BILL ANALYSIS Ó SB 128 Page 1 Date of Hearing: July 6, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 128 (Lowenthal) - As Amended: March 22, 2011 Policy Committee: Education Vote:7-3 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill authorizes modernization grant funding provided under the State School Facility Program (SSFP) to be used for high performance school projects and authorizes a project funded under the Career Technical Education (CTE) facilities program to be eligible for High Performance Incentive (HPI) grant funding. FISCAL EFFECT 1)State school facilities bond cost pressure, likely in the low millions to tens of millions, to authorize modernization grant funding to be used for high performance school projects. Likewise, there would be additional state school facilities bond cost pressure to increase funding for both the CTE facilities program and the HPI program because school districts, under this bill, are eligible to receive grant funding from both programs, as specified. 2)According to Office of Public School Construction (OPSC), there is approximately $73 million (of $100 million) available for the HPI program. To date, 145 school districts have received funding for approved HPI projects. 3)According to OPSC, there is approximately $745 million (of $3.3 billion) available in modernization funding. 4)According to OPSC, there is approximately $33 million (of $500 million) available for the CTE facilities program. To date, 428 projects have been funded from this program. SB 128 Page 2 COMMENTS 1)Background . AB 127 (Nunez), Chapter 35, Statutes of 2006, authorized Proposition 1D: the Kindergarten-University Public Education Facilities Bond Act of 2006 for $10.416 billion. The voters passed Proposition 1D on November 7, 2006. Of the $10.416 billion, $7.329 billion was allocated for K-12 education facilities, including $3.3 billion for modernization projects, $100 million for HPI grants, and $500 for the CTE facilities program. The SSFP, administered by the SAB, provides funding primarily to local education agencies (LEAs) to construct or modernize education facilities. The SSFP receives funding from a variety of sources, including the state GF and proceeds from the sale of general obligation (G.O.) bonds. Programs under the SSFP include new construction, modernization, the HPI, CTE facilities, and charter school facilities. 2)Purpose . The HPI provides incentive funding to augment new construction and modernization projects for the use of designs and materials that promote energy and water efficiency, natural lighting and indoor air quality, the use of recycled materials and materials that emit a minimal amount of toxic substances, the use of acoustics conducive to teaching and learning, and other characteristics of high performance schools. The HPI program is based on the rating criteria point system of the Collaborative for High Performance Schools (CHPS), as determined by the Division of State Architect. According to the author, "Current law does not allow new high performance systems to be funded under the modernization program. While new school facilities must meet rigorous environmental standards, our older classrooms remain ineligible for funding for some green building systems, creating inequities in our K-12 learning environments. We know that school districts can save operational dollars through the addition of energy efficiency and energy generation systems, yet some of these building systems are not available to districts through the state modernization program." SB 128 Page 3 This bill authorizes modernization grant funding to be used for high performance school costs and authorizes CTE facility projects to be eligible for HPI funding, as specified. 3)Previous legislation . SB 1193 (Lowenthal), 2010, increased the modernization and new construction grants under the SSFP by $250,000 per schoolsite (modernization) and $150,000 per schoolsite (new construction), if a school district incorporates the use of high performance design and materials specified in current law. This bill was placed on the inactive file in the Assembly in August 2010. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081