Amended in Senate April 24, 2013

Amended in Senate March 21, 2013

Senate Bill No. 39

Introduced by Senators De León and Steinberg

(Coauthors: Senators Beall, Block, Calderon, Corbett, DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, begin insert Hueso, end insert Jackson, Lara, Leno, Lieu, Liu, Negrete McLeod, Padilla, Pavley, Price, Roth, Rubio, Vargas, Wolk, and Yee)

(Coauthors: Assembly Members Skinner and Torres)

December 5, 2012

An act to add Chapter 5 (commencing with Section 26230) to Division 16.3 of the Public Resources Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 39, as amended, De León. Energy: school facilities: energy efficiency upgrade projects.

The California Clean Energy Jobs Act, an initiative measure enacted by voters at the November 6, 2012, statewide general election, establishes the Clean Energy Job Creation Fund and requires moneys in the fund to be available for appropriation during specified fiscal years for, among other things, the purposes of funding energy efficiency projects in school facilities.

This bill would enact the Clean Energy Employment and Student Advancement Act of 2013 and would require the Office of Public School Construction, in consultation with the State Energy Resources Conservation and Development Commission begin delete and end delete begin insert , end insert the Public Utilities Commission begin insert , and the State Department of Education end insert , to establish a school district assistance program to distribute grants, on a competitive basis, for energy efficiency upgrade projects pursuant to the California Clean Energy Jobs Act. The bill would require the office, upon the approval of the State Allocation Board, to award a school district grants for energy efficiency upgrade projects meeting specified begin delete criteria end delete begin insert conditions end insert . The bill would require the office to begin insert develop a methodology to end insert give priority begin insert points to end insert applications meeting specified criteria. The bill would require begin delete the office, in consultation with end delete the State Energy Resources Conservation and Development Commission begin insert , in consultation with the office of the Treasurer end insert , to begin delete establish a program to evaluate the potential to fund energy efficiency and clean energy projects for schools, including colleges and universities, through the use of matching funds, low-interest loans, or other financing methods end delete begin insert develop guidelines for a financing program that uses revolving loan funds, reduced interest loans, or other financial assistance for energy efficiency and clean energy projects at the campuses of the California Community Colleges, the University of California, and the California State University end insert .

This bill would state the intent of the Legislature to appropriate moneys to the Office of Public School Construction from the fund for the purposes of awarding energy efficiency grants to the most disadvantaged schools in need of modernization for the purposes of energy efficiency upgrades.

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

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

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) The people of the State of California voiced their strong
support for the California Clean Energy Jobs Act by enacting
Proposition 39 at the November 6, 2012, statewide general election.
The voters closed an egregious corporate tax loophole that only
benefited out-of-state companies at the expense of expanded
employment in our state.

(2) It is the duty of the Legislature to put these dollars to work
in a manner that voters can see and experience the benefit of begin insert . end insert
Proposition 39 enumerated the following key principles in guiding
the expenditure of the revenues raised through the California Clean
Energy Jobs Act (Division 16.3 (commencing with Section 26200)
of the Public Resources Code):

(A) Maximize job creation.

(B) Shrink our carbon footprint.

(C) Minimize bureaucratic costs.

(D) Create full transparency.

(E) Demand rigorous accountability.

(F) Create measurable results.

(3) Since the recession began in late 2007, California has lost
nearly 1.4 million jobs, including 400,000 in the construction
industry alone. Investing in energy efficiency will maximize job
creation and will help the state regain a sense of economic security
and sustainability at a time when unemployment remains high.
The state can further stimulate its economy by putting the industry
segment back to work that is most in need--the construction trades.

(4) Studies show the continuing high cost of energy and utilities
due to inefficient lighting, insulation, heating, ventilation, and air
conditioning systems, plumbing, windows, and irrigation systems
that take local money away from educational programs. For
example, the Los Angeles Unified School District spends
$105,000,000 annually on energy. Energy efficiency improvements
for public schools will reduce long-term energy costs and the
savings can be directed to the classroom.

(5) Substandard physical environments are strongly associated
with truancy and other behavior problems in pupils. Lower pupil
attendance leads to lower scores on standardized tests in English
language arts and mathematics. Schools with better building
conditions have up to 14 percent lower pupil suspension rates.
Improving a school’s health and safety standards can lead to a
36-point increase in California Academic Performance Index
scores.

(6) Several studies have determined that children suffer
significant health consequences from excessive heat, inadequate
heating, ventilation, and air conditioning systems, mold and other
biological hazards, pest infestations, lead and other toxic hazards,
and overcrowding beyond the stated capacity of the school
structure. Research repeatedly shows the detrimental impact to the
health of pupils due to poor indoor air quality in classrooms.
Increasing energy efficiency will reduce air pollution that causes
asthma and lung disease.

(7) Economically disadvantaged school communities are often
the same areas that suffer most from high unemployment and
destructive or unlawful conduct by youth. The program funded by
revenues generated by the California Clean Energy Jobs Act will
encourage community participation in, and a greater sense of
responsibility toward, educational, environmental, and fiscal
benefits of modernizing facilities, which will enhance community
pride and sustain neighborhood vitality.

(b) It is the intent of the Legislature that:

(1) First priority for funds made available through the California
Clean Energy Jobs Act should be to award competitive grants
statewide to economically disadvantaged schools to provide
operational cost savings in schools maintaining kindergarten or
any of grades 1 to 12, inclusive, and create a healthy indoor
environment for pupils and staff and to offer technical assistance
to all applicants and potential applicants for grant preparation to
encourage full participation in the grant program.

(2) Energy efficiency upgrade projects should also provide
short-term benefits, including the creation of jobs that pay
prevailing wages in communities around the state, and stimulate
local economies.

(3) In addition to grants for economically disadvantaged schools,
to the extent funds are available, funds could be allocated to finance
or provide matching funds for cost-effective energy efficiency
upgrades and clean energy projects at schools maintaining
kindergarten or any of grades 1 to 12, inclusive, and for projects
at community colleges or at the campuses of the University of
California or the California State University.

(4) Workforce training programs, including the California
Conservation Corps, certified community conservation corps,
YouthBuild, and other existing programs to train and employ
disadvantaged youth, veterans, and others on energy efficiency
and clean energy projects could also be funded.

SEC. 2.  

It is the intent of the Legislature to make moneys
available to the Office of Public School Construction, upon
appropriation, from the Clean Energy Job Creation Fund to award
energy efficiency upgrade grants to the most disadvantaged schools
in need of modernization for the purposes of energy efficiency
upgrades pursuant to the California Clean Energy Jobs Act
(Division 16.3 (commencing with Section 26200) of the Public
Resources Code).

SEC. 3.  

Chapter 5 (commencing with Section 26230) is added
to Division 16.3 of the Public Resources Code, to read:

 

Chapter  5. Clean Energy Employment and Student
Advancement Act of 2013

 

26230.  

This chapter shall be known, and may be cited, as the
Clean Energy Employment and Student Advancement Act of 2013.

26231.  

As used in this chapter, the following terms shall have
the following meanings:

begin insert

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

end insert begin delete

(a)

end delete

begin insert (b) end insert  “Energy efficiency upgrade project” means a school facility
project that reduces energy consumption and operational costs
through means that include, but are not limited to, improvements
to one or a combination of the following:

(1) Ventilation.

(2) Lighting and other system controls.

(3) Air infiltration.

(4) Water use.

(5) Windows and doors (fenestration).

(6) Heating and cooling (HVAC).

(7) Electrical system.

(8) Insulation.

begin delete

(b)

end delete

begin insert (c) end insert  “Office” means the Office of Public School Construction.

begin delete

(c)

end delete

begin insert (d) end insert  “School district” means a school district or a county office
of education.

26232.  

begin insert (a) end insert begin insert   end insert The office shall, in consultation with the begin delete State
Energy Resources Conservation and Development Commission
and end delete begin insert commission, end insert the Public Utilities Commission begin insert , and the State
Department of Education end insert , establish a school district assistance
program to distribute grants, on a competitive basis, prioritizing
economically disadvantaged school communities for energy
efficiency upgrade projects that offer the highest energy efficiency
savings, pursuant to this division.

begin insert

(b) The commission shall develop criteria for project
development, ranking, approval, and energy savings reporting,
and shall establish guidelines and criteria for all of the following:

end insert begin insert

(1) Energy audit standards and procedures.

end insert begin insert

(2) Measurement and verification standards.

end insert begin insert

(3) Reporting standards.

end insert begin insert

(4) Project approval criteria relating to energy efficiency
upgrade projects.

end insert begin insert

(5) Project priorities relative to energy standards.

end insert begin insert

(c) The office shall administer, process, and distribute funds to
local educational agencies that meet the conditions pursuant to
Section 26234, rank priority for these funds on the basis of criteria
pursuant to Section 26235, and perform expenditure audits, as
specified in subdivision (d) of Section 26234.

end insert

26233.  

(a) The begin delete office end delete begin insert State Department of Education, in
consultation with the office, end insert shall begin insert do all of the of the following: end insert
begin delete offer end delete

begin insert (1) end insert begin insert   end insert begin insert Offer end insert technical assistance to all applicants and potential
applicants for grant preparation to encourage full participation in
the grant program.

begin insert

(2) Implement outreach and marketing strategies for the
program.

end insert begin insert

(3) Analyze participation to inform and modify outreach and
marketing efforts.

end insert

(b) The office shall use existing benchmarking tools to determine
present average energy consumption for a school facility by size
and type.

26234.  

Upon approval by the State Allocation Board, the office
shall award to a school district a grant pursuant to this chapter only
for an energy efficiency upgrade project that meets all of the
following begin delete criteria end delete begin insert conditions end insert :

(a) The proposed project meets the qualifications of an energy
efficiency upgrade project.

(b) The school district complies with the required labor
compliance and contractor qualification standards.

(c) The amount of the grant applied for, together with any
matching contribution, will meet all of the costs of implementing
the energy efficiency upgrade project.

(d) The school district allows the office to audit all expenditures
made with grant funds.

(e) The school district agrees to track and report to the office
the number of jobs created as a result of the energy efficiency
upgrade project.

(f) The school district reports to the office the operational cost
savings resulting from the energy efficiency upgrade project, both
at the district level, in aggregate, and school facility site level.

26235.  

In evaluating begin insert and ranking end insert applications for grants that
meet the begin delete requirements of end delete begin insert conditions pursuant to end insert Section 26234,
the office shall begin insert develop a methodology to end insert assign begin delete higher end delete priority
begin insert points end insert to begin delete any end delete begin insert an end insert application that meets all of the following criteria:

(a) The energy efficiency upgrade project is located at a school
facility with an above average energy consumption, as determined
by the benchmark pursuant to subdivision (b) of Section 26233.

(b) The energy efficiency upgrade project is located in an
economically disadvantaged school community, based on the
percentage of pupils eligible for the federal free and reduced-price
lunch program.

(c) The energy efficiency project is located in an area with an
above average unemployment rate as compared to the statewide
unemployment rate.

begin delete

(d) The school district has actively involved pupils and classified
school employees at the school facility site in the planning and
design of the energy efficiency upgrade project.

end delete begin delete

(e) The energy efficiency upgrade project includes a plan to
fund and train classified school employees to service and maintain
the projects.

end delete begin insert

(d) Pupils and classified school employees receive training and
information to better understand how they can support and
maximize the achievement of energy efficiency savings envisioned
by the energy efficiency upgrade projects.

end insert begin delete

(f)

end delete

begin insert (e) end insert  The energy efficiency upgrade project will enhance
workforce development and employment opportunities, utilize
members of the California Conservation Corps or certified local
conservation corps, if available, or accommodate learning
opportunities for school pupils or at-risk youth in the community.

begin delete

(g)

end delete

begin insert (f) end insert  The energy efficiency upgrade project is a joint partnership
between two or more agencies, including, but not limited to, other
school districts, nonprofit organizations, and local government
agencies to maximize the investment and benefit to the public.

begin delete

26236.  

(a) In addition to the program established pursuant to
Section 26232, the office, in consultation with the State Energy
Resources Conservation and Development Commission, shall
develop a financing program by evaluating the potential to fund
projects, consistent with the requirements of Chapter 2
(commencing with Section 26205) for schools maintaining
kindergarten or any of grades 1 to 12, inclusive, community
colleges, and campuses of the University of California and the
California State University through the use of matching funds,
low-interest loans, or other financing methods.

(b) Upon appropriation by the Legislature for the purposes of
implementing this section, the office may establish standards
consistent with this division for the implementation of a financing
program developed pursuant to subdivision (a).

end delete begin insert

begin insert 26236. end insert   

The commission, in coordination with the office of the
Treasurer, shall develop guidelines for a financing program that
uses revolving loan funds, reduced interest loans, or other financial
assistance for energy efficiency and clean energy projects at the
campuses of the California Community Colleges, the University
of California, and the California State University.

end insert