Amended in Assembly May 24, 2013

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 Bill No. 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 Fund for 5 fiscal years beginning with the 2013-14 fiscal year. Moneys in the Clean Energy 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 the Clean Energy Job Creation Fund. Existing law creates the Citizens Oversight Board with specified responsibilities relative to the review of expenditures from the Clean Energy Job Creation Fund, including the submission of an evaluation to the Legislature. begin insert Existing law establishes the State Energy Conservation Assistance Account, a continuously appropriated account, for the purposes of funding loans to schools, hospitals, public care institutions, and units of local government to maximize energy savings. end insert

begin delete

This bill would require the State Energy Resources Conservation and Development Commission, commonly known as the Energy Commission, 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.

end delete

This bill would require, for each fiscal year that begin delete revenue is end delete begin insert revenues are end insert deposited into the Clean Energy Job Creation Fund, that 75% of begin delete that revenue end delete begin insert those revenues end insert be provided to eligible institutions for grants for eligible projects. begin delete 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. end delete begin insert The bill would require the State Department of Education to administer 89% of those revenues for local educational agencies for the purposes of eligible projects, as specified. The bill would require the Chancellor of the California Community Colleges to administer 11% of those revenues for the California Community Colleges. The bill would require the department or the Office of the Chancellor of the California Community Colleges, as applicable, in consultation with the State Energy Resources Conservation and Development Commission, to evaluate proposals from eligible institutions taking into account specified factors. The bill would require 25% of the revenues deposited into the Clean Energy Job Creation Fund to be transferred to the State Energy Conservation Assistance Account, thereby making an appropriation. For the 2013-14 fiscal year, the bill would allocate the moneys transferred to the account for loans, loan loss reserves, and technical assistance to schools and community college districts. end insert

begin delete

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. 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 delete begin delete

This bill would require, for each fiscal year before the 2016-17 fiscal year that revenue is deposited into the Clean Energy 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.

end delete begin delete

This

end delete

begin insert The end insert bill would require begin insert , to the extent moneys are available, end insert moneys for job training and workforce development to be available from the Clean Energy 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. begin delete This end delete begin insert The end insert bill would require begin insert , to the extent moneys are available, end insert moneys for public-private partnerships to be available from the Clean Energy 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 begin delete receiving end delete begin insert completing an eligible project with end insert financial assistance from the Clean Energy 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:

SECTION 1.  

The Legislature finds and declares all of the
following:

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

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

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

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

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

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

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

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

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

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

begin insert

(k) In addition to energy efficiency retrofits and clean energy
installations, it is the intent of the Legislature that funds be
available for allocation to local educational agencies to develop
expertise in energy management capability. Energy managers can
provide schools, particularly the smallest and neediest, with
resources and best practices to implement energy efficiency and
clean energy installations across California’s more than 1000
school districts with schools having kindergarten or grades 1 to
12, inclusive, as well as oversight to ensure proper reporting and
data analysis for eligible projects.

end insert

SEC. 2.  

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

 

Division 16.4.  PROPOSITION 39 IMPLEMENTATION:
UPGRADING OUR SCHOOLS AND CREATING CLEAN
ENERGY JOBS

 

26225.  

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

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

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

begin insert

(c) “Department” means the State Department of Education.

end insert begin delete

(c)

end delete

begin insert (d) end insert  “Eligible institution” means a public school or school district
providing instruction in kindergarten or grades 1 to 12, inclusive,
or a community college.

begin delete

(d)

end delete

begin insert (e) end insert  “Eligible project” means a project that meets the
requirements of Division 16.3 (commencing with Section 26200)
and that creates jobs in California by improving energy efficiency,
installing clean energy technology, or making energy system
improvements consistent with that division.

begin delete

(e)

end delete

begin insert (f) end insert  “Job Creation Fund” means the Clean Energy Job Creation
Fund established in Section 26205.

begin delete

(f)

end delete

begin insert (g) end insert  “Public buildings” begin delete include end delete begin insert includes end insert structures, buildings,
facilities, or works that a public agency is authorized to construct
or use, and automobile parking lots, landscaping, and other
facilities, including furnishings and equipment, incidental to the
use of any structures, buildings, facilities, or works, and also
includes the sites, any easements, and rights-of-way appurtenant
thereto, or necessary for their full use.

26230.  

(a)  begin delete (1) end delete begin delete   end delete begin delete The commission end delete begin insert For each fiscal year that
revenues are transferred to the Job Creation Fund pursuant to
Section 26205, 75 percent of those revenues shall, upon
appropriation by the Legislature, be provided to eligible
institutions for grants for eligible projects. end insert

begin insert (1) end insert begin insert   end insert begin insert The department end insert shall administer begin delete grants, loans, or other
financial assistance to eligible institutions end delete begin insert 89 percent of the funds
transferred pursuant to this subdivision for local educational
agencies end insert for the purpose of eligible projects that create jobs in
California by reducing energy demand and consumption at eligible
institutions in accordance with this section.

begin insert

(2) The chancellor shall administer 11 percent of the funds
transferred pursuant to this subdivision for the California
Community Colleges.

end insert begin delete

(2)

end delete

begin insert (3) end insert  The begin insert department, in consultation with the end insert commission begin insert and
the Public Utilities Commission, end insert shall establish criteria applicable
to all contracts begin insert awarded using grant funding pursuant to paragraph
(1) end insert , including, but not limited to, all of the following:

(A) Standard methods for estimating energy benefits, including
reasonable assumptions for current and future costs of energy begin insert , and
guidelines to compute the cost of energy saved as a result of
implementing eligible projects funded by this division end insert .

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

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

begin delete

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

end delete begin insert

(4) The department, in consultation with the commission and
the Public Utilities Commission, shall propose guidelines for
eligible projects in each climate zone for the purpose of paragraph
(1).

end insert begin delete

(c)

end delete

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

begin delete

(d)

end delete

begin insert (c) end insert  Eligible institutions shall propose eligible projects to the
begin delete commission, end delete begin insert department or the Office of the Chancellor of the
California Community Colleges, as applicable. The department
or the Office of the Chancellor of the California Community
Colleges, in consultation with the commission, shall evaluate the
proposals end insert taking into consideration at least the following factors:

(1) The age of the school facilities begin insert , as well as any plans to close
or demolish the facility end insert .

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

(3) Whether the facilities have been recently modernized.

(4)  begin delete Whether end delete begin insert The facilities’ hours of operation, including whether end insert
the facilities are operated as a year-round school.

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

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

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

begin insert

(8) The expected number of trainees and direct full-time
employees.

end insert begin delete

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

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

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

(f)

end delete

begin insert (d) end insert  The begin insert department, in consultation with the end insert commission begin delete shall end delete
begin insert and the Public Utilities Commission, shall do both of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert Propose guidelines for schools to end insert ensure that adequate
energy audit, measurement, and verification procedures are
employed to ensure that energy savings and greenhouse gas
emissions reductions occur as a result of any grants, loans, or other
financial assistance provided pursuant to this section.

begin insert

(2) Develop a simple application form, that includes project
description, estimated energy savings, expected number of jobs
created, current energy usage, and costs.

end insert begin delete

(g)

end delete

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

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

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

begin delete

(h)

end delete

begin insert (f) end insert  It is the intent of the Legislature that monetary savings at
eligible institutions from retrofit and installation projects pursuant
to this section be used to benefit students and learning at those
institutions.

begin delete

26233.  

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

end delete

begin delete 26235. end delete
begin insert 26233. end insert   

(a) (1) For each fiscal year begin delete prior to the 2016-17 fiscal
year end delete that revenue is begin delete deposited into end delete begin insert transferred to end insert the Job Creation
Fund, 25 percent of that revenue shall be begin delete allocated to eligible
institutions for low-interest or no-interest revolving loans or for
loan loss reserves for eligible projects and technical assistance for
facilities at public elementary or secondary schools or community
colleges end delete begin insert transferred to the State Energy Conservation Assistance
Account for low-interest and no-interest revolving loans and loan
loss reserves for eligible projects and technical assistance end insert .

begin delete

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

end delete begin insert

(2) For the 2013-14 fiscal year, funds in the State Energy
Conservation Assistance Account transferred pursuant to this
section shall be available for schools having kindergarten or
grades 1 to 12, inclusive, or community colleges. If a school having
kindergarten or grades 1 to 12, inclusive, has an eligible project,
and the sum of a grant awarded pursuant to Section 26230 and
any state, federal, or local incentives is less than the cost of the
eligible project, then that school shall be eligible to receive a loan
from the State Energy Conservation Assistance Account pursuant
to Chapter 5.2 (commencing Section 25410) of Division 15 to make
up the difference.

end insert

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

begin insert

begin insert 26234. end insert   

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

end insert

26240.  

begin delete Moneys end delete begin insert To the extent moneys are available, moneys end insert
for job training and workforce development shall be available from
the 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 to train and employ disadvantaged youth,
veterans, and others on energy efficiency and clean energy projects,
consistent with the requirements of Division 16.3 (commencing
with Section 26200).

26245.  

begin delete Moneys end delete begin insert To the extent moneys are available, moneys end insert
for public-private partnerships shall be available from the Job
Creation Fund, upon appropriation by the Legislature, for assistance
in establishing and implementing Property Assisted Clean Energy
(PACE) programs or similar financial and technical assistance for
cost-effective retrofits and installations that include repayment
requirements, consistent with the requirements of Division 16.3
(commencing with Section 26200).

26250.  

(a) No sooner than one year, but no later than 15
months after a person or entity begin delete receives end delete begin insert completes an eligible
project with end insert a grant, loan, or other assistance from the Job Creation
Fund, the person or entity shall submit a report to the Citizens
Oversight Board created pursuant to Chapter 3 (commencing with
Section 26210) of Division 16.3 containing the following
information, to the extent applicable:

(1) The number of direct full-time jobs created and the number
of job years for each job created.

(2) The amount of energy saved begin insert , including the cost of energy
saved as determined by a methodology established by the
commission end insert .

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

(4) The number of trainees.

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

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

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

26255.  

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