SECTIONS 17650-17653 - California Statutes

EDUCATION CODE

SECTION 17650-17653

17650. The Legislature finds and declares that it is in the
interest of the state and of the people thereof for the state to aid
school districts in finding cost-effective methods of conserving
energy in school buildings maintained by the districts. The
Legislature also finds that while many districts may desire to
participate in energy conservation programs designed to reduce the
steadily rising costs of meeting the energy needs of school
buildings, that the costs involved in improving existing school
facilities to become more energy efficient are often prohibitive.
It is the intent of the Legislature in enacting this chapter to
encourage school districts to retrofit school buildings so as to
conserve energy and reduce the costs of supplying energy.

17651. (a) School districts may borrow funds from federal or state
regulated financial institutions for the purposes of design and
construction costs associated with retrofitting school buildings to
become more energy efficient. School districts shall only be
authorized to borrow an amount which does not exceed that which can
be repaid from energy cost avoidance savings accumulated from the
improvement of school facilities.
(b) Any savings and loan association may make loans or advances of
credit pursuant to subdivision (a) in an amount not in excess of 5
percent of its total assets. This investment may be in addition to
any other investment savings and loan associations are permitted to
undertake under Section 6705.7 of the Financial Code.

17652. To the extent that these services are available, school
districts shall arrange for the preaudit and postaudit of school
buildings by investor-owned or municipal utility companies or by
independent energy audit companies or organizations which are
recognized by federal or state regulated financial institutions. The
preaudit shall identify the type and amount of work necessary to
retrofit the buildings and shall include an estimate of projected
energy savings. The postaudit shall be conducted upon completion of
the retrofitting of the school buildings to ensure that the project
satisfies the recommendations of the preaudit.

17653. School districts taking action under this chapter shall
contract with qualified businesses capable of retrofitting school
buildings. To the extent that lists of qualified businesses are made
available to school districts by investor-owned or municipal utility
companies or federal or state regulated financial institutions,
school districts may utilize the services of these businesses.