25470-25474

PUBLIC RESOURCES CODE
SECTION 25470-25474




25470.  As used in this chapter:
   (a) "Act" means the federal American Recovery and Reinvestment Act
of 2009 (Public Law 111-5).
   (b) "Allocation" means a loan of funds by the Department of
General Services pursuant to the procedures specified in this
chapter.
   (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) "Department" means the Department of General Services.
   (e) "Energy audit" means a determination of the energy consumption
characteristics of a building that does all of the following:
   (1) Identifies the type, size, and energy use level of the
building and the major energy using systems of the building.
   (2) Determines appropriate energy conservation maintenance and
operating procedures.
   (3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
   (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) "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) "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) "Fund" means the Energy Efficient State Property Revolving
Fund.
   (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) "State agency" means a unit of state government, including any
department, agency, board, or commission under the State of
California.
   (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.



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) The fund shall be administered by the department. The
department may use other funding sources to leverage project loans.
   (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) The Controller shall disburse moneys in the fund for the
purposes of this chapter, as authorized by the department.
   (e) Moneys in the fund, including all interest earnings, shall be
clearly delineated and distinctly accounted for in accordance with
the requirements of the act.


25472.  (a) The department, in consultation with the commission,
shall establish a process by which projects are identified and
funding is allocated.
   (b) Beginning July 1, 2009, the department shall use money in the
fund for projects that will improve long-term energy efficiency and
increase energy use savings.
   (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 must be consistent with these requirements and guidelines.
   (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) 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) The department shall determine a reasonable loan repayment
schedule that may 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) 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) 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) 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.



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) 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.



25474.  (a) Any repayment of loans made pursuant to this chapter,
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) The department may recover costs of administering the projects
and related costs through energy utility rebates awarded to the
state agency as a result of completed projects 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.