2009-10 Budget Analysis Series: General Government

Department of General Services

Energy Efficiency Upgrades

Proposed Spending for Energy Efficiency. The budget proposes a $5 million increase in Service Revolving Fund expenditures in 2009–10 to provide energy efficiency upgrades to lighting, heating, air conditioning, and ventilation systems at 12 state–owned facilities. Under the proposal, 80 percent of the funding requested would go to projects in Sacramento. The remainder would fund energy efficiency upgrades in state owned buildings located in Riverside, Stockton, San Francisco, and Redding. According to DGS, the proposed energy efficient upgrades will save the state money on its energy bills in the future. The department also suggests that approval of these projects would enable DGS to enter into agreements with California investor–owner utilities that would provide energy rebates to the state to offset the cost of future energy efficiency projects.

Withhold Recommendation. Despite the potential merits of improving the energy efficiency of state–owned buildings, committing the requested state resources at this time may not be the Legislature’s highest priority given the state’s fiscal condition. We understand that the pending federal economic stimulus package may contain funds for states to implement energy efficiency upgrades, such as envisioned by this proposal. We therefore withhold recommendation on the administration’s proposal pending more information on the availability of federal funds.

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