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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             also play a major role in increasing reliability of the
Commissions 2009 Integrated Energy Policy Report        electricity system by reducing stress on existing
                          provides one of many          power plants and the transmission system and
                          elements for the creation     reducing the demand for new power plants and
                          of AB2679.                    transmission infrastructure. Energy efficiency and
                          During the first decade       demand response measures are the first resources in
                          of the new millennium         the loading order because they can contribute to
                          many reports, research        meeting climate change goals with little or no
                          documents, and findings       impact on the environment and with measurable
                          regarding energy in the       benefits (for example, cost savings) to the
                          State of California were      consumer.
created and numerous laws enacted to ensure the
research and findings concluded are implemented in      Strategies to achieve all cost-
managing California’s energy needs.                     effective energy efficiency and
                                                        greenhouse gas emissions reduction
Assembly Bill 2021 (Levine, Chapter 734, Statutes       goals include promoting the
of 2006): This bill requires the Energy Commission,     development of zero net energy
in consultation with the CPUC and publicly owned        buildings, increased building and appliance
utilities, to develop a statewide estimate of all       standards, and better enforcement of those
potentially achievable cost-effective electricity and   standards. A zero net energy building merges highly
natural gas efficiency savings and establish            energy-efficient facility strategies related to the
statewide annual targets for energy efficiency          building structure, the integration of state of-the-art
savings and demand reduction over 10 years.             appliances and lighting systems, and high
                                                        performance windows to reduce a building’s load
Assembly Bill 758 (Skinner, Chapter 470, Statutes       and peak requirements. Technical strategies for
of 2009): This bill requires the Energy Commission      efficiency also can include on-site solar water
to establish a regulatory proceeding by March 1,        heating and renewable energy, such as solar
2010, to develop a comprehensive program to             photovoltaic, to meet remaining energy needs. The
achieve greater energy savings in existing              result is a grid-connected building that draws
residential and nonresidential buildings.               energy from, and feeds surplus energy to, the grid.

                           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
the least-cost options to meet the state’s growing
        Cost effectiveness will motivate                 energy needs and reduce greenhouse gas emissions,
            organizations to implement                   every dollar invested in energy efficiency produced
                                                         $1.17 in net benefits for the state.”
           projects with short paybacks,
    positive cash flow and projects that                 Energy Efficiency Groupware Application
                                                         Annual Reports, Table 4 (2006-2008 costs).
                         will reduce cost                http://eega2006.cpuc.ca.gov

                                                         California’s efficiency programs have continued to
                Energy Efficiency Financing                  provide more than $2 in benefits for every
                     Public Sector Projects                                   $1invested
Many organizations see the lack of funds as a major
barrier to energy efficiency projects. Our research      Life Cycle Cost (LCC) analysis is a comparative
indicates that there are many project funding            method whereby all costs and savings related to a
sources. In many cases, the funding can be               decision are evaluated over a common study period
structured so that the projects can be repaid from       and adjusted for the time value of money. Since
energy savings, negating the need for upfront            LCC incorporates the time value of money, on costs
capital and eliminating lack of capital as a project     and savings over a given study period, decision
barrier.                                                                       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.
Cost effectiveness will motivate organizations to
implement projects with short paybacks, positive         Energy Efficiency & Jobs
cash flows and projects that would reduce operating      CPUC analyses determined the state can capture
cost. High energy cost result in cost effective          approximately 7,000 MW and nearly 29,000 GWh
projects with short paybacks and positive cash           of additional efficiency savings through 2020
flows.                                                   Capturing these savings is important as the state
Energy efficiency projects financed by the Energy        seeks to jumpstart the economy, and improve air
Commission, however, have received a special             quality. Efficiency is a proven tool to create jobs
exemption from the State Attorney General’s              and to enable consumers to keep more money in
Office. Under a 1984 Attorney General’s ruling,          their pockets by paying less on their utility bills. A
energy efficiency projects that “pay for themselves”
from energy cost savings do not constitute debt.         U.C. Berkeley analysis of the state’s overall energy
Reported to the California Public Utilities              efficiency efforts 1972 to 2006 provided a
                          Commission         in    the   cumulative total of about $56 billion in savings and
                               Investor         Owned    created about 1.5 million full-time equivalent jobs
                               Utility performance       with a payroll of $45 billion
                               report for the Energy
                               Action Plan program         CPUC “California Long Term Energy Efficiency
                               cycle of 2006-2008         Strategic Plan,” is expected to provide even more
                               “Investments         in     savings to consumers while creating more than
                               energy       efficiency                 15,000 skilled green jobs
                               continue to be one of

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Ab2679 Info Sheet

  • 1. 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 also play a major role in increasing reliability of the Commissions 2009 Integrated Energy Policy Report electricity system by reducing stress on existing provides one of many power plants and the transmission system and elements for the creation reducing the demand for new power plants and of AB2679. transmission infrastructure. Energy efficiency and During the first decade demand response measures are the first resources in of the new millennium the loading order because they can contribute to many reports, research meeting climate change goals with little or no documents, and findings impact on the environment and with measurable regarding energy in the benefits (for example, cost savings) to the State of California were consumer. created and numerous laws enacted to ensure the research and findings concluded are implemented in Strategies to achieve all cost- managing California’s energy needs. effective energy efficiency and greenhouse gas emissions reduction Assembly Bill 2021 (Levine, Chapter 734, Statutes goals include promoting the of 2006): This bill requires the Energy Commission, development of zero net energy in consultation with the CPUC and publicly owned buildings, increased building and appliance utilities, to develop a statewide estimate of all standards, and better enforcement of those potentially achievable cost-effective electricity and standards. A zero net energy building merges highly natural gas efficiency savings and establish energy-efficient facility strategies related to the statewide annual targets for energy efficiency building structure, the integration of state of-the-art savings and demand reduction over 10 years. appliances and lighting systems, and high performance windows to reduce a building’s load Assembly Bill 758 (Skinner, Chapter 470, Statutes and peak requirements. Technical strategies for of 2009): This bill requires the Energy Commission efficiency also can include on-site solar water to establish a regulatory proceeding by March 1, heating and renewable energy, such as solar 2010, to develop a comprehensive program to photovoltaic, to meet remaining energy needs. The achieve greater energy savings in existing result is a grid-connected building that draws residential and nonresidential buildings. energy from, and feeds surplus energy to, the grid. 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
  • 2. the least-cost options to meet the state’s growing Cost effectiveness will motivate energy needs and reduce greenhouse gas emissions, organizations to implement every dollar invested in energy efficiency produced $1.17 in net benefits for the state.” projects with short paybacks, positive cash flow and projects that Energy Efficiency Groupware Application Annual Reports, Table 4 (2006-2008 costs). will reduce cost http://eega2006.cpuc.ca.gov California’s efficiency programs have continued to Energy Efficiency Financing provide more than $2 in benefits for every Public Sector Projects $1invested Many organizations see the lack of funds as a major barrier to energy efficiency projects. Our research Life Cycle Cost (LCC) analysis is a comparative indicates that there are many project funding method whereby all costs and savings related to a sources. In many cases, the funding can be decision are evaluated over a common study period structured so that the projects can be repaid from and adjusted for the time value of money. Since energy savings, negating the need for upfront LCC incorporates the time value of money, on costs capital and eliminating lack of capital as a project and savings over a given study period, decision barrier. 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. Cost effectiveness will motivate organizations to implement projects with short paybacks, positive Energy Efficiency & Jobs cash flows and projects that would reduce operating CPUC analyses determined the state can capture cost. High energy cost result in cost effective approximately 7,000 MW and nearly 29,000 GWh projects with short paybacks and positive cash of additional efficiency savings through 2020 flows. Capturing these savings is important as the state Energy efficiency projects financed by the Energy seeks to jumpstart the economy, and improve air Commission, however, have received a special quality. Efficiency is a proven tool to create jobs exemption from the State Attorney General’s and to enable consumers to keep more money in Office. Under a 1984 Attorney General’s ruling, their pockets by paying less on their utility bills. A energy efficiency projects that “pay for themselves” from energy cost savings do not constitute debt. U.C. Berkeley analysis of the state’s overall energy Reported to the California Public Utilities efficiency efforts 1972 to 2006 provided a Commission in the cumulative total of about $56 billion in savings and Investor Owned created about 1.5 million full-time equivalent jobs Utility performance with a payroll of $45 billion report for the Energy Action Plan program CPUC “California Long Term Energy Efficiency cycle of 2006-2008 Strategic Plan,” is expected to provide even more “Investments in savings to consumers while creating more than energy efficiency 15,000 skilled green jobs continue to be one of