BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 73
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          SB 73 (Budget and Fiscal Review Committee)
          As Amended  June 13, 2013
          Majority vote.  Budget Bill Appropriation Takes Effect  

           SENATE VOTE  :Vote not relevant  
          SUMMARY  :  Contains necessary statutory and technical changes to  
          implement Proposition 39, the California Clean Energy Jobs Act.   
          Specifically,  this bill  :

          1)Specifies the allocation Proposition 39 revenues that are  
            appropriated in the Budget Act for energy efficiency projects  
            for K-12 local educational agencies (LEAs) and community  
            college districts.

          2)Allocates 89% of Proposition 39 funds for K-14 education,  
            which equates to $381 million in 2013-14, to the 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 student eligible for free- and reduced-price  

          3)Provides that 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; and $100,000 for LEAs  
            with ADA of more than 1,000 but less than 2,000 students.   

          4)Provides that 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.  

          5)Provides that 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.    

          6)Provides guidance to K-12 LEAs, as produced by the California  
            Energy Commission (CEC), and makes K-12 LEAs subject to  


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            front-end verification and back-end public tracking and  

          7)Allocates 11% of Proposition 39 revenues to K-14 education,  
            which equates to $47 million in 2013-14, to the Community  
            College Chancellor's Office on behalf of community college  
            districts.  Funds are distributed at the discretion of the  
            Chancellor's Office.  

          8)Requires the CEC, in consultation with the Department of  
            Education, Chancellor's Office for California Community  
            Colleges (CCC) and the Public Utilities Commission, to develop  
            guidelines for contracts, including estimates for energy  
            benefits, cost assumptions for energy savings, benchmarks,  
            energy surveys and audits, and cost-effectiveness  

          9)Prohibits sole source contracting and sets parameters for  
            grants and contracting within the scope of Proposition 39 for  
            both K-12 LEAs and community college districts.

          10)Appropriates $28 million in Proposition 39 revenues to the  
            State Energy Conservation Assistance Account at the California  
            Energy Commission 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 community college  
            districts.  In 2014-15 through 2017-18, the amount available  
            shall be determined through the annual budget process.  Funds  
            remaining in the Education Subaccount after 2017-18 shall be  
            available for loans to K-12 LEAs and community college  

          11)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.  

          12)Contains an appropriation allowing the bill to take effect  
            immediately upon enactment.


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          COMMENTS  :  This bill provides the necessary statutory references  
          to enact the 2013-14 Budget related to Proposition 39.

           Analysis Prepared by  :    Misty Feusahrens and Gabrielle Meindl /  
          BUDGET / (916) 319-2099

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