Volume I, No. 17

March 12, 2009

SB 363 (Hancock) – Funding for Energy Efficiency Retrofits of Schools

By Ian Padilla

As introduced, SB 363 states legislative intent to make $69 million available for energy efficiency retrofits of schools and other public buildings to supplement existing electrical utility rebates available to school districts to make the effective rebate $5 per watt. 

During the energy crisis of 2001, the Department of Water Resources (DWR) entered into a number of long-term contracts to purchase electricity to serve the customers of the state’s three largest investor-owned utilities, and the majority of the contracts were signed at relatively high prices.  As a result of litigation, the state renegotiated its contracts with Williams Energy and settled other claims against the company, resulting in an allocation of cash and assets to the state, including $69 million which the settlement directed to be used to retrofit schools and other public buildings with renewable energy and energy efficiency projects. 

After unsuccessful attempts in the State Budget and through legislation to create a program for making these funds available to schools and other public entities for these purposes, the funding remains unspent.

This bill is a “placeholder” for creating a methodology for distribution of this funding.