Amended in Senate June 13, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 78

Introduced by Committee on Budget (Blumenfield (Chair), Bloom, Bonilla, begin insert Campos, end insert Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi, Nazarian, begin delete Rendon, end delete begin insert Skinner, end insert Stone, and Ting)

January 10, 2013

begin delete An act relating to the Budget Act of 2013. end delete begin insert An act to amend Section 25415 of, and to add Chapter 5 (commencing with Section 26225) to Division 16.3 of, the Public Resources Code, relating to energy, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 78, as amended, Committee on Budget. begin delete Budget Act of 2013. end delete begin insert Energy: Proposition 39 implementation. end insert

begin insert

(1) Existing law, the Energy Conservation Assistance Act of 1979, 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. Existing law requires each eligible institution to which an allocation has been made under the act to repay the principal amount of the allocation, plus interest, in not more than 30 equal semiannual payments, as determined by the State Energy Resources Conservation and Development Commission, or the Energy Commission. Existing law requires the Energy Commission, except as specified, to periodically set interest rates on the loans based on surveys of existing financial markets and at rates not less than 1% per annum.

end insert begin insert

This bill would permit not more than 40 equal semiannual payments and authorization of no-interest loans.

end insert begin insert

(2) 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, or the Job Creation Fund, for 5 fiscal years beginning with the 2013-14 fiscal year. Moneys in the 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, and 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 Job Creation Fund.

end insert begin insert

This bill would appropriate $3,000,000 from the Job Creation Fund to the California Workforce Investment Board to develop and implement a competitive grant program, in consultation with the Energy Commission and the Public Utilities Commission, for eligible community-based and other training workforce organizations preparing disadvantaged youth or veterans for employment, as specified.

end insert begin insert

This bill would, for the 2013-14 fiscal year, transfer $28,000,000 from the Job Creation Fund to the Education Subaccount, which this bill would create in the State Energy Conservation Assistance Account. This bill would appropriate moneys in the Education Subaccount to the Energy Commission for the purpose of low-interest and no-interest revolving loans and loan loss reserves for eligible projects and technical assistance, as prescribed. This bill would require funds remaining in the Education Subaccount after the 2017-18 fiscal year to continue to be available in future years for loans to local education agencies, as defined, and community college districts, as specified. This bill would require the funds deposited annually in the Job Creation Fund and remaining in the fund, as prescribed, to be allocated, to the extent consistent with the act, to local education agencies by the Superintendent of Public Instruction, as specified, and to community college districts by the Chancellor of the California Community Colleges at his or her discretion. This bill would require the Energy Commission to maintain information on the local education agencies and community college districts that receive grants, loans, or other financial assistance pursuant to these provisions.

end insert begin insert

This bill would require the Energy Commission, in consultation with the Superintendent of Public Instruction, the Chancellor of the California Community Colleges, and the Public Utilities Commission, to establish specified guidelines. This bill would require the Energy Commission to adopt these guidelines at a publicly noticed meeting and provide an opportunity for public comment, as prescribed. This bill would require the Superintendent of Public Instruction and the Chancellor of the California Community Colleges to require that funds be paid back if they are not used in accordance with prescribed provisions.

end insert begin insert

(3) The California Clean Energy Jobs Act creates the Citizens Oversight Board with specified responsibilities relative to the review of expenditures from the Job Creation Fund, including the submission of an evaluation to the Legislature.

end insert begin insert

This bill would require an entity, as a condition of receiving funds from the Job Creation Fund, not sooner than one year but no later than 15 months after the entity completes its first eligible project with a grant, loan, or other assistance from the Job Creation Fund, to submit a report of its project expenditures to the Citizens Oversight Board, as specified. This bill would require the California Workforce Investment Board, in consultation with the Energy Commission, to utilize reports filed with the Citizens Oversight Board to quantify total employment affiliated with funded projects, as well as to estimate new trainee, apprentice, or full-time jobs resulting from Job Creation Fund activity, and would require the California Workforce Investment Board to prepare a report with this information annually and to submit it to the Citizens Oversight Board. This bill would require the Citizens Oversight Board to report specified information it receives to the Legislature annually as part of its responsibility to submit an evaluation to the Legislature and to post this report on a publicly accessible Internet Web site.

end insert begin insert

(4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

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

end insert begin insert

(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.

end insert begin insert

(f) 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.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(i) 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.

end insert begin insert

(j) It is further the intent of the Legislature to quickly increase
the number of jobs in California supporting energy retrofit
improvements, and to accomplish this, to direct the State Energy
Resources Conservation and Development Commission to proceed
quickly to develop necessary guidelines and procedures for project
identification and investment.

end insert 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 1,000
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

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Chapter 5 (commencing with Section 26225) is added
to Division 16.3 of the end insert begin insert Public Resources Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 5. end insert Proposition 39 Implementation

 

begin insert 26225. end insert   

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

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

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

(c) “Local education agency” or “LEA” means a school district,
county office of education, charter school, or state special school.

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

begin insert 26227. end insert   

(a) (1) For the 2013-14 fiscal year, twenty-eight
million dollars ($28,000,000) shall be transferred from the Job
Creation Fund to the Education Subaccount, which is hereby
created in the State Energy Conservation Assistance Account
created pursuant to Section 25416. The moneys in the Education
Subaccount are appropriated to the Energy Commission for the
purpose of low-interest and no-interest revolving loans and loan
loss reserves for eligible projects and technical assistance.

(2) For the 2013-14 fiscal year, funds in the Education
Subaccount shall be available for local education agencies and
community college districts. If a local education agency or
community college district has an eligible project, the amount of
the funding resources gap that is to be considered a reasonable
loan value from the Education Subaccount is the project cost less
the amount of any grant awarded pursuant to Section 26233 and
less any state, federal, or local incentives. A local education agency
or community college district may need to meet additional credit
or other financial qualifying criteria applicable pursuant to the
Energy Conservation Assistance Act of 1979 (Chapter 5.2
(commencing with Section 25410) of Division 15). The Energy
Commission shall facilitate a local education agency or community
college district’s participation in both the Job Creation Fund and
Energy Conservation Assistance Account programs through
coordinated information, documentation, and review processes
regarding the project and the borrowing entity.

(b) For the 2014-15 through 2017-18 fiscal years, inclusive,
the amount transferred from the Job Creation Fund to the Energy
Conservation Assistance Account shall be determined in the annual
budget.

(c) Funds remaining in the Education Subaccount after the
2017-18 fiscal year shall continue to be available in future years
for loans to local education agencies and community college
districts pursuant to this section.

begin insert 26230. end insert   

(a) The sum of three million dollars ($3,000,000) is
hereby appropriated from the Job Creation Fund to the California
Workforce Investment Board to develop and implement a
competitive grant program for eligible community-based and other
training workforce organizations preparing disadvantaged youth
or veterans for employment.

(b) In developing and implementing the program, the board
shall do all of the following:

(1) In consultation with the Energy Commission and the Public
Utilities Commission, develop a competitive process to award
grants to eligible entities and evaluate and select applications for
grants.

(2) Administer grants to eligible entities for the purposes of
work experience and job training on energy efficiency and clean
energy projects.

(c) In awarding the grants, the California Workforce Investment
Board shall give priority to projects that include the following
elements:

(1) Specific skills gained through hands-on application related
to energy efficiency and clean energy that is embedded in, or linked
to, a broader occupational training program.

(2) Actual work experience gained through hands-on clean
energy project implementation.

(3) Industry-recognized credentials and certificates.

(4) Training that demonstrates a high probability of placement
of trainees into career track jobs.

(5) A partnership with state-approved apprenticeship programs
that promote industry-recognized skills and credentials through
work experience and lead to placement in a state-approved
apprenticeship programs.

begin insert 26233. end insert   

(a)  Commencing with the 2013-14 fiscal year and
through the 2017-2018 fiscal year, inclusive, the funds deposited
annually in the Job Creation Fund and remaining after the transfer
pursuant to Section 26227 and the appropriation pursuant to
Section 26230 shall be allocated, to the extent consistent with this
division, as follows:

(1) Eighty-nine percent of the funds shall be available to local
educational agencies and allocated by the Superintendent of Public
Instruction pursuant to subdivision (b).

(2) Eleven percent of the funds shall be available to community
college districts and allocated by the Chancellor of the California
Community Colleges at his or her discretion.

(b) The Superintendent of Public Instruction shall allocate the
funds provided in paragraph (1) of subdivision (a) as follows:

(1) Eighty-five percent on the basis of average daily attendance
reported as of the second principal apportionment for the prior
fiscal year.

(A) For every local education agency with average daily
attendance as reported pursuant to this subdivision of 100 or less,
the amount awarded shall be fifteen thousand dollars ($15,000).

(B) For every local education agency with average daily
attendance as reported pursuant to this subdivision in excess of
100, but 1,000 or less, the amount awarded shall be either that
local educational agency’s proportional award on the basis of
average daily attendance or fifty thousand dollars ($50,000),
whichever amount is larger.

(C) For every local education agency with average daily
attendance as reported pursuant to this subdivision in excess of
1,000, but less than 2,000, the amount awarded shall be either
that local education agency’s proportional award on the basis of
average daily attendance or one hundred thousand dollars
($100,000), whichever amount is larger.

(D) For every local education agency with average daily
attendance as reported pursuant to this subdivision of 2,000 or
more, the amount awarded shall be the local education agency’s
proportional award on the basis of average daily attendance.

(2) Fifteen percent on the basis of students eligible for free and
reduced-price meals in the prior year.

(3) For every local education agency that receives over one
million dollars ($1,000,000) pursuant to this subdivision, not less
than 50 percent of the funds shall be used for projects larger than
two hundred fifty thousand dollars ($250,000) that achieve
substantial energy efficiency, clean energy, and jobs benefits.

(c) A local education agency subject to subparagraph (A) or
(B) of paragraph (1) of subdivision (b) may submit a written
request to the Superintendent of Public Instruction, by August 1
of each year, to receive in the current year its funding allocation
for both the current year and the following year, both of which
would be based on the average daily attendance used in the current
year for determining funding pursuant to the applicable
subparagraph. A local education agency requesting funding
pursuant to this subdivision shall not receive a funding allocation
in the year following the request.

(d) A local education agency shall encumber funds received
pursuant to this section by June 30, 2018.

begin insert 26235. end insert   

(a) The Energy Commission, in consultation with the
Superintendent of Public Instruction, the Chancellor of the
California Community Colleges, and the Public Utilities
Commission, shall establish guidelines for the following:

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

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

(3) Project evaluation, including the following:

(A) Benchmarks or energy rating systems to select best
candidate facilities.

(B) Use of energy surveys or audits to inform project
opportunities, costs, and savings.

(C) Sequencing of facility improvements.

(D) Methodologies for cost-effectiveness determination.

(4) To 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
funding provided pursuant to this section. The Energy Commission
shall develop a simple preinstallation verification form that
includes project description, estimated energy savings, expected
number of jobs created, current energy usage, and costs. The
Energy Commission may develop benchmarking and other
innovative facility evaluation systems in coordination with the
University of California.

(5) Achievement of the maximum feasible energy efficiency or
clean energy benefits, as well as job creation benefits for
Californians, resulting from projects implemented pursuant to this
chapter.

(6) Where applicable, ensuring LEAs assist classified school
employees with training and information to better understand how
they can support and maximize the achievement of energy savings
envisioned by the funded project.

(b) The Energy Commission shall allow the use of data analytics
of energy usage data, where possible, in the energy auditing,
evaluation, inventorying, measuring, and verification of projects.
To ensure quality of results, data analytics providers shall have
received prior technical validation by the Energy Commission, a
local utility, or the Public Utilities Commission.

(c) A community college district or LEA shall not use a sole
source process to award funds pursuant to this chapter. A
community college district or LEA may use the best value criteria
as defined in paragraph (1) of subdivision (c) of Section 20133 of
the Public Contract Code to award funds pursuant to this chapter.

(d) The Energy Commission shall adopt the guidelines in
accordance with this section at a publicly noticed meeting and
provide an opportunity for public comment. The Energy
Commission shall provide written public notice of a meeting at
least 30 days prior to the meeting.

(1) For substantive revision of the guidelines, the Energy
Commission shall provide written notice of a meeting at least 15
days prior to the meeting at which the revision is to be considered
or adopted.

(2) The adoption or revision of guidelines pursuant to this
subdivision is exempt from Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(e) Each participating LEA shall prioritize the eligible projects
within its jurisdiction taking into consideration, as applicable, at
least the following factors:

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

(2) The proportion of pupils eligible for funds under Title I of
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301
et seq.) at particular schoolsites.

(3) Whether the facilities have been recently modernized.

(4) The facilities’ hours of operation, including whether the
facilities are operated on a year-round basis.

(5) The school’s energy intensity as determined from an energy
rating or benchmark system such as the United States
Environmental Protection Agency’s Energy Star system or other
acceptable benchmarking approach that may be available from
local utilities, the American Society for Heating, Refrigerating,
and Air-Conditioning Engineers, Inc., or reputable building
analysis software as is appropriate to the size, budget, and
expertise available to the school.

(6) The estimated financial return of each project’s investment
over the expected lifecycle of the project, in terms of net present
value and return on investment.

(7) Each project’s potential for energy demand reduction.

(8) The anticipated health and safety improvements or other
nonenergy benefits for each project.

(9) The individual or collective project’s ability to facilitate
matriculation of local residents into state-certified apprenticeship
programs.

(10) The expected number of trainees and direct full-time
employees likely to be engaged for each LEA’s annual funding
commitments based upon a formula to be made available by the
Energy Commission or California Workforce Investment Board.
The formula shall be stated as labor-intensities per total project
dollar expended, and may differentiate by type of improvement,
equipment, or building trade involved.

(11) The ability of the project to enhance workforce development
and employment opportunities, utilize members of the California
Conservation Corps, certified local conservation corps, Youth
Build, veterans, Green Partnership Academies, nonprofit
organizations, high school career technical academies, high school
regional occupational programs, or state-certified apprenticeship
programs, or to accommodate learning opportunities for school
pupils or at-risk youth in the community.

(f) The Superintendent of Public Instruction shall not distribute
funds to an LEA unless the LEA has submitted to the Energy
Commission, and the Energy Commission has approved, an
expenditure plan that outlines the energy projects to be funded.
An LEA shall utilize a simple form expenditure plan developed by
the Energy Commission. The Energy Commission shall promptly
review the plan to ensure that it meets the criteria specified in this
section and in the guidelines developed by the Energy Commission.
A portion of the funds may be distributed to an LEA upon request
for energy audits and other plan development activities prior to
submission of the plan.

(g) 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.

(h) Any limitation of funds awarded to individual projects
pursuant to this chapter shall not preclude or otherwise limit the
total amount of funds that a recipient LEA or community college
may otherwise be eligible to receive as a result of identifying
multiple projects that meet the overall objectives and criteria
described in this chapter.

(i) For a school facility that is not publicly owned, a school
district receiving moneys pursuant to this chapter for a project for
that facility shall require that the school repay to the state all
moneys received from the Job Creation Fund for the project if the
school voluntarily vacates the facility within five years of project
completion. The facility owner shall repay to the state all moneys
received from the Job Creation Fund for the project if the school
was forced to vacate the facility within the life of the project
completion. All benefits of these public funds should be received
by the school utilizing the facility.

(j) 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 insert 26237. end insert   

The Energy Commission shall maintain information
on the local education agencies and community college districts
that receive grants, loans, or other financial assistance under this
chapter. The publicly available and searchable database shall
include relevant metrics, to be determined by the Energy
Commission, for electric, gas, and cost savings of the projects.

begin insert 26240. end insert   

(a) In order to later quantify the costs and benefits of
funded projects, an entity that receives funds from the Job Creation
Fund shall authorize its local electric and gas utilities to provide
12 months of past and ongoing usage and billing records at the
school facility site level to the Energy Commission.

(b) As a condition of receiving funds from the Job Creation
Fund, not sooner than one year but no later than 15 months after
an entity completes its first eligible project with a grant, loan, or
other assistance from the Job Creation Fund, the entity shall submit
a report of its project expenditures to the Citizens Oversight Board
created pursuant to Chapter 3 (commencing with Section 26210).
To the extent practical, this report shall also contain information
on any of the following:

(1) The total final gross project cost before deducting any
incentives or other grants and the percentage of total project cost
derived from the Job Creation Fund.

(2) The estimated amount of energy saved, accompanied by
specified energy consumption and utility bill cost data for the
individual facility where the project is located, in a format to be
specified by the Energy Commission.

(3) The name plate rating of new clean energy generation
installed.

(4) The number of trainees.

(5) The number of direct full-time equivalent employees and the
average number of months or years of utilization of each of these
employees.

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

(7) The entity’s energy intensity before and after project
completion, as determined from an energy rating or benchmark
system, to be determined by the Energy Commission, such as the
United States Environmental Protection Agency’s Energy Star
system or other acceptable benchmarking approach that may be
available from local utilities, the American Society for Heating,
Refrigerating, and Air-Conditioning Engineers, Inc., or a publicly
available building analysis software as is appropriate to the size,
budget, and expertise available to the school.

(c) If an LEA completes more than one project, the required
information for a second and any subsequent project shall be
submitted no later than the first full quarter following project
completion.

(d) To minimize the calculation burden on LEAs, the Energy
Commission shall develop a method to utilize the data submitted
by each recipient LEA in its project reports, such as utility
consumption data, building operating characteristics, and other
information, to calculate for each project, LEA, or the state as a
whole the actual or estimated energy and cost savings. This method
shall include a means to combine gas and electric savings into a
combined cost of saved energy factor and to report on other
economic and investment performance metrics. The Energy
Commission shall prepare an annual summary of the expenditures,
energy savings, effective cost of saved energy or return on
investment, and employment effects of each year’s completed
projects, and shall provide this report to the Citizens Oversight
Board.

(e) The California Workforce Investment Board, in consultation
with the Energy Commission, shall utilize the reports filed with
the Citizens Oversight Board to quantify total employment affiliated
with funded projects, as well as to estimate new trainee, apprentice,
or full-time jobs resulting from Job Creation Fund activity. The
California Workforce Investment Board shall prepare a report
with this information annually and submit it to the Citizens
Oversight Board.

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

(g) Funding provided to LEAs pursuant to this chapter is subject
to annual audits required by Section 41020 of the Education Code.
Funding provided to community college districts pursuant to this
chapter is subject to annual audits required by Section 84040 of
the Education Code.

(h) (1) The Superintendent of Public Instruction shall require
local education agencies to pay back funds if they are not used in
accordance with state statute or regulations, if a project is torn
down or remodeled, or if the property is deemed to be surplus and
sold prior to the payback of the project.

(2) The Chancellor of the California Community Colleges shall
require a community college to pay back funds if they are not used
in accordance with state statute or regulations, if a project is torn
down or remodeled, or if the property is deemed to be surplus and
sold prior to the payback of the project.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 25415 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25415.  

(a) Each eligible institution to which an allocation has
been made under this chapter shall repay the principal amount of
the allocation, plus interest, in not more than begin delete 30 end delete begin insert 40 end insert equal
semiannual payments, as determined by the commission. Loan
repayments shall be made in accordance with a schedule established
by the commission. The repayment period may not exceed the life
of the equipment, as determined by the commission or the lease
term of the building in which the energy conservation measures
will be installed.

(b) Notwithstanding any other begin delete provision of end delete law, the commission
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate schedule,
periodically set interest rates on the loans based on surveys of
existing financial markets and begin delete at rates not less than 1 percent per
annum. end delete begin insert may authorize no-interest loans. end insert

(c) The governing body of each eligible institution shall annually
budget an amount at least sufficient to make the semiannual
payments required in this section. The amount shall not be raised
by the levy of additional taxes but shall instead be obtained by a
savings in energy costs or other sources.

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2013.

end delete