BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 64|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 64
Author: Corbett (D)
Amended: 5/28/13
Vote: 21
SENATE ENERGY, UTILITIES & COMMUNIC. COMMITTEE : 8-2, 4/16/13
AYES: Padilla, Cannella, Corbett, De León, DeSaulnier, Hill,
Wolk, Wright
NOES: Fuller, Knight
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/23/13
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
SUBJECT : Proposition 39: implementation
SOURCE : Author
DIGEST : This bill directs the California Energy Commission
(CEC) to develop and administer a competitive financial
assistance program consistent with Proposition 39 (Prop. 39) for
energy efficiency and clean energy onsite generation projects,
as specified; and provides that eligible facilities for the
competitive financial assistance program include, but are not
limited to, hospitals and wastewater treatment facilities and
facilities in public school districts, as provided.
Senate Floor Amendments of 5/28/13 eliminate the restriction on
the funding of K-12 projects and specifically allow onsite
CONTINUED
SB 64
Page
2
generation projects on K-12 school sites be funded.
ANALYSIS :
Existing law:
1. Establishes the Clean Energy Job Creation Fund (Creation
Fund) to provide financial assistance to projects that create
jobs in California improving energy efficiency and expanding
clean energy generation. Up to $550 million is available for
fiscal years 2013-14, 2014-15, 2015-16, 2016-17, and 2017-18,
the source of which is increased state corporate tax
revenues. (Prop. 39)
2. Requires CEC to develop and administer a series of programs
to provide cost-effective energy efficiency and conservation
contracts, grants, and loans to eligible entities. (Public
Resources Code Sections 25410-25474)
This bill:
1. Directs the CEC to develop and adopt guidelines for, and
develop and administer, a competitive financial assistance
program for energy efficiency and clean energy onsite
generation projects that are consistent with Prop. 39.
2. Specifies that eligible facilities may include, but are not
limited to, hospitals, wastewater treatment facilities, and
facilities in public school districts, as specified.
3. Provides that the guidelines shall do all of the following:
A. Establish audit standards and procedures.
B. Ensure that the projects receiving financial assistance
are consistent with the state's loading order, as
described in the Energy Plan II jointly adopted by the
State Energy Resources Conservation and Development
Commission and the Public Utilities Commission (PUC).
C. Ensure that the projects are reliable and feasible with
total energy savings benefits exceeding project costs.
D. Establish energy savings measurement and verification
CONTINUED
SB 64
Page
3
standards.
E. If the project is for clean energy onsite generation,
require that the energy cost savings over 75% of the
expected life of the project will exceed the initial
investment.
F. Give priority to projects that have the highest energy
savings relative to the amount of public moneys used to
finance the project.
Background
Prop. 39 . This ballot initiative was approved by voters at the
November 2012 election. Titled the California Clean Energy Jobs
Act of 2012, it requires most multistate businesses to determine
their California taxable income using a single sales factor
method. (Previously, state law allowed such businesses to pick
one of two different methods to determine the amount of taxable
income associated with California and taxable by the state.)
This change has the effect of increasing state corporate tax
revenue.
For a five-year period (2013-14 through 2017-18), Prop. 39
requires that half of the annual revenue raised from the
measure, up to $550 million, be transferred to a new Creation
Fund to support projects intended to improve energy efficiency
and expand the use of alternative energy. "Moneys in the fund
shall be available for appropriation for the purpose of funding
projects that create jobs in California improving energy
efficiency and expanding clean energy generation." Prop. 39
specifically requires that the funds maximize energy and job
benefits by supporting:
Energy efficiency retrofits and alternative energy projects
in public schools, colleges, universities, and other public
facilities;
Financial and technical assistance for energy retrofits; and
Job training and workforce development programs related to
energy efficiency and alternative energy.
Prop. 39 also requires that funded programs be coordinated with
CONTINUED
SB 64
Page
4
the CEC and PUC in order to avoid duplication and leverage
existing energy efficiency and alternative energy efforts. In
addition, Prop. 39 states that the funding is to be appropriated
only to agencies with established expertise in managing energy
projects and programs.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unspecified amounts from the Creation Fund (special fund)
for financial assistance for energy efficiency or clean
energy technology installation.
Unknown costs to the CEC from the Creation Fund for the
development and administration of programs.
SUPPORT : (Verified 5/28/13)
Bloom Energy
California State Association of Counties
CleanTECH San Diego
Cities of Benicia, Blue Lake, Ceres, Cerritos, Chowchilla,
Cloverdale, El Centro, Fairfield, Goleta, Livingston, Lodi,
Santa Barbara, South San Francisco, Thousand Oaks, and Ventura
DBL Investors
Environmental Defense Fund
ETAGen, Inc.
Jons Manville - A Berkshire Hathaway Company
League of California Cities
Sonoma County Board of Supervisors
SunPower Corporation
Sunrun, Inc.
ARGUMENTS IN SUPPORT : According to the Environmental Defense
Fund:
A key piece of our organization's mission is to advance state
initiatives dedicated to developing a robust clean energy
economy in California, and we were proud to be part of the
broad coalition that worked to pass Proposition 39. The
investments from Prop 39's passage will stimulate the
fast-growing clean energy economy, create thousands of
CONTINUED
SB 64
Page
5
in-state jobs, and produce immediate benefits to air quality
and public health for Californians.
As the fastest growing part of the state economy, clean energy
and energy efficiency are creating jobs at home in
California-jobs that have proven to be more reliable and
resilient than other sectors in tough economic times. By
investing in energy efficiency and clean energy generation in
the public sector, SB 64 will not only create jobs and reduce
greenhouse gas emissions, but will also cut energy bills for
local and state governments-saving municipal dollars and
ensuring dollars expended are not wasted on unnecessary energy
use.
JG:k 5/29/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED