BILL ANALYSIS �
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THIRD READING
Bill No: AB 2227
Author: Quirk (D)
Amended: 6/30/14 in Senate
Vote: 21
SENATE ENERGY, UTILITIES & COMMUNICATIONS COMM : 10-0, 6/23/14
AYES: Padilla, Fuller, Cannella, Corbett, De Le�n, DeSaulnier,
Hill, Knight, Pavley, Wolk
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 5/28/14 - See last page for vote
SUBJECT : Citizens Oversight Board: implementation
SOURCE : Western States Council of Sheet Metal Workers
DIGEST : This bill establishes procedures and guidance for the
Citizens Oversight Board (COB) created by the California Clean
Energy Jobs Act.
ANALYSIS : Existing law:
1.Establishes the Clean Energy Job Creation Fund to provide
financial assistance to projects that create jobs in
California improving energy efficiency and expanding clean
energy generation, with up to $550 million per year through
2017-18 from state corporate tax revenues.
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2.Establishes the COB with members appointed by the State
Controller, Treasurer and Attorney General to review and
evaluate these projects under the Clean Energy Job Creation
Fund.
3.Implementing Proposition 39 specifies allocation of funding
available for energy efficiency projects at K-12 schools and
community college districts.
This bill:
1.Requires, through July 1, 2019, that funding for the COB be
available, upon appropriation by the Legislature, in the
annual Budget Act; requires the COB to be located within the
California Energy Commission (CEC); and establishes a
governance structure with members serving four-year terms and
meetings at least quarterly.
2.Requires the COB to review and evaluate the progress and
status of projects, and submit annual reports of its
activities, findings, and recommendations to the Governor,
Legislature, and public.
3.Becomes inoperative on July 1, 2019, and is repealed as of
January 1, 2020.
Background
Proposition 39. This ballot initiative was approved by voters
at the November, 2012 election. Titled the California Clean
Energy Jobs Act of 2012, it requires most multistate businesses
to determine their California taxable income using a single
sales factor method. (Previously, state law allowed such
businesses to pick one of two different methods to determine the
amount of taxable income associated with California and taxable
by the state.) This change has the effect of increasing state
corporate tax revenue.
For a five-year period (2013-14 through 2017-18), Proposition 39
requires that half of the annual revenue raised from the
measure, up to $550 million, be transferred to a new Clean
Energy Job Creation Fund to support projects intended to improve
energy efficiency and expand the use of alternative energy.
"Moneys in the fund shall be available for appropriation for the
purpose of funding projects that create jobs in California
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improving energy efficiency and expanding clean energy
generation." Proposition 39 specifically requires that the
funds maximize energy and job benefits by supporting:
Energy efficiency retrofits and alternative energy projects in
public schools, colleges, universities, and other public
facilities;
Financial and technical assistance for energy retrofits; and
Job training and workforce development programs related to
energy efficiency and alternative energy.
Proposition 39 also requires that funded programs be coordinated
with the CEC and California Public Utilities Commission (CPUC)
in order to avoid duplication and leverage existing energy
efficiency and alternative energy efforts. In addition,
Proposition 39 states that the funding is to be appropriated
only to agencies with established expertise in managing energy
projects and programs. Legislation implementing Proposition 39
allocated $450 million in the 2013-14 fiscal year for a K-14
education, with $400.5 million to the California Department of
Education (CDE) for allocation to K-12 school districts, charter
schools and county offices of education and $49.5 million to the
California Community Colleges (CCC) for allocation to community
college districts. The Governor requires CDE and CCC to allocate
these funds on a per student basis.
COB Established . Proposition 39 also established the COB
consisting of nine members with three appointed each by the
State Controller, the State Treasurer, and the Attorney General.
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. Proposition
39 stated that the COB is required to:
Annually review all expenditures from the Job Creation Fund;
Commission and review an annual independent audit of the Job
Creation Fund and of a selection of projects completed to
assess the effectiveness of the expenditures in meeting the
objectives of this division;
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Publish a complete accounting of all expenditures each year,
posting the information on a publicly accessible Internet Web
site; and
Submit an evaluation of the program to the Legislature
identifying any changes needed to meet the objectives of this
division.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/4/14)
Western States Council of Sheet Metal Workers (source)
California School Employees Association
ARGUMENTS IN SUPPORT : According to the author, Proposition 39
established the COB in order to review and evaluate projects
funded by the Clean Energy Job Creation Fund but failed to
include language implementing the COB's mandate. This bill
provides the necessary structure so the COB can begin to
evaluate, review and report how the funds are spent. This bill
establishes general governance requirements for the operations
of the COB and provides all the necessary detail for the COB to
accomplish its mission.
ASSEMBLY FLOOR : 77-0, 05/28/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Donnelly, Frazier, Vacancy
JG:nl 8/4/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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