BILL ANALYSIS                                                                                                                                                                                                    


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                                 UNFINISHED BUSINESS

          Bill No:  SB 73
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  6/13/13
          Vote:     21


           ASSEMBLY FLOOR  :  Not available

           SUBJECT  :    Budget Trailer Bill:  Proposition 39

           SOURCE  :     Author

           DIGEST  :    This bill makes various changes to implement  
          Proposition 39, the California Clean Energy Jobs Act.

           Assembly Amendments  delete Senate version of the bill expressing  
          the intent of the Legislature to enact statutory changes  
          relating to the Budget Act of 2012 and instead makes various  
          changes to implement Proposition 39, the California Clean Energy  
          Jobs Act.

           ANALYSIS  :    As part of the 2013-14 budget package, this bill  
          makes various statutory changes to implement the Budget Act.

          This bill includes statutory changes to implement following key  
          changes in the budget bill:

           Allocation of Energy Efficiency Funds Appropriated in the  
          Budget  .  This bill specifies the allocation of Proposition 39  


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          revenues available for energy efficiency projects for K-12 local  
          educational agencies (LEAs) and California Community College  
          (CCC) districts, as follows:  

           1. K-12 Education Grants  

              A.    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  
                students eligible for free- and reduced-price meals. 

              B.    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  
                         $50,000 for LEAs with ADA of more than 100 to  
                   1,000 students. 
                         $100,000 for LEAs with ADA of more than 1,000  
                   but less than 2,000 students.   

              A.    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.  

              B.    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.    

              C.    Provides guidance to K-12 LEAs, as produced by the  
                California Energy Commission (CEC), and makes K-12 LEAs  
                subject to front-end verification and back-end public  
                tracking and reporting.  

          2.  Community College Grants  

             Allocates 11% of Proposition 39 revenues to K-14 education,  
             which equates to $47 million in 2013-14, to the CCC  



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             Chancellor's Office on behalf of CCC districts.  Funds are  
             distributed at the discretion of the Chancellor's Office.  

          3.  Other Energy Efficiency Program Provisions  

               A.    Guidelines  .  The CEC, in consultation with the CDE,  
                Chancellor's Office for CCC and the Public Utilities  
                Commission, is required to develop guidelines for  
                contracts, including estimates for energy benefits, cost  
                assumptions for energy savings, benchmarks, energy surveys  
                and audits, and cost-effectiveness determination.  

               B.    Sole Source Contracting  .  Prohibits sole source  
                contracting and sets parameters for grants and contracting  
                within the scope of Proposition 39 for both K-12 LEAs and  
                CCC districts.

          4.  Appropriation for Energy Revolving Loan Program  

             Appropriates $28 million in Proposition 39 revenues to the  
             State Energy Conservation Assistance Account at the CEC 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 CCC districts. [Of the $28 million  
             appropriated in this measure, the 2013-14 Budget identifies  
             $25 million (89%) for K-12 LEAs and $3 million (11%) for  
             CCCs.]  In 2014-15 through 2017-18, the amount available  
             shall be determined through the annual budget process.  

          5.  Appropriation for Job Training   

             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  

           FISCAL EFFECT :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No



                                                                      SB 73

          PQ:nl  6/13/13   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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