The energy efficiency proposal is aimed at achieving stronger returns for the state's pension funds, in this instance by reducing the funds' costs to operate their buildings.
Under it, CalPERS will work with its real estate partners to assess energy use at properties it owns, identify buildings where investments in energy efficiency can yield positive returns, and design retrofit programs to capture those energy and cost savings.
If fully implemented, Angelides estimated that the conservation would save an estimated $29 million annually in energy costs, paying back the pension fund's investment in five years and yielding an internal rate of return of about 14 percent on that investment over 10 years. This investment would also create approximately 3,000 jobs and reduce energy demand by 52 megawatts, enough power to supply more than 35,000 homes, he claimed.
Full implementation of the energy conservation measures will cost about $142 million.
