President’s Initiative:
The First Research University to Achieve Carbon Neutrality
TheUniversityofCaliforniaisanationalleaderinsustainabilityandeffectiveactionstoreducegreenhouse
gasestomitigateclimatechange.TheUniversitygalvanizeditspositionforenvironmentalstewardshipin
2007whenalltenChancellorsbecamesignatoriestotheAmericanCollege&UniversitiesPresidents’Climate
Commitment.Toreachournextgoal,whichistobringtheUniversitytocarbon‐neutralityinitsoperationsby
2025,wewillneedtotakeboldeffortstochangethefundamentalprofileofourenergysources.Thisinitiative
proposesfoureffortsthatwillenableustobecomethefirstmajoruniversitysystemtoachievecarbon
neutrality:
 Wholesaleelectricity:TheUniversitywillcreateasharedservicecenterwhichwillmanagethe
supplyofwholesaleelectricitytothefivecampusescurrentlyeligiblefordirectaccess.Theservice
centerwillbothowngenerationresourcesandpurchaselong‐termforwardcontracts.Thiscenterwill
providetheUniversitytheflexibilitytoinvestinanddevelopalternativeenergysourcesortopurchase
suchpowerthroughlong‐termcontracts.Thisgroupwillalsoexplorealternativesforextending
renewableenergyprocuredtoallcampuses,includingthosenotcurrentlyeligibleduetoregulatory
restrictions.
 CampusEnergyEfficiencyandRenewableEnergy:Ourcampuseshavebeenpioneersintheareaof
energyefficiency,investingnearly$250millioninthepastfiveyearsinapartnershipwithstatewide
IOU’s,aneffortthathasresultedinreductionsofover112,000metrictonsofcarbon.TheUniversity
willcontinuetheseeffortsonenergyefficiencyprojectsandexpandthemtosmall‐tomedium‐scale
renewableenergysourcesatourlocations.Thesestrategiesareavailableateverycampus,butare
particularlyimportantforcampusesthatarenotdirectaccesscampuses.TheUniversitywillalsolook
toexpandthefundingsourcesavailabletofundtheseprojects,particularlyfromtheStatesources
throughProposition39fundsandtheAirResourcesBoard.
 NaturalGasandBiogasProcurement:Currently,naturalgasaccountsforapproximately73%ofthe
University’spowersupply.DuetothescaleoftheUniversity’snaturalgaspurchases,UCwill
effectivelymanagethepurchaseofnaturalgastomitigaterisktolerancetopricechanges.The
Universitywillalsodeveloprenewablenaturalgas,commonlyreferredtoasbiogas,toaddressthe
largeproportionofcampusemissionsfromnaturalgasconsumption.Theseprojectswillincludeboth
directdevelopmentofbiogasprojectsaswellasthepurchaseofbiogascontractsthroughoutside
producers.
 ManagementofEnvironmentalAttributes:TheUniversityisengagedintheportfoliomanagement
ofallowancesandoffsetsandcompliancewithCalifornia’scapandtradeprogramandother
environmentalattributeprograms.Astheseprogramsgeneratefundstobeusedforprojectsresulting
inthereductioningreenhousegasemissions,theUniversitywillactivelysolicitfundstosupportour
initiatives.
Theseeffortswillbegovernedbycampusrepresentativeswhowillsetprocurementstrategiesinvolvinglong‐
termfinancialexposure,changestopre‐determinedpricecaps,oranychangeinstrategyleadingtoamaterial
impactoncostassumptions.Energystrategiessuchasthosedescribedabovedependonregulatory
restrictions,contracts,andoperationalconstraintsthatgovernthechoicethatcampuseshave.Asaresult,the
specificsetofstrategieswillvarybycampusandbyproject.
UCOP BUSINESS OPERATIONS
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