BILL ANALYSIS �
AB 2227
Page 1
ASSEMBLY THIRD READING
AB 2227 (Quirk)
As Amended May 23, 2014
Majority vote
NATURAL RESOURCES 9-0 APPROPRIATIONS 12-0
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|Ayes:|Chesbro, Dahle, Bigelow, |Ayes:|Gatto, Bocanegra, |
| |Garcia, Muratsuchi, | |Bradford, |
| |Patterson, Skinner, | |Ian Calderon, Campos, |
| |Stone, Williams | |Eggman, Gomez, Holden, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Establishes procedures and guidance for the Citizens
Oversight Board (COB) created by the California Clean Energy
Jobs Act (Proposition 39). Specifically, this bill :
1)Requires that funding for the COB shall be available, upon
appropriation by the Legislature, in the annual Budget Act.
2)Specifies that COB members serve for a four-year term and may
be reappointed for two additional terms.
3)Requires that the COB principal office be located in the
California Energy Commission (CEC) office in Sacramento.
4)Specifies procedures for COB meetings and requires COB to meet
at least quarterly.
5)Authorizes COB to elect a chair and vice chair. Specifies
that the chair oversee meetings, work with staff to ensure COB
resolutions are carried out, call special meetings if
necessary, appoint committee chairs, coordinate the hiring of
staff and consultants, and other duties as specified.
6)Requires the COB to:
a) Review and evaluate the progress and status of projects;
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b) Prepare, approve, and distribute annual reports of its
activities, findings, and recommendations to the Governor,
Legislature, and the public; and,
c) Establish procedures for the preparation and
distribution of the annual reports.
7)Provides that the bill's provisions become inoperative on July
1, 2019, and are repealed as of January 1, 2020.
EXISTING LAW :
1)Pursuant to Proposition 39, which was approved by the voters
at the November 6, 2012, statewide general election:
a) Repeals prior law allowing multistate businesses to
choose a formula for calculating their California income or
franchise tax liability and, instead, requires those
businesses, starting in 2013, to utilize the "single sales
factor" (SSF) method of determining their taxable income.
b) Establishes the COB, composed of nine members appointed
by the State Treasurer, the State Controller, and the
Attorney General, as specified. The COB is tasked with:
i) Annually reviewing all expenditures from the Clean
Energy Job Creation Fund (Fund);
ii) Commission and review an annual independent audit of
the Fund and of a selection of projects completed to
assess the effectiveness of the expenditures;
iii) Publish a complete accounting of all expenditures
annually; and,
iv) Submit an evaluation of the program to the
Legislature that identifies any changes needed to meet
the directives.
c) Dedicates $550 million or 50% of the annual increase in
revenues from the SSF, whichever is less, annually for five
fiscal years (2013-14 through 2017-18) to the Fund for
projects that create energy efficiency and clean energy
jobs in California, upon appropriation by the Legislature.
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The funding may include:
i) Energy efficiency and clean energy installations at
public schools, universities and colleges, and other
public buildings;
ii) Job training and workforce development on clean
energy and energy efficiency programs; and,
iii) Financing and technical assistance to fund Property
Assessed Clean Energy (PACE) programs.
2)Pursuant to SB 73 (Budget Committee), Chapter 29, Statutes of
2013:
a) Specifies the allocation of Proposition 39 funding
available for energy efficiency projects at K-12 schools
and community college districts.
b) Requires the CEC, in consultation with the California
Department of Education (CDE), the Chancellor of California
Community College districts, and the Public Utilities
Commission, to develop guidelines for contracts, as
specified.
c) Appropriates $28 million from Proposition 39 funds to
the State Energy Conservation Assistance Account (ECAA) for
energy efficiency loans.
d) Appropriates $3 million from Proposition 39 funds to the
California Workforce Investment Board to develop and
implement a competitive grant program for organizations
that prepare disadvantaged youth or veterans for
employment.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, initial increased costs for the CEC in the range of
$300,000 to $500,000 to staff the COB and perform the required
audits, evaluations, and reports. Ongoing annual costs of up to
$300,000 (Proposition 39 funds).
COMMENTS : The COB was established by voters in Proposition 39
and consists of nine members. Three members are to be appointed
each by the State Controller, the State Treasurer, and the
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Attorney General. To date, the Controller and Treasurer have
appointed members. The purpose of the COB is to review Fund
expenditures, commission and review annual independent audits of
the Fund and selected projects, publish an accounting of annual
expenditures, and submit a program evaluation to the
Legislature.
While Proposition 39 created the COB and its purpose, it was
largely silent on the structure, procedures, and other details
relating to COB operations.
On December 19, 2013, CEC published Proposition 39: California
Clean Energy Jobs Act -2013 Program Implementation Guidelines in
accordance with SB 73. The guidelines define how the state
plans to implement Proposition 39, provide information on the
types of awards and proposal requirements, explain screening and
evaluation criteria, describe the standards that will be used to
evaluate project proposals, and outline the award process.
According to the author, "this legislation provides all the
necessary detail for the board to accomplish its mission." This
bill establishes general governance requirements for the
operations of the COB.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0003746