Energy

Increase school facility energy efficiency and reduce greenhouse gas emissions with each new construction and modernization, leading to a net zero energy and net zero carbon future for school buildings. California Governors have set goals for sustainability and the Division of the State Architect (DSA) is supporting schools in their efforts to achieve these goals. DSA also developed the California Sustainable Schools Showcase aims to acknowledge challenges, dispel myths, and share innovative solutions by showcasing school districts’ efforts to plan for and prioritize sustainability in public school facilities in California.

Statistic

The cohort included fifty-seven districts from 29 counties across the state of California which met monthly and was completed June 2021.

Key Initiatives

• The California Sustainable Schools Showcase aims to acknowledge challenges, dispel myths and share innovative solutions by showcasing school districts’ efforts to plan for and prioritize sustainability in public school facilities in California. Educational, administrative, and maintenance buildings that exhibit innovative ideas and successfully capture both sustainability and energy efficiency through building programming, design, and the implementation of cutting-edge technology systems will be featured. Zero net energy, low carbon and carbon neutral facilities, and other strategies for sustainable schools will be highlighted to showcase those districts throughout the state that have been able to implement these strategies in both new construction and alterations to existing buildings.
• The Getting to Zero Over Time is a cohort facilitated by New Buildings Institute (NBI) and DSA’s Sustainability Education & Outreach Program where K–12 public school districts are supported in efforts to develop their road map to net zero energy and zero carbon across their portfolio. Fifty-seven districts from 29 counties across the state of California have joined NBI and DSA on this path to zero to ensure school districts can comply with rapidly advancing legislation and policy in California that targets full decarbonization of the built environment by 2045. This effort aims to bring tailored support through a series of remote learning opportunities, and peer-to-peer information exchange. Additional information on the cohort is on NBI’s Zero Energy webpage.
• NBI has issued the "Decarbonization Roadmap Guide for School Building Decision Makers" and accompanying toolbox of resources to assist school districts leverage funding for learning spaces that are better for the occupants and the environment. This guide and toolbox of resources can provide key elements for creating a roadmap, and an outline of goals and approaches to consider on the path to carbon neutrality.
• A Roadmap for Getting to Zero Net Energy and Carbon Over Time in Schools (YouTube)
• Article: "Schools Collaborate on the Roadmap to Zero Carbon" written by Reilly Loveland, NBI.

Statistic

• FMD Buildings support electric grid reliability by demonstrating electricity use reduction during peak energy events and have offset electricity costs with over $215,000 earned in incentives/rebates since 2018 for successful demand response program participation.

Key Initiatives

• FMD created recommended operational measures guidance for building management teams to take during peak energy events in 2019 and shares this info throughout the summer each year.
• Each year, FMD is in contact with the electric utilities that provide services for FMD portfolio of buildings located throughout the state and enrolls eligible buildings in the demand response programs that are available that year.

Education Code Section 17077.35 was amended to provide Local Educational Agencies (LEA) access funding for energy efficiency components when building new, or modernizing existing, school facilities to advance state energy goals and adapt to higher average temperatures that pose a threat to the health and safety of pupils and staff.

Statistic

• The Energy Efficiency grants created as part of Proposition 2 could potentially inject tens of millions, or even hundreds of millions of dollars into California's school facility portfolio and will create sustainable spaces for school children to learn in.

Key Initiatives

• The School Facility Program (SFP) is administered by the Office of Public School Construction (OPSC) under the authority of DGS. OPSC implements and administers a $54.4 billion school facilities construction program, and has responsibilities ranging from processing funding for grant applications, assisting LEAs throughout the life cycle of a school facilities construction project, reviewing expenditures, performing accounting and reconciliation, providing administrative support to its approving entity the State Allocation Board (SAB), and preparing regulations, policies, and procedures to carry out those duties.
• Assembly Bill 247 (Chapter 81, Statutes of 2024) created Proposition 2, which was approved by California's voters in November of 2024. The new legislation amended Education Code Section 17077.35 to provide LEAs with access to energy efficiency grants. The grants are awarded as a percentage increase to the construction grants, not to exceed five percent of the amount provided in an SFP new construction or modernization project that has a received date at OPSC of October 31, 2024, or after.

• The energy efficiency grants are intended to provide funding for energy efficiency and renewable energy measures that exceed Title 24 standards, including, but not limited to, the following: HVAC, school kitchen equipment, water heating, ground source temperatures for heating and cooling, energy and water conservation, load reduction, peak-load shifting, solar water heating technologies, onsite renewable energy and storage, shade structures, and the conversion of ground and rooftop surfaces to materials with low absorption and reflection of heat.

• As of March 2025, OPSC is working with stakeholders to create regulations, policies, and procedures to successfully implement the new energy efficiency grants. OPSC plans to bring forward regulations for SAB approval in the summer or fall of 2025, with the regulations becoming effective in late 2025 or early 2026.

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The Solar Complete Project

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The Clean Energy Unit has been working with its A&E retainers, Glumac and ARUP, to evaluate microgrid projects for state agencies with the idea of introducing or extending resiliency to state facilities. The Clean Energy Unit also installs renewable energy systems and Distributed Energy Resources (DERs) for California agencies. The Clean Energy Unit's legacy program utilizes a unique project delivery method through a specialized Power Purchase Agreement (PPA) energy contract.

Statistic

•  Over 100 MW installed and $64 million estimated saved in energy purchases to date.

Key Initiatives

• DGS has contracted for the study of several microgrid projects and three of those are ready to be released in a future Request for Proposal. Based on the critical function of the Office of Emergency facility in Sacramento, CA, DGS is recommending a microgrid that will combine existing solar, diesel generators, EV chargers, and BESS to help this location remain operational even should the grid go down. In addition to this facility, DGS has evaluated microgrid projects for facilities that are or will operate independently of the power grid: CDFW Carrizo Plains, CalFire Stone Mountain, and DWR Leviathan Mine.
  • The proposed microgrid at the OES facility will better use the energy generated on-site by solar and combine multiple sources (Utility, solar, generator) to reduce reliance on the grid during grid shutdowns. DGS is working with OES to determine the release of an RFP to move forward with the suggested work. The projects operating independently of the grid are nearing an RFP release as well.
  • As the state experiences more Public Safety Power Shutoff (PSPS) events and the cost of energy increases, DGS is helping state agencies rely less on the grid and providing options to allow these agencies to meet their operational goals regardless of the availability of the power grid.
•  The Power Purchase Agreement delivery method allows the Clean Energy Unit to typically deliver solar, wind, battery storage, and microgrid projects in 3 years or less, avoiding the complexities of a Capital Outlay Project, such as needing an approved Budget Change Proposal (BCP) and requires no upfront capital investment from the client agency. In a Public Private Partnership, utilizing the PPA delivery method, a private renewable energy developer is selected competitively and provides the financing for the cost of the system, constructs and maintains the system, and sells the energy generated on-site by the system directly back to the agency/facility. This provides significant economic savings, as the energy generated by the system is purchased at a lower cost and reduces the amount of electricity needed to be purchased from the utility. PPA agreements provide significant insulation from utility cost increases, as the PPA $/kWh is fixed for 20-25 years. All DGS PPAs require guaranteed minimum performance and are fully maintained by the private development partner, and thus don't burden state agencies with operating or maintaining a complex renewable energy system.

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The Solar Strategic Plan Goals

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The Clean Energy Unit (CEU), within DGS's Office of Sustainability, has worked with over 15 separate agencies to create approximately 45 energy generation projects on state facilities.  These projects generate a combined 100MW of electricity per year and save the participating agencies when compared to what they pay their local Utility. The CEU had a goal of installing 20MW of generation under its Power Purchase Agreement program.  However, developing new programs such as the Utility Scale program and the Contract Management program have slowed down progress.  7MWs of new generation were added in 2024 and CEU expects several projects to start construction in 2025.

Key Initiatives

• Currently, the CEU is exploring microgrid projects and has evaluated several in the past 8-15 months. Several of these projects will operate independently of the Utility grid with all power being generated and consumed onsite in remote locations without access to the Utility. Other projects will add Battery Energy Storage Systems (BESS) to facilities with existing solar generation. This will increase resiliency and reduce grid dependency should the grid be unavailable for PSPS events or other situations that would reduce or eliminate electrical availability from the Grid.
• CEU plans to continue executing behind the meter projects for state agency clients and is building a list of projects that will be released in future Request for Proposal offers, allowing qualified companies to compete and build these systems on behalf of the state. CEU estimates releasing two separate RFPs for behind the meter projects in 2025 which will lead to signed contracts in 2026 and reach construction in 2027.

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Utility Scale Program

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The Clean Energy Unit is developing large-scale generation and storage projects to either create a revenue stream to seed future projects or use those large-scale projects to generate power to be purchased by state agencies under Direct Access (DA) or a Community Choice Association (CCA).

Statistic

• 1MW of generation is equivalent to 2,000,000kWh. Therefore, a 50MW project is capable of generating 100,000,000kWh per year. If DGS charges vendors $0.005/kWh, then this represents $500,000.
   
• Generation and Revenue based on one 50MW generation project.
  50MW = 100,000,000kWh
  100,000,000kWh X $0.005 DGS fee = $500,000 per year.
   
• Generation and Revenue based on ten 50MW generation projects.
  500MW = 1,000,000,000kWh
  1,000,000,000kWh X $0.005 DGS fee = $5,000,000 per year.

Key Initiatives

• Currently, DGS is not allowed to participate in DA or CCA programs. So it is the intention to use available state land to allow a vendor to generate electrical power that will provide a revenue stream to DGS for future energy projects. If DGS can work with the CPUC to gain access to the DA and/or CCA programs, then DGS will purchase power generated by the vendors under a PPA.
• The financial impact of this program is easily calculated in the millions. If DGS can approve 10 projects each capable of generating an average of 50MW per project, DGS estimates savings of $500,000 per project per year. DGS has a pilot project on eProcure and expects to have feedback available as of summer 2025.

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Zero Net Energy

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Established policy to achieve Zero Net Energy for new and existing state buildings.

Statistic

• DGS has achieved Zero Net Energy for 61% of its building portfolio through 2023 and is currently evaluating for 2024. DGS exceeded the 2025 ZNE target three years ahead of schedule.

Key Initiatives

• Policy requires
• All new buildings, major renovations, and build-to-suit leases designed after 10/2017 to be ZNE
• 50% of existing building area to achieve ZNE by 2025
• ZNE buildings to meet energy efficiency requirements (10%> T-24 for new buildings; top 25% energy efficiency for existing buildings)
• ZNE buildings to generate equivalent renewable energy from on-site or long-term offsite sources to equal total energy over the year
• Motivated DGS to work with SMUD Utility to develop long-term SolarShares agreements to generate renewable power for DGS's portfolio of buildings
• DGS worked to improve the efficiency of most of its existing buildings to exceed ZNE targets
• DGS set and achieved high-efficiency targets for new construction and major renovations
• DGS installed on-site renewable energy at several locations

The Department of General Services (DGS) is required by PCC 12400-12404, provides state agencies with information and assistance regarding environmentally preferable purchasing (EPP), the procurement of goods and services that have a reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose. The Golden State Financial Marketplace (GS $Mart) is a program that provides innovative financing options for state and local government agencies that achieves better than commercial borrowing rates for the acquisition of eligible goods, services and energy savings or efficiency projects. (Government Code Section 14930 et seq.)

Statistics

• The State of California earned four stars for the IT products we acquired.  The environmental savings from choosing EPEAT-certified products are equivalent to the annual electricity consumption of 7,258 average US households and greenhouse gas reductions equivalent to taking 4,634 average US passenger vehicles off the road for a year.
• As of March 2025, DGS offers 164 statewide commodity contracts with one or more EPP criteria, and 27 of those contracts include ENERGY STAR and/or EPEAT requirements.
• GS $Mart leverages pre-negotiated model terms and conditions with a pool of qualified third-party lenders to acquire quick financing solutions for eligible purchases including energy savings/sustainability projects.
• GS $Mart provides ongoing analysis and consultation to customer agencies for loan payment plans and escrow funding services for each project that utilizes GS $Mart services.
• GS $Mart has financed over $160 million in energy savings/sustainability projects for DGS, CDCR, DMV, DSH, CHP, FTB, and CalOES.
• July 1998 Winner of the National Association of State Information Resource Executives (NASIRE)
• May 1998 Received one of the Government Technology Conference (GTC) Best Solutions Award
• June 1997 First place in the Outstanding Program Award by the National Association of Directors of Administration and General Services (NASDAGS)
• Sept 1996 Received the Bronze Medal Cronin Club Award for Innovation from the National Association of State Purchasing Officials (NASPO)

• DGS recommends ecolabels, post-consumer recycled content requirements, and/or that take-back services for goods and services the state buys.
• Ecolabels that promotes for energy efficiency include ENERGY STAR and EPEAT. 
• EPP recommendations are presented in the EPP Best Practices Manual (BPM), posted on the EPP website (https://www.dgs.ca.gov/PD/Resources/Find-EPP-Goods-and-Services).
• EPEAT Purchaser Award - The Green Electronics Council has granted the State of California the 2024 Electronic Product Environmental Assessment Tool (EPEAT) Purchaser Award in recognition of the procurement of sustainable IT products.
• GS $Mart has financed and provided services for approximately 20 energy savings/sustainability projects for the energy efficiency retrofitting of HVAC systems, lighting, boilers, chillers, solar, and other energy system upgrades for state facilities
• GS $Mart financings result in a positive cashflow or budget surplus for the customer agency by freeing up capital that would otherwise be tied up in purchasing the asset outright. The customer agencies also may realize a budget surplus from the annual utility savings from the performance of the energy savings contract. These utility or energy performance savings realized by the agencies generally exceed the cost/interest of the financing.
  
   

All of the recently built DGS projects in Sacramento have been designed and constructed using the most energy-efficient methods and systems, all exceeding DGS's minimum requirement of LEED Silver.  Allenby achieved LEED Platinum and is Zero-Net Energy, New Natural Resources Headquarters achieved LEED Platinum, and the newest of them all, the May Lee State Office Complex achieved LEED Gold and is Zero-Net Carbon, Zero-Net Energy is an all-electric campus.

Statistics

• Clifford Allenby Bldg EUI - 24.8
• New Natural Resources Headquarters EUI - 28.6
• May Lee State Office Complex EUI - 28

Key Initiatives

• Zero-Net Energy
• Zero-Net Carbon
• All Electric Complex
• DGS Minimum LEED Silver Requirement
• Low Energy Use Intensity (EUI)
• Executive Order B-18-12
• FMD Clifford L Allenby Sustainability Booklet
• FMD EO B-18-12