BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2227
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
           AB 2227 (Quirk)
          As Amended  June 30, 2014
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 28, 2014)  |SENATE: |35-0 |(August 11,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    B., P. & C.P.  
           
          SUMMARY  :  Establishes procedures and guidance for the Citizens  
          Oversight Board (COB) created by the California Clean Energy  
          Jobs Act (Proposition 39 of 2012).  

           The Senate amendments  : 

          1)Repeal an unnecessary provision requiring that COB agenda's be  
            posted in accordance with specified provisions of the  
            Bagely-Keene Open Meeting Act. 

          2)Require that COB comply with, and be subject to, the  
            California Public Records Act.  

           EXISTING LAW  :  

          1)Pursuant to Proposition 39, which was approved by the voters  
            at the November 6, 2012, statewide general election:

             a)   Establishes the COB, composed of nine members appointed  
               by the State Treasurer, the State Controller, and the  
               Attorney General, as specified.  The COB is tasked with: 

               i)     Annually reviewing all expenditures from the Clean  
                 Energy Job Creation Fund (Fund); 

               ii)    Commissioning and reviewing an annual independent  
                 audit of the Fund and of a selection of projects  
                 completed to assess the effectiveness of the  
                 expenditures; 

               iii)   Publishing a complete accounting of all expenditures  
                 annually; and, 









                                                                  AB 2227
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               iv)    Submitting an evaluation of the program to the  
                 Legislature that identifies any changes needed to meet  
                 the directives.

             b)   Dedicates $550 million or 50% of the annual increase in  
               revenues from the SSF, whichever is less, annually for five  
               fiscal years (2013-14 through 2017-18) for projects that  
               create energy efficiency and clean energy jobs in  
               California, upon appropriation by the Legislature.  The  
               funding may include:

               i)     Energy efficiency and clean energy installations at  
                 public schools, universities and colleges, and other  
                 public buildings; 

               ii)    Job training and workforce development on clean  
                 energy and energy efficiency programs; and,

               iii)   Financing and technical assistance to fund Property  
                 Assessed Clean Energy (PACE) programs.

          2)Pursuant to SB 73 (Budget Committee), Chapter 29, Statutes of  
            2013: 

             a)   Specifies the allocation of Proposition 39 funding  
               available for energy efficiency projects at K-12 schools  
               and community college districts.  

             b)   Requires the CEC, in consultation with the California  
               Department of Education, the Chancellor of California  
               Community College districts, and the Public Utilities  
               Commission, to develop guidelines for contracts, as  
               specified.  

             c)   Appropriates $28 million from Proposition 39 funds to  
               the State Energy Conservation Assistance Account for energy  
               efficiency loans.  
              
              d)   Appropriates $3 million from Proposition 39 funds to the  
               California Workforce Investment Board to develop and  
               implement a competitive grant program for organizations  
               that prepare disadvantaged youth or veterans for  
               employment.   

          FISCAL EFFECT  :  According to the Senate Appropriations  








                                                                  AB 2227
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          Committee, pursuant to Senate Rule 28.8, negligible state costs.  
           

           COMMENTS  :  The COB was established by voters in Proposition 39  
          and consists of nine members.  Three members are to be appointed  
          each by the State Controller, the State Treasurer, and the  
          Attorney General.  To date, the Controller and Treasurer have  
          appointed members.  The purpose of the COB is to review Fund  
          expenditures, commission and review annual independent audits of  
          the Fund and selected projects, publish an accounting of annual  
          expenditures, and submit a program evaluation to the  
          Legislature. 

          While Proposition 39 created the COB and its purpose, it was  
          largely silent on the structure, procedures, and other details  
          relating to COB operations.  

          On December 19, 2013, CEC published Proposition 39: California  
          Clean Energy Jobs Act -2013 Program Implementation Guidelines in  
          accordance with SB 73.   The guidelines define how the state  
          plans to implement Proposition 39, provide information on the  
          types of awards and proposal requirements, explain screening and  
          evaluation criteria, describe the standards that will be used to  
          evaluate project proposals, and outline the award process.  

          According to the author, "this legislation provides all the  
          necessary detail for the board to accomplish its mission."  This  
          bill establishes general governance requirements for the  
          operations of the COB.  


           Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 


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