U.C. Berkeley Energy Incentives Feasibility Study

It is envisioned that a Cap and Trade system would minimally involve: 1) improving the metering of buildings on campus and disaggregating electricity bills to building occupants, or departments 2) mandating users to pay for electricity, which would initially be supported by University funds 3) over time, the University electricity subsidy would be reduced in accordance with CalCAP targets 4) The money the University saves over the baseline energy bill would be allocated to an energy efficiency fund for capital improvements or energy efficiency initiatives 5) A cap and trade system could be established to provide further incentives for energy efficiency. Permits could be “grandfathered” based on past emissions, or another appropriate mechanism could be put in place. 6) Users would compete for energy savings and be recognized for their progresss. Such a program would set appropriate incentives for energy conservation and lead to a “culture of energy conservation” on campus. Users with the largest energy footprint, would have the most to gain by such a system. An initial feasibility study could be conducted over the summer 2007. A budget of $10-15k would perhaps suffice for this initial phase. The Berkeley Institute of the Environment could provide administrative support to the feasibility study team. Ultimately, the University would have to make a major commitment to implement such a system. The feasibility study would provide evidence to make such a decision. It is expected that the program would lead to zero net cost to the University.