BILL NUMBER: AB 1186	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2012
	AMENDED IN SENATE  AUGUST 24, 2012
	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 6, 2012
	AMENDED IN SENATE  MAY 22, 2012
	AMENDED IN ASSEMBLY  MARCH 25, 2011

INTRODUCED BY   Assembly Member Skinner
   (Principal coauthor: Senator Pavley)

                        FEBRUARY 18, 2011

   An act to add Article 13 (commencing with Section 16429.40) to
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code,
relating to greenhouse gases  , and making an appropriation
therefor  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1186, as amended, Skinner. School  energy efficiency:
  Energy Efficiency and Greenhouse Gas Reduction Act:
 grants.
   Existing law creates the Greenhouse Gas Reduction Fund as a
special fund in the State Treasury and requires any moneys collected
by the State Air Resources Board under the California Global Warming
Solutions Act of 2006 from the auction or sale of allowances pursuant
to a market-based compliance mechanism to be deposited into the fund
and available for appropriation by the Legislature. Existing law
requires a state agency, prior to expending any moneys appropriated
to it by the Legislature from the fund, to prepare a record
consisting of a description of proposed expenditures and how they
will further the regulatory purposes of the California Global Warming
Solutions Act of 2006, how they will achieve specified greenhouse
gas emissions reductions, how the agency considered other objectives
of that act, and how the agency will document expenditure results.
   This bill would enact the School Energy Efficiency and Greenhouse
Gas Reduction Act. The bill would create the School Energy Efficiency
and Greenhouse Gas Reduction Fund as a special fund in the State
Treasury. The bill would  require that 20% of specified
revenues deposited during the 2012-13 fiscal year in the Greenhouse
Gas Reduction Fund be transferred into the School Energy Efficiency
and Greenhouse Gas Reduction Fund. This bill would continuously
appropriate the funds   make moneys  in the School
Energy Efficiency and Greenhouse Gas Reduction Fund  available
 to the State Energy Resources Conservation and Development
Commission  , upon appropriation by the Legislature,  for
the purposes of  a grant program for eligible K-12 schools
for energy efficiency improvements that achieve greenhouse gas
reductions   implementing the program. The bill states
the intent of the Legislature that the commission administer the fund
and implement the program in coordination with the Superintendent of
Public Instruction to provide grants to eligible institutions for
building retrofits to   reduce emissions of greenhouse gases
and reduce the demand for energy. The bill would require the
commission to award grants through the Bright Schools Program, as
specified, and require the commission, in consultation with the
Superintendent, to establish a system to prioritize eligible
institutions for grants  .
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) Over 70 percent of the state's K-12 public school
classrooms are over 25 years old.
   (b) Schools account for approximately 12 percent of all commercial
energy consumption, representing not only a significant cost to the
state's public schools, but also demonstrating that schools have a
sizeable greenhouse gas emissions footprint.
   (c) Many school districts and local governments know there are
opportunities to reduce both the economic cost and carbon footprints
of schools by having more energy-efficient buildings, operations, and
maintenance. These financial savings could provide schools with the
flexibility to pay for other upgrades that enhance the learning
environment.
   (d) It is in the best interest of the state to quickly reduce
energy consumption from schools, especially through building
retrofits that achieve the deep levels of energy efficiency
improvement, such as those called for in the Long Term Energy
Efficiency Strategic Plan adopted by the Public Utilities Commission.

  SEC. 2.  Article 13 (commencing with Section 16429.40) is added to
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code,
to read:

      Article 13.  School Energy Efficiency and Greenhouse Gas
Reduction


   16429.40.  This article shall be known and may be cited as the
School Energy Efficiency and Greenhouse Gas Reduction Act.
   16429.41.  As used in this article:
   (a) "Commission" means the State Energy Resources Conservation and
Development Commission.
   (b) "Eligible institution" means a public school providing
instruction in kindergarten or grades 1 to 12, inclusive.
   (c) "Fund" means the School Energy Efficiency and Greenhouse Gas
Reduction Fund established pursuant to Section 16429.42.
   (d) "Superintendent" means the Superintendent of Public
Instruction.
   16429.42.  (a) The School Energy Efficiency and Greenhouse Gas
Reduction Fund is hereby created as a special fund in the State
Treasury.  Notwithstanding Section 13340, moneys in the fund
are continuously appropriated, without regard to fiscal years, to the
commission for the purposes of this article.  
   (b) Of the revenues deposited during the 2012-13 fiscal year in
the Greenhouse Gas Reduction Fund, created by Section 16428.8, which
are not used or allocated by the Director of Finance to make
commensurate reductions to General Fund expenditure authority
pursuant to Section 15.11 of the Budget Act of 2012, 20 percent of
that amount shall be transferred into the fund.  
   (c) Of the moneys deposited into the fund pursuant to subdivision
(b), the commission may expend up to 5 percent of those moneys for
administrative costs in implementing this article.  

   (d) The commission shall award the remainder of the moneys in the
fund as grants to eligible institutions for greenhouse gas reductions
achieved through energy efficiency improvements. 
   (e) The commission shall comply with Section 16428.9 in the award
of funds.  
   (b) Moneys in the fund shall be available to the commission, upon
appropriation by the Legislature, for the implementation of this
article. 
   16429.43.  (a) It is the intent of the Legislature that the
commission administer the fund and implement this article in
coordination with the Superintendent to provide grants to eligible
institutions for building retrofits that  maximize energy
savings and greenhouse gas reductions  reduce emissions
of greenhouse gases and reduce the demand for energy  .
   (b) The commission shall award  the moneys described in
subdivision (d) of Section 16429.42 as grants though  
grants pursuant to this article through  the commission's Bright
Schools Program, subject to the following:
   (1) The grants made pursuant to this article through the Bright
Schools Program shall be awarded only to eligible institutions, as
defined in  subdivision (b) of  Section 16429.41.
   (2) The commission shall ensure that adequate energy audit,
measurement, and verification procedures are employed to ensure that
energy savings and greenhouse gas emissions reductions occur as a
result of any grants made pursuant to this article.
   (3) The commission shall use a net present value analysis or
life-cycle cost analysis when determining eligible measures for
energy savings and greenhouse gas reductions.
   (c) (1) The commission shall adopt any regulations or guidelines
necessary to implement this article. Notwithstanding any other law,
regulations pursuant to this section may be adopted as emergency
regulations pursuant to Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3.
   (2) For the purposes of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3, including Section 11349.6, the Office
of Administrative Law shall consider the adoption of the regulations
pursuant to this subdivision to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.
   (d) The commission, to the extent possible, shall utilize existing
resources and expertise in implementing this article.
   (e) The commission, in consultation with the Superintendent, shall
establish a system to prioritize  schools  
eligible institutions  for grants through this article.
Prioritization shall take into consideration circumstances that shall
include, but not be limited to, the age of the school facilities,
the proportion of students receiving free and reduced-price meals,
whether the facilities have been recently modernized, whether the
facilities are operated as a year-round school, the potential for
demand reduction, and the school's score from an energy rating system
such as the United States Environmental Protection Agency's Energy
Star system.
   (f) The commission shall determine, based on the annual energy
savings reported by the institutions pursuant to subdivision (h), the
total greenhouse gas reductions achieved pursuant to this article.
   (g) This article does not affect the eligibility of schools
awarded grants to receive other incentives available from federal,
state, and local government, or from public utilities or other
sources, and to leverage the grant with those incentives.
   (h) (1) Any eligible institution may submit an application to the
commission for a grant from the fund for greenhouse gas reductions
achieved through energy efficiency improvements.
   (2) Each year, on a schedule established by the commission, each
eligible institution that receives a grant pursuant to this article
shall report the amount of energy saved to the commission. Each
eligible institution shall compute the cost of energy saved as a
result of implementing projects funded by the grant. The cost shall
be calculated in a manner established by the commission.