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STATE OF CALIFORNIA GREEN BUILDING ACTION PLAN  175


                  Life-cycle cost assessments, defined later in this section, must be used in determin-
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               ing cost-effective criteria. Building projects less than 10,000 ft must use the same
               design standard, but certification is not required.
                  The California Sustainable Building Task Force (SBTF) in consultation with the
               Department of General Services (DGS), Department of Finance (DoF), and the
               California Energy Commission (CEC) is responsible for defining a life-cycle cost
               assessment methodology that must be used to evaluate the cost effectiveness of build-
               ing design and construction decisions and their impact over a facility’s life cycle.
                  Each new building or large renovation project initiated by the state is also subject to
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               a clean on-site power generation. All existing state buildings over 50,000 ft must meet
               LEED-EB standards by no later than 2015 to the maximum extent of cost effectiveness.

               Energy efficiency All state-owned buildings must reduce the volume of energy
               purchased from the grid by at least 20 percent by 2015 as compared to a 2003 base-
               line. Alternatively, buildings that have already taken significant efficiency actions must
               achieve a minimum efficiency benchmark established by the CEC.
                  Consistent with the executive order, all state buildings are directed to investigate
               “demand response” programs administered by utilities, the California Power
               Authority, to take advantage of financial incentives in return for agreeing to reduce
               peak electrical loads when called upon, to the maximum extent cost effective for each
               facility.
                  All occupied state-owned buildings, beginning no later than July 2005, must use the
               energy-efficiency guidelines established by the CEC. All state buildings over 50,000 ft 2
               must be retrocommissioned, and then recommissioned on a recurring 5-year cycle, or
               whenever major energy-consuming systems or controls are replaced. This is to ensure
               that energy and resource-consuming equipment is installed and operated at optimal
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               efficiency. State facility leased spaces of 5000 ft or more must also meet minimum
               U.S. EPA Energy Star standards guidelines.
                  Beginning in the year 2008, all electrical equipment, such as computers, printers,
               copiers, refrigerator units, and air-conditioning systems, that is purchased or operated
               by state buildings and state agencies must be Energy Star rated.

               Financing and execution The consultation with the CEC, the State Treasurer’s
               Office, the DGS, and financial institutions will facilitate lending mechanisms for
               resource efficiency projects. These mechanisms will include the use of the life-cycle
               cost methodology and will maximize the use of outside financing, loan programs, rev-
               enue bonds, municipal leases, and other financial instruments. Incentives for cost-
               effective projects will include cost sharing of at least 25 percent of the net savings with
               the operating department or agency.

               Schools
               New school construction The Division of State Architect (DSA), in consultation
               with the Office of Public School Construction and the CEC in California, was man-
               dated to develop technical resources to enable schools to be built with energy-efficient
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