Amended in Assembly May 8, 2013

Amended in Assembly April 24, 2013

Amended in Assembly April 9, 2013

Amended in Assembly February 27, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 39


Introduced by Assembly Members Skinner and John A. Pérez

(Principal coauthor: Assembly Member Perea)

(Coauthors: Assembly Members Bloom, Brown, Ian Calderon, Dickinson, Frazier, Garcia, Gordon, Quirk-Silva, Rendon, Ting, Wieckowski, and Williams)

December 3, 2012


An act to add Division 16.4 (commencing with Section 26225) to the Public Resources Code, relating to energy efficiency, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 39, as amended, Skinner. Proposition 39: implementation.

The California Clean Energy Jobs Act, an initiative approved by the voters as Proposition 39 at the November 6, 2012, statewide general election, made changes to corporate income taxes and, except as specified, provides for the transfer of $550,000,000 annually from the General Fund to the Clean Energy Job Creation Fundbegin delete (Job Creation Fund)end delete for 5 fiscal years beginning with the 2013-14 fiscal year. Moneys in thebegin insert Clean Energyend insert Job Creation Fund are available, upon appropriation by the Legislature, for purposes of funding eligible projects that create jobs in California improving energy efficiency and expanding clean energy generation. Existing law provides for the allocation of available funds to public school facilities, university and college facilities, other public buildings and facilities, as well as job training and workforce development, and public-private partnerships, for eligible projects, as specified. Existing law establishes prescribed criteria that apply to all expenditures from thebegin insert Clean Energyend insert Job Creation Fund. Existing law creates the Citizens Oversight Board with specified responsibilities relative to the review of expenditures from thebegin insert Clean Energyend insert Job Creation Fund, including the submission of an evaluation to the Legislature.

This bill would require the State Energy Resources Conservation and Development Commissionbegin delete (Energy Commission)end deletebegin insert, commonly known as the Energy Commission,end insert to administer grants, loans, or other financial assistance to an eligible institution, defined as a public school providing instruction in kindergarten or grades 1 to 12, inclusive, or a community college, for the purpose of eligible projects, as defined, that create jobs in California by reducing energy demand and consumption at eligible institutions, as defined.

This bill would require, for each fiscal year that revenue is deposited into thebegin insert Clean Energyend insert Job Creation Fund, that 75% of that revenue be provided to eligible institutions for grants for eligible projects. The bill would require the commission to develop a formula to ensure that each region of the state receives a share of the statewide allocation under this bill that is reasonable equivalent to its proportion of the statewide average daily attendance, with 11% of grant funds to be awarded to community college districts, and would further require the Energy Commission, in consultation with the State Department of Education and the Chancellor of the California Community Colleges, to approve eligible projects proposed by eligible institutions, taking into consideration specified factors.

This bill would require an eligible institution that receives a grant, loan, or other financial assistance to report the amount of energy saved to the Energy Commission and to compute the cost of energy saved as a result of implementing projects funded by the grant, as prescribed.begin insert The bill would also require an eligible institution applying to the commission for a grant, loan, or financial assistance to install solely a clean energy technology to demonstrate the institution has implemented all cost-effective energy efficiency and demand response improvements.end insert

This bill would require, for each fiscal year before the 2016-17 fiscal year that revenue is deposited into thebegin insert Clean Energyend insert Job Creation Fund, that 25% of that revenue be allocated to eligible institutions, as defined, for low-interest or no-interest revolving loans or loan loss reserves for eligible projects and technical assistance for facilities at public schools and community colleges, as specified, and commencing with the 2016-17 fiscal year, would authorize that revenue to be allocated to those and other eligible institutions, public universities, or public buildings.

This bill would require moneys for job training and workforce development to be available from thebegin insert Clean Energyend insert Job Creation Fund, upon appropriation by the Legislature to the California Workforce Investment Board, for allocation to the California Conservation Corps, Certified Community Conservation Corps, Youth Build, preapprenticeship partnerships with state-certified apprenticeship programs, local educational agencies, community benefit organizations, and other existing workforce development programs, as specified, consistent with the requirements of the California Clean Energy Jobs Act. This bill would require moneys for public-private partnerships to be available from thebegin insert Clean Energyend insert Job Creation Fund, upon appropriation by the Legislature, for assistance to certain local governments to establish and implement Property Assisted Clean Energy programs or similar financial and technical assistance consistent with the requirements of the California Clean Energy Jobs Act.

The bill would require a person or entity receiving financial assistance from thebegin insert Clean Energyend insert Job Creation Fund to report certain information to the Citizens Oversight Board. The bill would require this information to be included in an annual report by the board to the Legislature.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) With the passage of Proposition 39 at the November 6, 2012,
4statewide general election, the people of California declared their
5intent to have multistate businesses treated equally under the
6Revenue and Taxation Code and to establish a path forward for
7schools and clean energy jobs.

P4    1(b) Between the 2013-14 and 2017-18 fiscal years, Proposition
239 will dedicate up to $550,000,000 annually to the Clean Energy
3Job Creation Fund.

4(c) Proposition 39 establishes objectives for clean energy job
5creation, including funding energy efficiency projects and
6renewable energy installations in public schools, universities, and
7other public facilities.

8(d) Proposition 39 identifies energy efficiency retrofits and clean
9energy installations at public schools as one way to promote private
10sector jobs to save energy and money.

11(e) The United States Environmental Protection Agency
12estimates that schools waste 30 percent of their energy
13unnecessarily through inefficiencies. The financial savings from
14more efficient buildings would provide schools with the flexibility
15to pay for other upgrades and programs that enhance student
16learning.

17(f) In California, more than 70 percent of the state’s kindergarten
18and grades 1 to 12, inclusive, public school classrooms are over
1925 years old and schools account for approximately 12 percent of
20all commercial energy consumption. This represents a significant
21cost to public schools and to California taxpayers.

22(g) With the passage of Proposition 39, the state will be able to
23reduce energy demand at public schools and provide long-term
24savings and budgetary flexibility so schools can concentrate their
25limited resources on education and not utility bills.

26(h) Proposition 39 also establishes a Citizens Oversight Board
27to review expenditures, audit the Clean Energy Job Creation Fund,
28and maintain accountability of the fund.

29(i) It is the intent of the Legislature to establish guidelines for
30clean energy expenditures from the Clean Energy Job Creation
31Fund.

32(j) It is further the intent of the Legislature to ensure that schools
33receive and prioritize high-quality facility retrofits and installations
34that lead to persistent energy savings.

35

SEC. 2.  

Division 16.4 (commencing with Section 26225) is
36added to the Public Resources Code, to read:

 

P5    1Division 16.4.  PROPOSITION 39 IMPLEMENTATION:
2UPGRADING OUR SCHOOLS AND CREATING CLEAN
3ENERGY JOBS

4

 

5

26225.  

For purposes of this division, the following terms have
6the following meanings:

7(a) “Chancellor” means the Chancellor of the California
8Community Colleges.

9(b) “Commission” means the State Energy Resources
10Conservation and Development Commission.

11(c) “Eligible institution” means a public school or school district
12providing instruction in kindergarten or grades 1 to 12, inclusive,
13or a community college.

14(d) “Eligible project” means a project that meets the
15requirements of Division 16.3 (commencing with Section 26200)
16and that creates jobs in California by improving energy efficiency,
17installing clean energy technology, or making energy system
18improvements consistent with that division.

19(e) “Job Creation Fund” means the Clean Energy Job Creation
20Fund established in Section 26205.

21(f) “Public buildings”begin delete has the same meaning as in subdivision
22(k) of Section 4217.11 of the Government Codeend delete
begin insert include structures,
23buildings, facilities, or works that a public agency is authorized
24to construct or use, and automobile parking lots, landscaping, and
25other facilities, including furnishings and equipment, incidental
26to the use of any structures, buildings, facilities, or works, and
27also includes the sites, any easements, and rights-of-way
28appurtenant thereto, or necessary for their full useend insert
.

29

26230.  

(a) begin insert(1)end insertbegin insertend insert The commission shall administer grants, loans,
30or other financial assistance to eligible institutions for the purpose
31of eligible projects that create jobs in California by reducing energy
32demand and consumption at eligible institutions in accordance
33with this section.

begin insert

34(2) The commission shall establish criteria applicable to all
35contracts, including, but not limited to, all of the following:

end insert
begin insert

36(A) Standard methods for estimating energy benefits, including
37reasonable assumptions for current and future costs of energy.

end insert
begin insert

38(B) Contractor qualifications, licensing, and certifications
39appropriate for the work to be performed, provided that the
P6    1commission shall not create any new qualification, license, or
2certification pursuant to this subparagraph.

end insert
begin insert

3(C) Limits for grants or loans for each type of eligible
4improvement.

end insert

5(b) For each fiscal year that revenue is deposited into the Job
6Creation Fund, 75 percent of that revenue shall be provided to
7eligible institutions for grants for eligible projects.

8(c) The commission shall develop a formula to ensure that each
9region of the state receives a share of the statewide allocation
10pursuant to this section that is reasonably equivalent to its
11proportion of the statewide average daily attendance, with 11
12percent of grant funds to be awarded to community college
13districts. Within that share, the commission shall, in consultation
14with the State Department of Education and the chancellor, approve
15eligible projects based on at least the factors in subdivision (d).

16(d) Eligible institutions shall propose eligible projects to the
17commission, taking into consideration at least the following factors:

18(1) The age of the school facilities.

19(2) The proportion of students receiving free and reduced-price
20meals.

21(3) Whether the facilities have been recently modernized.

22(4) Whether the facilities are operated as a year-round school.

23(5) The project’s potential for energy demand reduction.

24(6) The school’s score from an energy rating system such as the
25United States Environmental Protection Agency’s Energy Star
26system.

27(7) The project’s ability to facilitate matriculation into certified
28apprenticeship programs.

29(e) (1) Any eligible institution may submit an application to
30the commission. The commission shall award moneys pursuant to
31this section only to eligible institutions.

begin insert

32(2) Any eligible institution applying to the commission for a
33grant, loan, or financial assistance to install solely clean energy
34technology shall demonstrate to the commission that the institution
35has implemented all cost-effective energy efficiency and demand
36response improvements.

end insert
begin delete

37(2)

end delete

38begin insert(3)end insert Each year, in accordance with a schedule established by the
39commission, an eligible institution that receives a grant, loan, or
40other financial assistance pursuant to this section shall report the
P7    1amount of energy saved to the commission and compute the cost
2of energy saved as a result of implementing energy efficiency
3retrofit and clean energy installation projects funded by this section.
4The cost shall be calculated in a manner established by the
5commission.

6(f) The commission shall ensure that adequate energy audit,
7measurement, and verification procedures are employed to ensure
8that energy savings and greenhouse gas emissions reductions occur
9as a result of any grants, loans, or other financial assistance
10provided pursuant to this section.

11(g) begin insert(1)end insertbegin insertend insert This section shall not affect the eligibility of any eligible
12entity awarded a grant pursuant to this section to receive other
13incentives available from federal, state, and local government, or
14from public utilities or other sources, or to leverage the grant from
15this section with any other incentive.

begin insert

16(2) (A) Any incentives available from federal, state, local
17government, public utilities, or other sources used by the entity
18that is awarded a grant, loan, or financial assistance shall be used
19to reduce the amount of the grant awarded to that entity.

end insert
begin insert

20(B) The sum of all incentives, grants, loans, or financial
21assistance received by the entity, including grant, loan, or financial
22assistance awarded pursuant to this chapter shall not exceed the
23total cost of the eligible project.

end insert

24(h) It is the intent of the Legislature that monetary savings at
25eligible institutions from retrofit and installation projects pursuant
26to this section be used to benefit students and learning at those
27institutions.

begin insert
28

begin insert26233.end insert  

The commission shall maintain a public database of
29the eligible entities that receive grants, loans, or other financial
30assistance under this division. The database shall include relevant
31metrics, to be determined by the commission, for electric, gas, and
32cost savings of the projects.

end insert
33

26235.  

(a) (1) For each fiscal year prior to the 2016-17 fiscal
34year that revenue is deposited into the Job Creation Fund, 25
35percent of that revenue shall be allocated to eligible institutions
36for low-interest or no-interest revolving loans or for loan loss
37reserves for eligible projects and technical assistance for facilities
38at public elementary or secondary schools or community colleges.

39(2) Commencing with the 2016-17 fiscal year, for each fiscal
40year that revenue is deposited into the Job Creation Fund, 25
P8    1percent of that revenue shall be allocated to eligible institutions,
2 public universities, or public buildings for low-interest or
3no-interest revolving loans or for loan loss reserves for eligible
4projects and technical assistance for facilities at public elementary
5or secondary schools, community colleges, public universities, or
6other public buildings.

7(b) Funds remaining in this account after the 2017-18 fiscal
8year shall continue to be available for loans pursuant to this section
9in future years.

10

26240.  

Moneys for job training and workforce development
11shall be available from the Job Creation Fund, upon appropriation
12by the Legislature to the California Workforce Investment Board,
13for allocation to the California Conservation Corps, Certified
14Community Conservation Corps, Youth Build, preapprenticeship
15partnerships with state-certified apprenticeship programs, local
16educational agencies, community benefit organizations, and other
17existing workforce development programs to train and employ
18disadvantaged youth, veterans, and others on energy efficiency
19and clean energy projects, consistent with the requirements of
20Division 16.3 (commencing with Section 26200).

21

26245.  

Moneys for public-private partnerships shall be
22available from the Job Creation Fund, upon appropriation by the
23Legislature, for assistance in establishing and implementing
24Property Assisted Clean Energy (PACE) programs or similar
25financial and technical assistance for cost-effective retrofits and
26installations that include repayment requirements, consistent with
27the requirements of Division 16.3 (commencing with Section
2826200).

29

26250.  

(a) Nobegin delete laterend deletebegin insert soonerend insert than one yearbegin delete afterend deletebegin insert, but no later
30than 15 months afterend insert
a person or entity receives a grant, loan, or
31other assistance from the Job Creation Fund, the person or entity
32shall submit a report to the Citizens Oversight Board created
33pursuant to Chapter 3 (commencing with Section 26210) of
34Division 16.3 containing the following information, to the extent
35applicable:

36(1) The number ofbegin insert direct full-timeend insert jobs createdbegin insert and the numberend insert
37begin insert of jobend insertbegin insert years for each job createdend insert.

38(2) The amount of energy saved.

39(3) The amount of new clean energy generation installed.

40(4) The number of trainees.

P9    1(5) The portion of financial assistance provided that was used
2for administrative costs.

3(6) The amount of time between awarding of the financial
4assistance and the completion of the project or training activities.

5(b) The Citizens Oversight Board shall report the information
6it receives pursuant to subdivision (a) to the Legislature as part of
7its responsibilities pursuant to subdivision (d) of Section 26210.
8The board’s report shall be submitted annually. The report shall
9also be posted on a publicly accessible Internet Web site.

10

26255.  

Funding for clean energy, energy efficiency, or job
11creation programs from sources other than the Job Creation Fund
12shall not be reduced or eliminated as a result of the availability of
13moneys from the fund.



O

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