BILL ANALYSIS �
AB 1186
Page 1
GOVERNOR'S VETO
AB 1186 (Skinner)
As Amended August 31, 2012
2/3 vote
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|ASSEMBLY: |70-0 |(May 12, 2011) |SENATE: |21-18|(August 31, |
| | | | | |2012) |
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|ASSEMBLY: |47-27|(August 31, | | | |
| | |2012) | | | |
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Original Committee Reference: U. & C.
SUMMARY : Directs the California Energy Commission (CEC) to fund
energy efficiency improvements for K-12 schools through the
existing Bright Schools program and utilizes revenues from the
sales of emissions credits from the California Air Resources
Board's (ARB) cap and trade program.
The Senate amendments delete the Assembly version of the bill
and instead would:
1)Enact the School Energy Efficiency and Greenhouse Reduction
Act as a special fund in the State Treasury.
2)Require that 20% of specified revenues deposited during the
2012-12 fiscal year in the Greenhouse Gas Reduction Fund.
3)Continuously appropriate the funds in the School Energy
Efficiency and Greenhouse Gas Reduction Fund to the CEC for
the purposes of a grant program for eligible K-12 schools for
energy efficiency improvements that achieve greenhouse gas
reductions.
AS PASSED BY THE ASSEMBLY , required that usage of natural gas be
separately disclosed when it is used for conventional power
plant and peaker-plant generation, and when it is used for
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combined heat and power system generation.
FISCAL EFFECT : Unknown
COMMENTS : The state currently administers several multiple
energy efficiency programs, including those specifically
targeted to K-12 schools. These programs are administered by
the California Public Utilities Commission (PUC), CEC, and the
Office of Public School Construction (OPSC).
The PUC issued a decision on May 10, 2012, establishing the
parameters by which electrical corporations will design their
efficiency programs 2013-14, and includes specific reference
toward encouraging investment in municipalities, universities,
colleges, schools, and hospitals, but does not make specific
guidance on what level of funding should be directed to schools.
Those investment plans and budgets were due to the CEC in July.
The CEC administers the Energy Conservation Assistance Act which
makes low interest loans for energy efficiency and renewable
energy to public schools, public hospitals and local
jurisdictions. Loans do not become due until energy cost
savings have occurred and are repaid from those cost savings.
According to the CEC, the program has issued 320 loans to
schools totaling $45.1 million.
The School Facilities Program Modernization Program provides
bond funds on a 60/40 state and local match for improvements to
educationally enhance existing school facilities. New
construction is a 50/50 match. Projects eligible under this
program include modifications such as air conditioning,
plumbing, lighting, and electrical systems. There is $267.4
million modernization bond funding remaining with new
applications for funding in excess of that amount pending before
OPSC.
School districts are permitted to use deferred maintenance funds
for energy efficiency projects. Prior to 2009, the deferred
maintenance program provides General Funds on a 50/50 state and
local match. Since 2009, districts have been deemed in
compliance with funding requirements and have, therefore, not
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needed to match the state's share. This is part of the
categorical relief provided to school districts allowing the use
of these funds for any educational purpose. The 2012 Budget
Act appropriated $313 million for deferred maintenance.
The 2012 Budget Act estimates that cap-and-trade revenues from
the first set of auctions will be $1 billion in 2012-13. Actual
revenues will not be known until the auctions have been
completed.
SB 1018 (Budget and Fiscal Review Committee), Chapter 39,
Statutes of 2012, establishes the Greenhouse Gas Reduction Fund
(Fund) and would require any money collected by the Air
Resources Board from the auction or sale of allowances pursuant
to a market-based compliance mechanism to be deposited in the
Fund. It also specifies that the Fund be appropriated in the
annual Budget Act and requires the Department of Finance to
submit to the Legislature a proposal for expenditure of the
Fund, unless the Legislature passes a bill before August 31,
2012, specifying a process for establishing a long-term spending
plan that includes: a) criteria and requirements for the use of
the auction proceeds, b) establishment of program categories
eligible for funding, and c) the specification of the process
that ARB use to develop the strategy. SB 1018 further requires
agencies expending moneys from the Fund to prepare a record
describing the uses of the funds, how they further the goals of
the California Global Warming Solutions Act of 2006 (CGWSA),
including attainment of the 2020 limit, how non-GHG emissions
objectives of the CGSWA were considered, and a description of
how the agency will document the results of the expenditure.
GOVERNOR'S VETO MESSAGE :
"This bill would create the School Energy Efficiency and
Greenhouse Gas Reduction Fund. Though well intended, it jumps
the gun by establishing a program before we are ready."
Analysis Prepared by: DaVina Flemings / U. & C. / (916)
319-2083
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FN: 0005983