BILL ANALYSIS Ó AB 1186 Page 1 ( Without Reference to File ) CONCURRENCE IN SENATE AMENDMENTS AB 1186 (Skinner) As Amended August 31, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(May 12, 1022) |SENATE: |21-18|(August 31, | | | | | | |2012) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: NAT. RES. SUMMARY : Establishes the School Energy Efficiency and Greenhouse Gas Reduction Act (Act) to provide funding for the California Energy Commission's (CEC) Bright Schools Program. The Senate amendments delete the Assembly version of the bill, and instead create that School Energy Efficiency and Greenhouse Gas Reduction Act (Act), which: 1)Establishes the School Energy Efficiency and Greenhouse Gas Reduction Fund (Fund), and specifies that moneys in the Fund be available to the California Energy Commission (CEC), upon appropriation by the Legislature, for purposes of implementing the Act. 2)Specifies that grants awarded pursuant to the Bright Schools Program be awarded to eligible institutions, which are defined as a K-12 public school. 3)Requires CEC to ensure that adequate energy audit, measurement, and verification procedures are employed to ensure that energy savings and greenhouse gas emissions (GHG) reductions occur as a result of any grants made. 4)Requires CEC to adopt any regulations or guidelines necessary to implement the Act, including emergency regulations. 5)Requires CEC, in consultation with the Superintendent, to establish a system to prioritize eligible institutions for grants under the Act, including the age of the institution, the proportion of students receiving free and reduced-price AB 1186 Page 2 meals, whether the facilities have been recently modernized, whether the facilities are operated as a year-round school, the potential for demand reduction, and the school's score from an energy rating system. 6)Requires CEC to determine, based on the annual energy savings reported by the institutions, the total GHG reductions achieved under the Act. 7)Specifies that the Act does not affect the eligibility of schools awarded grants to receive other incentives. 8)Permits any eligible institution to submit an application to CEC for a grant from the Fund for GHG reductions achieved through energy efficiency improvements. 9)Requires each eligible institution that receives a grant pursuant to the Act to report the amount of energy saved to the CEC, as specified. EXISTING LAW : Under its existing regulatory authority, CEC established the Bright Schools Program to provide energy audits, review existing school proposals and designs, and develop equipment performance specifications for K-12 public schools. AS PASSED BY THE ASSEMBLY , this bill required the Public Utilities Commission (PUC) to establish a program to award grants to K-12 public schools for energy efficiency improvements. The PUC would be required to direct gas and electrical corporations to implement that program within their respective service areas. FISCAL EFFECT : Unknown COMMENTS : According to the author, "schools account for nearly 12 percent of commercial energy consumption, and last year's General Fund expenditures for utility bills at K-12 public schools exceeded $1 billion? Retrofitting inefficient classrooms provides long-term savings and budgetary flexibility so districts can concentrate limited resources on education and not utility bills." This bill is intended to allow CEC to resume the Bright Schools Program. The Bright Schools Program was established by CEC to provide AB 1186 Page 3 funding to K-12 public schools for energy audits, review of existing school proposals and designs, and the development of equipment performance specifications. This bill establishes the Act and establishes the Fund to award grants to K-12 public schools through the CEC's Bright Schools Program. The bill does not identify the source of any potential funds. The Bright Schools program has been inactive since June, 2010. According to the CEC's Notice of Temporary Suspension of Technical Assistance Program: Due to workload constraints associated with American Recovery and Reinvestment Act (ARRA) funds, technical assistance will not be offered to BSP applicants after December 3, 2009. Typically, the technical assistance program has provided energy audits to K-12 schools to identify energy saving recommendations or reviews of energy proposals and designs. Technical assistance will continue to be conducted for ARRA related activities. Analysis Prepared by : DaVina Flemings/ U.& C./ (916) 319-2083 FN: 0005910