BILL ANALYSIS �
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THIRD READING
Bill No: AB 78
Author: Assembly Budget Committee
Amended: 6/13/13 in Senate
Vote: 21
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Trailer Bill: Proposition 39
SOURCE : Author
DIGEST : This bill makes various changes to implement
Proposition 39, the California Clean Energy Jobs Act.
ANALYSIS : As part of the 2013-14 Budget package, this bill
makes various statutory changes to implement the Budget Act.
This bill includes statutory changes to implement following key
changes in the budget bill:
Allocation of Energy Efficiency Funds Appropriated in the
Budget . This measure specifies the allocation of Proposition 39
revenues available for energy efficiency projects for K-12 local
educational agencies (LEAs) and California Community College
(CCC) districts, as follows:
1.K-12 Education Grants
A. Allocates 89% of Proposition 39 funds for K-14
education, which equates to $381 million in 2013-14, to the
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California Department of Education (CDE) for K-12 LEAs,
including school districts, charter schools and county
offices of education, and State Special Schools. In
allocating LEA funds, funds are weighted as follows - 85%
is distributed on the basis of student average daily
attendance (ADA) and 15% is distributed on the basis of
students eligible for free- and reduced-price meals.
B. Minimum grants are established for small K-12 LEAs
within the following student ADA thresholds:
$15,000 for LEAs with ADA of 100 students or less.
$50,000 for LEAs with ADA of more than 100 to 1,000
students.
$100,000 for LEAs with ADA of more than 1,000 but
less than 2,000 students.
A. LEAs with 1,000 students or less can receive an advance
on future allocations allowing them to bundle two years of
funding in 2013-14 and subsequent years.
B. LEAs receiving more than $1 million in energy funds
shall expend 50% of the funding on projects larger than
$250,000 that achieve substantial energy efficiency, clean
energy and jobs benefits.
C. Provides guidance to K-12 LEAs, as produced by the
California Energy Commission (CEC), and makes K-12 LEAs
subject to front-end verification and back-end public
tracking and reporting.
2. Community College Grants
Allocates 11% of Proposition 39 revenues to K-14 education,
which equates to $47 million in 2013-14, to the CCC
Chancellor's Office on behalf of CCC districts. Funds are
distributed at the discretion of the Chancellor's Office.
3. Other Energy Efficiency Program Provisions
A. Guidelines . The CEC, in consultation with the CDE,
Chancellor's Office for CCC and the Public Utilities
Commission, is required to develop guidelines for
contracts, including estimates for energy benefits, cost
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assumptions for energy savings, benchmarks, energy surveys
and audits, and cost-effectiveness determination.
B. Sole Source Contracting . Prohibits sole source
contracting and sets parameters for grants and contracting
within the scope of Proposition 39 for both K-12 LEAs and
CCC districts.
4. Appropriation for Energy Revolving Loan Program
Appropriates $28 million in Proposition 39 revenues to the
State Energy Conservation Assistance Account at the CEC in
2013-14. These funds are appropriated for the purpose of
establishing a revolving loan program to provide low-interest
and no-interest revolving loans, and loan loss reserves for
eligible energy projects and technical assistance. In
2013-14, these funds shall be available to fund eligible
projects for K-12 LEAs and CCC districts. [Of the $28 million
appropriated in this measure, the 2013-14 Budget identifies
$25 million (89%) for K-12 LEAs and $3 million (11%) for
CCCs.] In 2014-15 through 2017-18, the amount available
shall be determined through the annual budget process.
5. Appropriation for Job Training
Appropriates $3 million in Proposition 39 revenues to the
California Workforce Investment Board to develop and
implement a competitive grant program for eligible
community-based organizations and other training workforce
organizations preparing disadvantaged youth or veterans for
employment.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
PQ:nl 6/14/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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