates that at least 25% of the projects funded by the SRVEVR and SNPFA Programs must support schools in underserved communities. Schools in these areas should have the first opportunity to apply for and receive grant money before others.

Furthermore, the SRVEVR Program gives priority to schools located near busy traffic areas or pollution-heavy facilities to help address health and environmental concerns.

Not less than 25 percent of projects funded by the SRVEVR Program or SNPFA Program shall be in underserved communities. The SRVEVR Program and SNPFA Program shall prioritize underserved communities by ensuring that all schools that are in an underserved community are offered the opportunity to apply for and receive grants before those schools that are not in an underserved community. Additionally, the SRVEVR Program shall prioritize schools with a boundary that is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor or within 1,000 feet of a facility holding a permit pursuant to Title V of the Clean Air Act (42 U.S.C. Section 7661 et seq.). For the purposes of this section, “freeway or other busy traffic corridors” has the same meaning as defined in paragraph (9) of subdivision (d) of Section 17213 of the Education Code.

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Section § 1613

This section declares that both the SRVEVR and SNPFA Programs are recognized as third-party programs. This designation is for compliance with a specific commission decision made on August 18, 2016, which provided guidance on how to file initial business plans for energy efficiency portfolios.

The SRVEVR Program and the SNPFA Program shall be considered a third-party program for compliance with the commission Decision 16-08-019 (August 18, 2016) Decision Providing Guidance for Initial Energy Efficiency Rolling Portfolio Business Plan Filings.

SRVEVR Program SNPFA Program third-party program ...

Section § 1614

This law outlines the responsibilities of the Energy Commission and utilities in creating guidelines and regulations for two programs: the SRVEVR Program and the SNPFA Program. Importantly, these guidelines do not have to follow the usual extensive rule-making process. Guidelines must have been adopted by May 1, 2021, with application approvals starting immediately after. While workforce qualifications remain unchanged, other program requirements can be updated as needed to align with the latest health guidelines or to better meet program goals. Technical definitions can also be modified to ensure the School Energy Efficiency Stimulus Program meets its objectives and other standards.

(a) The Energy Commission, in collaboration with each utility, shall adopt guidelines and regulations for the SRVEVR Program and the SNPFA Program.

(b) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the adoption of guidelines or regulations pursuant to this section.

(c) The Energy Commission shall adopt regulations or guidelines no later than May 1, 2021, and shall begin approving applications promptly upon their adoption.

(d) Other than the workforce qualification requirements, the technical and reporting requirements of the SRVEVR Program as set forth in Sections 1623 through 1627 of Article 3 (commencing with Section 1620) may be amended by the Energy Commission pursuant to subdivisions (a) and (b) of this section, as necessary, to reflect the latest COVID-19 or other applicable guidance, or otherwise to achieve the intent of the SRVEVR Program and to ensure consistency with related requirements and codes.

(e) The technical definitions in Section 1620 or 1630 may be amended by the Energy Commission, as necessary, to achieve the intent of the School Energy Efficiency Stimulus Program and to ensure consistency with related requirements and codes.

Energy Commission utility collaboration SRVEVR Program ...

Section § 1615

This law requires utilities to fund a School Energy Efficiency Stimulus Program using allocated energy efficiency budgets for 2021, 2022, and 2023. Utilities need to contribute a set percentage of their budget difference between 2020's approvals and specified limits: 80% for 2021, 70% for 2022, and 60% for 2023. Unused funds can roll over to the next year within the program period.

It ensures no extra charges are imposed beyond approved amounts and allows the Energy Commission to use a small portion of funds for program administration. The money must be spent by December 1, 2026, or returned to the utility. Additionally, the law encourages diverse contractor awareness for these funding opportunities.

(a)

(1) The commission shall require each utility to fund the School Energy Efficiency Stimulus Program by allocating their energy efficiency budgets for program years 2021, 2022, and 2023, in both of the following amounts:

(A) An amount equal to the applicable percentage of the difference between the budget contained in each utility’s 2020 annual budget advice letter approved as of July 1, 2020, and the annual portfolio funding limitation for program year 2020 as set forth in the 2018–2025 business plan of each utility as approved and modified in ordering paragraph 45 of the commission’s Decision 18-05-041 (May 31, 2019) Decision Addressing Energy Efficiency Business Plans, as modified by Decision 20-02-029 (February 6, 2020) Order Modifying Decision (D.) 18-05-041 and Denying Rehearing of Decision, as Modified. The applicable percentage is 80 percent for program year 2021, 70 percent for program year 2022, and 60 percent for program year 2023.

(B) Any carryover amount from unspent and uncommitted energy efficiency funds for program year 2020, 2021, or 2022 to the School Energy Efficiency Stimulus Program for the following year’s budget.

(2) Funding allocations required by this subdivision shall only apply to program years 2021, 2022, and 2023.

(3) Any funds allocated towards the School Energy Efficiency Stimulus Program pursuant to this section that remain unspent by the end of each program year may be carried over and contribute to the next year’s budget for the School Energy Efficiency Stimulus Program until the end of the 2023 energy efficiency program year.

(b)

(1) This section does not authorize the levy of a charge or any increase in the amount collected pursuant to an existing charge beyond the amounts authorized by the commission in Decision 18-05-041, or as modified by Decision 20-02-029, nor does it add to, or detract from, any existing authority of the commission to levy or increase charges.

(2) This subdivision does not change the commission’s authority to determine revenue allocation and rate design, including its ability to prioritize customers participating in the California Alternative Rates for Energy or Family Electric Rate Assistance programs when considering appropriate revenue allocation for energy efficiency programs.

(c) The Energy Commission shall ensure that moneys from each utility for the School Energy Efficiency Stimulus Program are used for projects located in the service territory of that utility from which the moneys are received.

(d) The Energy Commission may use no more than 5 percent, not to exceed five million dollars ($5,000,000) per year, of the SRVEVR Program and the SNPFA Program funds for administrating the programs, including providing technical support to program participants. The commission shall ensure that funds allocated to the Energy Commission pursuant to this section are transferred to an account specified by the Energy Commission within 60 days after the completion of the prior energy efficiency program year.

(e)

(1) The School Energy Efficiency Stimulus Program Fund was administratively established for the Energy Commission to receive funds allocated pursuant to this chapter.

(2) Notwithstanding Section 13340 of the Government Code, the moneys in the School Energy Efficiency Stimulus Program Fund are hereby continuously appropriated to the Energy Commission without regard to fiscal years for the purposes of the School Energy Efficiency Stimulus Program established pursuant to this chapter, including, but not limited to, paying the costs of program administration.

(f) All funds allocated in subdivision (a) shall be spent or returned to each utility by December 1, 2026.

(g) The Energy Commission may set application and encumbrance deadlines to ensure that the reversion of funds as required by subdivision (f) occurs by December 1, 2026.

(h) The Energy Commission shall take steps, consistent with Section 25230 of the Public Resources Code, to ensure that a diverse group of contractors are aware of funding opportunities available through the School Energy Efficiency Stimulus Program.

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Section § 1616

This law outlines how funds for the School Energy Efficiency Stimulus Program are divided each year. Seventy-five percent of the funds go to the SRVEVR Program, which likely focuses on energy-related upgrades or efficiency measures for schools. The remaining twenty-five percent of the funds go to the SNPFA Program, possibly targeting another aspect or initiative within school energy efficiency.

Moneys for the School Energy Efficiency Stimulus Program for each program year shall be allocated as follows:

(a) Seventy-five percent to the SRVEVR Program.

(b) Twenty-five percent to the SNPFA Program.

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Section § 1617

The School Energy Efficiency Stimulus Program is designed to promote energy savings and related public benefits, especially for underrepresented communities. The standard cost-effectiveness evaluation does not apply to these projects because it doesn't consider all public benefits. Spending on this program is deemed cost-effective and won't affect the overall evaluation of energy efficiency programs by electricity and gas companies.

The School Energy Efficiency Stimulus Program advances the public interest in maximizing cost-effective energy savings and related public benefits, including ensuring that ratepayer investments unlock deeper energy savings and benefit underserved communities. Because the commission’s current cost-effectiveness methodology does not fully take into account indirect and nonmonetary public benefits, that methodology shall not be applied to these projects. Expenditures on the School Energy Efficiency Stimulus Program shall be found to be cost effective and shall not be considered by the commission when calculating the overall cost-effectiveness of energy efficiency portfolios of electrical corporations or gas corporations.

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Section § 1618

This California law section states that any greenhouse gas emission reductions and energy savings achieved through projects funded by the School Energy Efficiency Stimulus Program should be credited to the utility that provided the funding. This is important for meeting certain environmental and energy-saving goals. The benchmark for these reductions is based on what the energy demand and emissions would have been if schools had been reopened with standard ventilation and filtration, without improvements funded by the program.

Reducing emissions of greenhouse gases and energy savings attributed to a project funded by the School Energy Efficiency Stimulus Program shall be attributed to the utility that provided those funds when determining compliance with applicable greenhouse gas or energy efficiency saving mandates. The baseline for determining reductions in emissions of greenhouse gases and energy savings from the SRVEVR Program shall be the energy demand and emissions of greenhouse gases that would have occurred if ventilation and filtration recommendations for reopening schools were met without the assessment, adjustment, maintenance, repairs, and efficiency upgrades funded pursuant to the program.

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