Common use of Clean Energy Clause in Contracts

Clean Energy. 1. Energy Efficiency: The energy efficiency goal follows the spirit of the U.S. Department of Energy’s Better Building Challenge. Each location’s percent reduction in energy use intensity (EUI) will be reported annually based on the sum of weather-adjusted energy use divided by the sum of the maintained gross square footage (OGSF50). The average annual reduction will be calculated using an established baseline as detailed in the UC EUI Tracking Methods and References. UCOP will use energy usage data from the systemwide purchased utility database for reporting campus energy use intensity, based on the campus-specified set of utility accounts and associated maintained gross square footage. Electric and gas site energy will be converted to kBTU and normalized for weather. Policy goals will be evaluated and adjusted as appropriate following the 2025 reporting year. 2. On-campus Renewable Energy a. Each location will determine the appropriate mix of measures to be adopted within its clean energy portfolio. The capacity to adopt these measures is driven by technological and economic factors, and each location will need to reevaluate its mix of energy measures regularly. b. Locations will periodically evaluate the feasibility of new on-site renewable electricity projects. The financial evaluation of these projects will fully account for the anticipated avoided costs associated with decreased on-site power production from combined heat and power plants and/or purchased electricity, as well as the avoided cost of carbon. 3. Off-campus Clean Electricity a. Clean electricity is defined as having a residual greenhouse gas emission factor that is less than 150 lbs. CO2/MWh. b. Clean electricity will be procured through the following methods and reported on annually:

Clean Energy. 1. Energy Efficiency: The energy efficiency goal follows the spirit of the U.S. US Department of Energy’s Better Building Challenge. Each location’s percent reduction in energy use intensity (EUI) will be reported annually based on the sum of weather-adjusted energy use divided by the sum of the maintained gross square footage (OGSF50). The average annual reduction will be calculated using an established baseline as detailed in the UC EUI Tracking Methods and References. UCOP will use energy usage data from the systemwide purchased utility database for reporting campus energy use intensity, based on the campus-campus- specified set of utility accounts and associated maintained gross square footage. Electric and gas site energy will be converted to kBTU and normalized for weather. Policy goals will be evaluated and adjusted as appropriate following the 2025 reporting year. 2. On-campus Renewable Energy a. Each location will determine the appropriate mix of measures to be adopted within its clean energy portfolio. The capacity to adopt these measures is driven by technological and economic factors, factors and each location will need to reevaluate its mix of energy measures regularlyon a regular basis. b. Locations will periodically evaluate the feasibility of new on-site renewable electricity projects. The financial evaluation of these projects will fully account for the anticipated avoided costs associated with decreased on-site power production from combined heat and power plants and/or purchased electricity, electricity as well as the avoided cost of carbon. 3. Off-campus Clean Electricity a. Clean electricity is defined as having a residual greenhouse gas emission factor that is less than 150 lbs. CO2/MWh. b. Clean electricity will shall be procured through the following methods and reported on annually: i. A location may opt-in to a utility provided green power program for its purchased electricity that meets the definition of clean electricity specified in V.B.3.a. ii. The UC Wholesale Power Program, which will procure and supply to participating campuses 100% clean electricity by 2018. iii. Those locations without access to a green power program may purchase Renewable Energy Credits (REC) to offset purchased electricity. In order to be counted, such RECs will be transferred to UC or retired on behalf of UC. 4. Where feasible, the University will seek to benefit from the economies of scale and to reduce risk by developing a portfolio for systemwide clean energy procurement contracts from which locations may benefit. 5. On-campus Combustion a. The University will develop and procure biogas supplies under the direction of the Energy Services Unit Governing Board (The Governing Board). The Governing Board will establish acceptable pricing for biogas projects and determine how the biogas will be allocated to each location. Locations may also implement local projects to directly transport biogas to the location.