Amended in Senate May 28, 2013

Amended in Senate May 7, 2013

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, Hueso, Jackson, Lara, Leno, Lieu, Liu, Negrete McLeod, Padilla, Pavley, Price, Roth, Rubio, begin insert Torres, end insert Vargas, Wolk, and Yee)

(Coauthors: Assembly Members begin insert Hagman and end insert Skinner begin delete and Torres end delete )

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 begin insert as Proposition 39 end insert 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 begin delete consultation end delete begin insert coordination end insert with the State Energy Resources Conservation and Development Commission, begin delete the Public Utilities Commission, and the State Department of Education, to establish a school district assistance program to distribute grants, on a competitive basis, end delete begin insert to develop the Clean Energy Employment and Student Advancement Program to award grants, based on the average daily attendance, to a school district, weighted as specified, end insert for energy efficiency upgrade projects pursuant to the California Clean Energy Jobs Act. The bill would require the begin delete office, upon the approval of the State Allocation Board, to award a school district grants for energy efficiency upgrade projects meeting specified conditions end delete begin insert commission to develop criteria for project development, approval, and energy savings reporting end insert . The bill would require the begin delete office to develop a methodology to give priority points to applications meeting specified criteria end delete begin insert commission to establish a technical assistance grant program to assist in the assessment, development, and implementation of energy upgrade projects for school districts and charter schools without access to a utility-sponsored technical assistance program. The bill would require the commission, in coordination with the University of California energy research centers, to develop innovative facility evaluation systems to assist school districts with facility evaluations, benchmarking, scoping, and investigation. The bill would authorize the commission, in consultation with the California Conservation Corps and the certified community conservation corps, to provide preaudit, audit, and postinstallation verification services to assist school districts. The bill would require the commission to develop guidelines for a financing program for projects for which grants are inappropriate or not needed for implementation. The bill would require the commission to develop a database to quantify the costs and benefits of funded projects. The bill would require a school district or a charter school facility receiving moneys from the Clean Energy Job Creation Fund to repay those moneys under specified conditions. For the 2013-14 fiscal year, the bill would provide that moneys from the fund, upon appropriation by the Legislature, would be available to fund energy efficiency projects that are on the Emergency Repair Program unfunded approval list as of January 1, 2013 end insert .

begin delete

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.

end delete begin insert

This bill would specify the bidding requirements for contracts for projects that are funded, in whole or in part, by moneys from the Clean Energy Job Creation Fund and would require contractors for those contracts to meet specified requirements. The bill would require, with specified exceptions, the Department of Industrial Relations to monitor and enforce applicable prevailing wage requirements and would authorize the Director of Industrial Relations to charge the contracting agency for its reasonable and directly related costs incurred.

end insert

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.  

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

begin delete

(1)

end delete

begin insert (a) end insert  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.

begin delete

(2)

end delete

begin insert (b) end insert  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 that
work 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):

begin delete

(A)

end delete

begin insert (1) end insert  Maximize job creation.

begin delete

(B)

end delete

begin insert (2) end insert  Shrink our carbon footprint.

begin delete

(C)

end delete

begin insert (3) end insert  Minimize bureaucratic costs.

begin delete

(D)

end delete

begin insert (4) end insert  Create full transparency.

begin delete

(E)

end delete

begin insert (5) end insert  Demand rigorous accountability.

begin delete

(F)

end delete

begin insert (6) end insert  Create measurable results.

begin delete

(3)

end delete

begin insert (c) end insert  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.

begin delete

(4)

end delete

begin insert (d) end insert  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.

begin delete

(5)

end delete

begin insert (e) end insert  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.

begin delete

(6)

end delete

begin insert (f) end insert  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.

begin delete

(7)

end delete

begin insert (g) end insert  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.

begin delete

(b)

end delete

begin insert (h) end insert  It is the intent of the Legislature that:

(1)  begin delete First priority end delete begin insert Priority end insert 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.

begin insert

(2) To achieve the job creation and energy savings goals
outlined in the California Clean Energy Jobs Act, first year funds
should be distributed to schools with identified energy savings
projects on the unfunded Emergency Repair List resulting from
the settlement reached in Williams v. State of California (Case
Number CGC-00-312236 of the Superior Court of San Francisco)
and should allow retrofit projects to begin immediately while the
state defines the competitive grant process that will be used to
distribute funds in the subsequent years.

end insert begin delete

(2)

end delete

begin insert (3) end insert  Energy efficiency upgrade projects begin insert and deployment of onsite
clean energy installations end insert should also provide short-term benefits,
including the creation of jobs that pay prevailing wages in
communities around the state, and stimulate local economies.

begin delete

(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.

end delete

begin delete

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).

end delete

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

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

 

begin insert

Article begin insert 1. end insert   begin insert General Provision and Definitions end insert

end insert

 

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) “Best value” means a value determined by evaluation of
proposals with reference to specified criteria objectively applied,
including, but not limited to, price, quality of technical proposals,
qualifications of key personnel, and other criteria deemed
appropriate by a contracting agency awarding a contract for a
project funded, in whole or in part, by a grant awarded pursuant
to this chapter.

end insert begin delete

(a)

end delete

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

begin insert

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

end insert begin delete

(b)

end delete

begin insert (d) end insert begin insert   end insert begin insert (1) end insert  “Energy efficiency upgrade project” begin insert or “project end insert begin insert ” end insert 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:

begin delete

(1)

end delete

begin insert (A) end insert  Ventilation.

begin delete

(2)

end delete

begin insert (B) end insert  Lighting and other system controls.

begin delete

(3)

end delete

begin insert (C) end insert  Air infiltration.

begin delete

(4)

end delete

begin insert (D) end insert  Water use.

begin delete

(5)

end delete

begin insert (E) end insert  Windows and doors (fenestration).

begin delete

(6)

end delete

begin insert (F) end insert  Heating and cooling (HVAC).

begin delete

(7)

end delete

begin insert (G) end insert  Electrical system.

begin delete

(8)

end delete

begin insert (H) end insert  Insulation.

begin insert

(I) Roof system, such as insulation and energy efficient rooftop
surfaces.

end insert begin insert

(J) Energy monitoring and management system.

end insert begin insert

(K) Green infrastructure projects that reduce energy demand,
such as tree planting.

end insert begin insert

(2) “Project” includes energy efficiency retrofit, clean energy
installation, demand management, and other energy-related
projects.

end insert begin insert

(e) “ESCO” means an energy service or energy savings
company.

end insert begin insert

(f) “Loading order” means the state’s loading order described
in the Energy Plan II jointly adopted by the commission and the
Public Utilities Commission.

end insert begin delete

(c)

end delete

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

begin delete

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

end delete

begin delete

26232.  

(a) The office shall, in consultation with the
commission, the Public Utilities Commission, and the State
Department of Education, 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.

(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:

(1) Energy audit standards and procedures.

(2) Measurement and verification standards.

(3) Reporting standards.

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

(5) Project priorities relative to energy standards.

(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 delete begin insert

begin insert 26232. end insert   

For 2013-14 fiscal year, the office shall, to the extent
moneys are available, fund all energy efficiency projects that have
been previously approved by the State Allocation Board under the
Emergency Repair Program pursuant to Article 1.5 (commencing
with Section 17592.70) of Chapter 5 of Part 10.5 of Division 1 of
Title 1 of the Education Code, and placed on the Emergency Repair
Program unfunded approval list as of January 1, 2013. In order
to later quantify the costs and benefits of funded projects, the
school district 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 commission.

end insert begin insert

begin insert 26232.5. end insert   

(a) The Legislature finds and declares that the funds
generated pursuant to this division are public funds for the
purposes of the Government Code, Labor Code, and Public
Contract Code.

(b) A project funded, in whole or in part, pursuant to this
division constitutes a public works project.

end insert begin insert

begin insert 26233. end insert   

(a) For a project funded, in whole or in part, pursuant
to this division, the governmental entity receiving the funding shall
ensure full compliance with Section 20111.6 of the Public Contract
Code and shall additionally require contractors and subcontractors
for the project to demonstrate a sustained commitment,
contribution, and investment in all of the following:

(1) A state-approved local training program for sustaining the
stability and longevity of a properly trained workforce for the 21st
century construction industry, including, but not limited to, Title
24 energy efficiency curriculum, hands-on training, safety training,
and continuing education programs.

(2) A federally recognized multiemployer health care program
for their workers or, alternatively, health care coverage products
that are approved by the Department of Managed Care or the
Department of Insurance that provide essential health benefits
coverage required by the federal Patient Protection and Affordable
Care Act (Public Law 111-148) and California law.

(3) A federally recognized multiemployer pension program or
federally approved worker pension programs or plans.

(b) (1) Except as provided in subdivision (c), the Department
of Industrial Relations shall monitor and enforce compliance with
applicable prevailing wage requirements for a public works
project, within the meaning of subdivision (b) of Section 1720 of
the Labor Code, that is financed, in whole or in part, pursuant to
this division. Monitoring and enforcement by the department shall
be conducted pursuant to subdivision (g) of Section 1771.5 of the
Labor Code and regulations adopted pursuant to that provision.

(2) The Director of Industrial Relations shall charge each
contracting agency for the reasonable and directly related costs
of monitoring and enforcing compliance with the prevailing wage
requirements on each project.

(A) The reasonable and directly related costs of monitoring and
enforcing compliance with the prevailing wage requirements on
a project incurred by the Department of Industrial Relations in
accordance with this section are payable by the contracting agency
as a cost of construction and shall be determined pursuant to
paragraph (1) of subdivision (h) of Section 1771.5 of Labor Code.

(B) All amounts collected by the Department of Industrial
Relations for its services pursuant to this section shall be deposited
in the State Public Works Enforcement Fund created by Section
1771.3 of the Labor Code.

(c) Subdivision (b) does not apply if the government entity
receiving funding pursuant to this division does either of the
following:

(1) If the contracting agency had initiated prior to January 1,
2012, a labor compliance program approved by the Department
of Industrial Relations for some or all of its public works projects
and had not contracted with a third party to conduct that program,
and requests and receives approval from the department to
continue to operate its existing labor compliance program for its
public works projects financed, in whole or in part, pursuant to
this division, in place of the department monitoring and enforcing
compliance on projects pursuant to subdivision (a).

(2) If the contracting agency has entered into a collective
bargaining agreement that binds all of the contractors performing
work on the project and that includes a mechanism for resolving
disputes about the payment of wages.

(d) In awarding contracts for projects funded pursuant to this
division, school districts and charter schools shall utilize the best
value competitive bid process that allows local contractors to bid
for these projects. Projects funded pursuant to this division shall
not be awarded using the procurement methods specified in either
Section 4217.12 of the Government Code or Section 17406 of the
Education Code.

end insert begin insert

begin insert 26233.1. end insert   

To provide work opportunities and a career path for
the next generation of energy efficiency tradespeople, all
contractors and subcontractors bidding on contracts to perform
work for a project funded, in whole or in part, pursuant to this
division shall have an agreement with a registered apprenticeship
program, approved by the California Apprenticeship Council, that
provides specific training for the work to be performed, and that
has graduated a minimum of 50 percent of the apprentices of the
program in the preceding five years. The agreement shall specify
that the contractor agrees to train apprentices to the standards of
the registered apprenticeship program.

end insert begin insert

begin insert 26233.2. end insert   

In awarding a contract for a project that is funded,
in whole or in part, pursuant to this division, the contracting
agency shall do all of the following:

(a) Award contracts utilizing the best value bid method.

(b) (1) Include factors including, but not limited to, price,
life-cycle costs, net energy savings, safety record, and other criteria
deemed appropriate by the contracting agency.

(2) For purposes of this subdivision, a bidder’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less,
and its average total recordable injury or illness rate and average
lost work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category, or if
the bidder is a party to an alternative dispute resolution system
as provided for in Section 3201.5 of the Labor Code.

(c) (1) Prepare a request for proposal setting forth the scope
of the project that may include, but is not limited to, the size, type,
and desired design character of the buildings and site, performance
specifications covering the quality of materials, equipment, and
workmanship, preliminary plans or building layouts, or any other
information deemed necessary to describe adequately the
contracting agency’s needs.

(2) The request for proposal shall do all of the following:

(A) Identify the basic scope and needs of the project or contract,
the expected cost range, and other information deemed necessary
by the contracting agency to inform interested parties of the
contracting opportunity.

(B) Invite interested parties to submit competitive sealed
proposals in the manner prescribed by the contracting agency.

(C) Include a section identifying and describing the following:

(i) All significant factors and subfactors that the contracting
agency reasonably expects to consider in evaluating proposals,
including cost or price and all nonprice related factors and
subfactors.

(ii) The methodology and rating or weighting scheme that will
be used by the contracting agency in evaluating competitive
proposals and specifically whether proposals will be rated
according to numeric or qualitative values.

(iii) The relative importance or weight assigned to each of the
factors identified in the request for proposal.

(iv) As an alternative to clause (iii), the contracting agency
shall specifically disclose whether all evaluation factors other
than cost or price, when combined, are any of the following:

(I) Significantly more important than cost or price.

(II) Approximately equal in importance to cost or price.

(III) Significantly less important than cost or price.

(v) If the contracting agency wishes to reserve the right to hold
discussions or negotiations with responsive bidders, it shall so
specify in the request for proposal and shall publish separately or
incorporate into the request for proposal applicable rules and
procedures to be observed by the contracting agency to ensure
that any discussions or negotiations are conducted in a fair and
impartial manner.

(d) Establish a procedure to prequalify contractors, including
general contractors and all electrical, mechanical, and plumbing
contractors, regardless of whether they bid as subcontractors or
as prime contractors, using a standard questionnaire that includes,
at a minimum, the issues covered by the standardized questionnaire
and model guidelines for rating bidders developed by the
Department of Industrial Relations.

end insert begin insert

begin insert 26233.3. end insert   

Notwithstanding any provision of the Public Contract
Code, upon issuance of a contract award for a project funded, in
whole or in part, pursuant to this division, the contracting agency
shall publicly announce its award, identifying the contractor to
whom the award is made, the winning contractor’s price proposal,
and its overall combined rating on the request for proposal
evaluation factors. The notice of award shall also include the
agency’s ranking in relation to all other responsive bidders and
their respective price proposals and a summary of the contracting
agency’s rationale for the contract award.

end insert

 

begin insert

Article begin insert 2. end insert   begin insert Elementary and Postsecondary Education end insert

end insert

 

begin insert

begin insert 26235 end insert begin insert . end insert   

end insert begin insert

(a) The office, in coordination with the commission,
shall develop and administer the Clean Energy Employment and
Student Advancement Program to award grants to school districts
and charter school facilities from moneys appropriated by the
Legislature from the Job Creation Fund for the purposes of
subdivision (a) of Section 26205.

end insert begin insert

(b) A school district or a charter school may submit to the office
an application for a grant pursuant to this article. The application
shall include a complete energy audit for the facility for which the
application is submitted.

end insert begin insert

(c) A school district shall be eligible to compete for funding up
to a maximum allocation level for each county based on the
average daily attendance formula, weighted toward the school
district’s eligibility under Title I of the federal Elementary and
Secondary Education Act of 1965 (20 U.S.C. Sec. 6301 et seq.).

end insert begin insert

(d) Upon approval of an application, the office shall submit to
the State Allocation Board the application for review pursuant to
Chapter 12.5 (commencing with Section 17070.10) of Part 10 of
Division 1 of Title 1 of the Education Code. The office shall award
the grant to the school district upon the approval of the State
Allocation Board.

end insert begin insert

(e) Prior to funding allocation for onsite clean energy
installation, a school district or charter school shall demonstrate
that energy cost savings over 75 percent of the expected life of the
onsite clean energy installation is greater than the total costs of
the installation.

end insert

begin delete

26233.  

(a) 

end delete

begin insert

begin insert 26236. end insert   

end insert

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

begin delete

(1)

end delete

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

begin delete

(2)

end delete

begin insert ( end insert begin insert b) end insert  Implement outreach and marketing strategies for the
program.

begin delete

(3)

end delete

begin insert ( end insert begin insert c) end insert  Analyze participation to inform and modify outreach and
marketing efforts.

begin delete

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

end delete

begin delete

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 conditions:

(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 and ranking applications for grants that
meet the conditions pursuant to Section 26234, the office shall
develop a methodology to assign priority points to an 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.

(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.

(e) 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.

(f) 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.

end delete begin insert

begin insert 26237. end insert   

(a) On or before ____, 2014, the commission shall
develop guidelines and criteria for project development, approval,
and energy savings reporting, consistent with Section 26206, that
include all of the following:

(1) Energy audit standards and procedures.

(2) Evaluation, measurement, and verification standards.

(3) Inventory and reporting standards.

(4) Project approval criteria.

(5) Project eligibility and ranking based on the loading order.

(b) (1) The commission shall adopt the guidelines at a publicly
noticed meeting and provide an opportunity for the public to
comment. The commission shall provide a written public notice of
the meeting at least 30 days prior to the meeting.

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

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

(c) In developing the criteria for project eligibility and ranking,
the commission, in coordination with the office, shall base the
prioritization of projects on all of the following:

(1) Eligibility of the school district in which the project is
located under Title I of the federal Elementary and Secondary
Education Act of 1965 (20 U.S.C. Sec. 6301 et seq.), determined
as a percentage of pupils eligible for Title I funding.

(2) The amount of energy savings resulting from the project,
such as measurements of kilowatts per hour saved.

(3) The ability of the school district or charter school to enter
into contracts implementing the project within 90 days of grant
award.

(4) The ability of the school district or charter school to leverage
moneys or resources, including grants or financing from local,
private, and other public and ratepayer funds, including funds
from participating in a utility energy program; or to partner with
two or more entities, including, but not limited to, other school
districts, nonprofit organizations, local government agencies,
ESCOs, and others; or both leveraging and partnership to
maximize investments and benefits to the public.

(5) The geographic locale of the school site in reference to the
ranking of its Zip Code pursuant to Section 39711 of the Health
and Safety Code, with the most impacted receiving the highest
priority and the least impacted receiving the lowest priority.

(6) The ability of the project to enhance workforce development
and employment opportunities, utilize members of the California
Conservation Corps, certified local conservation Corps,
YouthBuild, California community college districts, Green
Partnership Academies, Division of Apprenticeship Standards,
nonprofit organizations, state certified apprenticeship programs,
targeted hire provisions, labor management partnerships, high
school career technical academies, and high school regional
occupational programs, if available, or accommodate learning
opportunities for school pupils or at-risk youth in the community.

end insert begin insert

begin insert 26238. end insert   

The commission shall, in consultation with the
University of California energy research centers, develop
innovative facility evaluation systems to assist school districts and
charter schools with facility evaluations, benchmarking, scoping,
and investigation, including computer modeling, the use of the
United States Environmental Protection Agency Portfolio Manager,
and onsite surveys.

end insert begin insert

begin insert 26239. end insert   

The commission, in consultation with the California
Conservation Corps and certified community conservation corps,
may provide preaudit, audit, and postinstallation verification
services to assist school districts and charter schools.

end insert begin insert

begin insert 26239.5. end insert   

The commission may allow the use of data analytics
of energy usage data, where possible, in the energy auditing,
evaluation, inventorying, measuring, and verification of projects.

end insert begin insert

begin insert 26240. end insert   

(a) The commission, upon appropriation by the
Legislature, shall establish a technical assistance grant program
to assist with the assessment, development, and implementation
of projects for school districts and charter school without access
to utility-sponsored energy efficiency technical assistance.

(b) The commission shall establish guidelines for the technical
assistance programs, including eligible activities to be funded.
The commission shall, at a minimum, allow for the following
eligible activities:

(1) Needs assessment, benchmarking, scoping, and investigation,
including support for energy audits when other programs do not
exist.

(2) Project development.

(3) Bid preparation.

(4) Assistance with leveraging other public and private funds.

(5) Permit and citing support.

(6) Preparation of postproject energy measurement and
verification reports.

(c) For the purposes of assisting school districts and charter
schools, the commission may also provide grants for technical
assistance pursuant to this section to any of the following entities:

(1) Local governments.

(2) Renewable energy networks.

(3) County offices of education.

(4) Nonprofit organizations dedicated to provide energy project
development and implementation assistance.

(d) For appropriate school districts, the commission may
complement the requirements of this section through the Bright
Schools Program.

end insert begin insert

begin insert 26241. end insert   

(a) For projects for which grants are inappropriate
or not needed for implementation, the commission shall develop
a project financing program in the form of very low interest rate
loans. The commission shall use the program developed pursuant
to Chapter 5.2 (commencing with Section 25410) of Division 15
to administer the financing program pursuant to this section.

(b) The commission shall develop guidelines and criteria for
project development, approval, and energy savings reporting,
consistent with Section 26206, that include all of the following:

(1) Energy audit standards and procedures.

(2) Evaluation, measurement, and verification standards.

(3) Inventory and reporting standards.

(4) Project approval criteria.

(5) Project eligibility and ranking based on the loading order.

(c) The commission shall prioritize loans to schools with higher
eligibility under Title I of the federal Elementary and Secondary
Education Act of 1965 (20 U.S.C. Sec 6301 et seq.).

(d) The commission shall ensure the financing program
incentives participation by ESCOs, utilities, local governments,
and other entities in project development.

end insert begin insert

begin insert 26242. end insert   

Upon appropriation by the Legislature, the commission
shall, in coordination with the Treasurer’s office, develop
additional financing tools that incentive the participation of private
capital investments in projects for schools with kindergarten or
grades 1 to 12, inclusive.

end insert begin insert

begin insert 26243. end insert   

(a) A school district receiving moneys pursuant to this
article for a project for a facility that is torn down for remodel,
or the property is deemed to be surplus and sold within 10 years
of project completion shall repay to the state all moneys received
from the Job Creation Fund for the project.

(b) For a charter school facility that is not publicly owned, a
school district receiving moneys pursuant to this article for a
project for that facility shall repay to the state all moneys received
from the Job Creation Fund for the project if the charter school
vacates the facility within five years of project completion.

(c) To quantify costs and benefits of projects, the commission
shall develop a database and methodology as follows:

(1) In accordance with a schedule established by the
commission, the school district or charter school will authorize
its local electric or gas utilities to provide to the commission the
12 months of past and ongoing usage and billing records at the
school facility site level.

(2) The commission shall compile the information provided by
the utilities into a database that will assist the commission in
quantifying the costs and benefits of implementing the projects
funded, in whole or in part, pursuant to this chapter. The
commission may, upon appropriation by the Legislature, expend
moneys from the Job Creation Fund for the purposes of developing
and maintaining the database.

(3) The commission shall compute the costs of energy saved as
a result of implementing the projects funded, in whole or in part,
pursuant to this chapter. The costs and savings shall be calculated
in a manner established by the commission.

end insert