Chapter 5 - Proposition 39 Implementation

California Public Resources Code — §§ 26225-26240

Sections (8)

Amended by Stats. 2013, Ch. 357, Sec. 53. (SB 97) Effective September 26, 2013.

For the purposes of this chapter, the following terms have the following meanings:

(a)“Chancellor” means the Chancellor of the California Community Colleges.

(b)“Energy Commission” means the State Energy Resources Conservation and Development Commission.

(c)“Local education agency,” “local educational agency,” or “LEA” means a school district, county office of education, charter school, or state special school.

(d)“Job Creation Fund” means the Clean Energy Job Creation Fund established in Section 26205.

§ 26227

Amended by Stats. 2017, Ch. 55, Sec. 9. (SB 110) Effective July 10, 2017.

(a)(1) For the 2013–14 fiscal year, twenty-eight million dollars ($28,000,000) shall be transferred from the Job Creation Fund to the Education Subaccount, which is hereby created in the State Energy Conservation Assistance Account created pursuant to Section 25416. The moneys in the Education Subaccount are appropriated to the Energy Commission for the purpose of low-interest and no-interest revolving loans and loan loss reserves for eligible projects and technical assistance.

(2)For the 2013–14 fiscal year, funds in the Education Subaccount shall be available for local educational agencies and community college districts. If a local educational agency or community college district has an eligible project, the amount of the funding resources gap that is to be considered a reasonable loan value from the Education Subaccount is the project cost less the amount of any grant awarded pursuant to Section 26233 and less any state, federal, or local incentives. A local educational agency or community college district may need to meet additional credit or other financial qualifying criteria applicable pursuant to the Energy Conservation Assistance Act of 1979 (Chapter 5.2 (commencing with Section 25410) of Division 15). The Energy Commission shall facilitate a local educational agency or community college district’s participation in both the Job Creation Fund and Energy Conservation Assistance Account programs through coordinated information, documentation, and review processes regarding the project and the borrowing entity.

(b)For the 2014–15 through 2017–18 fiscal years, inclusive, the amount transferred from the Job Creation Fund to the Energy Conservation Assistance Account shall be determined in the annual budget.

(c)Funds remaining in the Education Subaccount after the 2017–18 fiscal year shall continue to be available in future years pursuant to Section 26205.5.

§ 26227.2

Amended by Stats. 2017, Ch. 250, Sec. 18. (AB 129) Effective September 16, 2017.

(a)Commencing with the 2018–19 fiscal year, the Clean Energy Job Creation Program is hereby established for the purpose of funding projects described in paragraph (1) or (2) of subdivision (a) of Section 26205 that create jobs in California improving energy efficiency and expanding clean energy generation.

(b)All of the following criteria shall apply to the Clean Energy Job Creation Program:

(1)Project selection and oversight shall be managed by, and funds shall be appropriated only to, existing state and local government agencies with established expertise in managing energy projects and programs.

(2)All projects shall be selected

based on in-state job creation and energy benefits for each project type.

(3)All projects shall be cost effective with the total benefits being greater than the costs of the project over time. Project selection may, in addition to energy benefits, include consideration of nonenergy benefits, such as health and safety.

(4)All projects shall require contracts that identify the project specifications, costs, and projected energy savings.

(5)All projects shall be subject to audit.

(6)Program overhead costs, including administrative costs incurred by the Energy Commission, shall not exceed 4 percent of the total funding.

(7)Agencies administering the program shall coordinate with the

Energy Commission and the Public Utilities Commission to avoid duplication and to maximize leverage of existing energy efficiency and clean energy efforts.

(8)Eligible expenditures include expenditures associated with technical assistance and with reducing project costs and delays, including the development and implementation of processes that reduce the costs of design, permitting or financing, or other barriers to project completion and job creation.

(c)Commencing with the 2018–19 fiscal year, funds appropriated in the annual Budget Act or another statute for the Clean Energy Job Creation Program shall be available as follows:

(1)Eleven percent of the funds shall be available to community college districts, to be allocated by the Chancellor of the California Community Colleges at his or her discretion for

program purposes.

(2)(A) The remaining moneys shall be allocated to local educational agencies as follows:

(i)Ten percent shall be for local educational agencies with an average daily attendance of not more than 1,000.

(ii) Ten percent shall be for local educational agencies with an average daily attendance of more than 1,000 and not more than 2,000.

(iii) Eighty percent shall be for local educational agencies with an average daily attendance of more than 2,000.

(B) The Energy Commission may adjust the funding allocations specified in subparagraph (A) and may add additional categories based on average daily attendance to further the purposes of this section.

(C) The Energy Commission in allocating grants to local educational agencies pursuant to this section shall give priority based on the following:

(i)The local educational agency’s percentage of students eligible for free or reduced-price meals in the prior year.

(ii) Geographic diversity that ensures urban, suburban, and rural local educational agencies receive grants and ensures the awarding of grant funding in all regions of the state.

(iii) Workforce needs of the areas in which the local educational agencies are located, as determined by the California Workforce Investment Board and the local workforce investment boards.

(d)A local educational agency that receives moneys pursuant to this

section shall encumber those moneys within nine months of allocation.

(e)For purposes of this section, a “local educational agency” means a school district, county office of education, charter school, or state special school.

§ 26230

Added by Stats. 2013, Ch. 29, Sec. 2. (SB 73) Effective June 27, 2013.

(a)The sum of three million dollars ($3,000,000) is hereby appropriated from the Job Creation Fund to the California Workforce Investment Board to develop and implement a competitive grant program for eligible community-based and other training workforce organizations preparing disadvantaged youth or veterans for employment.

(b)In developing and implementing the program, the board shall do all of the following:

(1)In consultation with the Energy Commission and the Public Utilities Commission, develop a competitive process to award grants to eligible entities and evaluate and select applications for grants.

(2)Administer grants to eligible entities for the purposes of work experience and job training on energy efficiency and clean energy projects.

(c)In awarding the grants, the California Workforce Investment Board shall give priority to projects that include the following elements:

(1)Specific skills gained through hands-on application related to energy efficiency and clean energy that is embedded in, or linked to, a broader occupational training program.

(2)Actual work experience gained through hands-on clean energy project implementation.

(3)Industry-recognized credentials and certificates.

(4)Training that demonstrates a

high probability of placement of trainees into career track jobs.

(5)A partnership with state-approved apprenticeship programs that promote industry-recognized skills and credentials through work experience and lead to placement in a state-approved apprenticeship programs.

§ 26233

Amended by Stats. 2017, Ch. 55, Sec. 11. (SB 110) Effective July 10, 2017.

(a)Commencing with the 2013–14 fiscal year and through the 2017–18 fiscal year, inclusive, the funds deposited annually in the Job Creation Fund and remaining after the transfer pursuant to Section 26227 and the appropriation pursuant to Section 26230 shall be allocated, to the extent consistent with this division, as follows:

(1)Eighty-nine percent of the funds shall be available to local educational agencies and allocated by the Superintendent of Public Instruction pursuant to subdivision (b).

(2)Eleven percent of the funds shall be available to community college districts and allocated by the Chancellor of the California Community Colleges at his or her discretion.

(b)The Superintendent of Public Instruction shall allocate the funds provided in paragraph (1) of subdivision (a) as follows:

(1)Eighty-five percent on the basis of average daily attendance reported as of the second principal apportionment for the prior fiscal year. For purposes of this section, average daily attendance for the state special schools shall be deemed to be 97 percent of the prior year enrollment as reported in the California Longitudinal Pupil Achievement Data System.

(A)For every local educational agency with average daily attendance as reported pursuant to this subdivision of 100 or less, the amount awarded shall be fifteen thousand dollars ($15,000).

(B)For every local educational agency with average daily attendance as reported

pursuant to this subdivision in excess of 100, but 1,000 or less, the amount awarded shall be either that local educational agency’s proportional award on the basis of average daily attendance or fifty thousand dollars ($50,000), whichever amount is larger.

(C)For every local educational agency with average daily attendance as reported pursuant to this subdivision in excess of 1,000, but less than 2,000, the amount awarded shall be either that local educational agency’s proportional award on the basis of average daily attendance or one hundred thousand dollars ($100,000), whichever amount is larger.

(D)For every local educational agency with average daily attendance as reported pursuant to this subdivision of 2,000 or more, the amount awarded shall be the local educational agency’s proportional award on the basis of average daily attendance.

(2)Fifteen percent on the basis of students eligible for free and reduced-price meals in the prior year.

(3)For every local educational agency that receives over one million dollars ($1,000,000) pursuant to this subdivision, not less than 50 percent of the funds shall be used for projects larger than two hundred fifty thousand dollars ($250,000) that achieve substantial energy efficiency, clean energy, and jobs benefits.

(c)A local educational agency subject to subparagraph (A) or (B) of paragraph (1) of subdivision (b) may submit a written request to the Superintendent of Public Instruction, by September 1 of each year, to receive in the current year its funding allocation for both the current year and the following year, both of which would be based on the average daily attendance used in the current year for

determining funding pursuant to the applicable subparagraph. A local educational agency requesting funding pursuant to this subdivision shall not receive a funding allocation in the year following the request. This election applies to the funding available pursuant to paragraphs (1) and (2) of subdivision (b).

(d)A local educational agency shall encumber funds received pursuant to this section by June 30, 2019.

§ 26235

Amended by Stats. 2017, Ch. 250, Sec. 19. (AB 129) Effective September 16, 2017.

(a)The Energy Commission, in consultation with the Superintendent of Public Instruction, the Chancellor of the California Community Colleges, and the Public Utilities Commission, shall establish guidelines for the following:

(1)Standard methods for estimating energy benefits, including reasonable assumptions for current and future costs of energy, and guidelines to compute the cost of energy saved as a result of implementing eligible projects funded by this chapter.

(2)Contractor qualifications, licensing, and certifications appropriate for the work to be performed, provided that the Energy Commission shall not create any new qualification, license, or certification pursuant to this

subparagraph.

(3)Project evaluation, including the following:

(A)Benchmarks or energy rating systems to select best candidate facilities.

(B)Use of energy surveys or audits to inform project opportunities, costs, and savings.

(C)Sequencing of facility improvements.

(D)Methodologies for cost-effectiveness determination.

(4)To 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 funding provided pursuant to this section. The Energy Commission shall develop a simple preinstallation verification

form that includes project description, estimated energy savings, expected number of jobs created, current energy usage, and costs. The Energy Commission may develop benchmarking and other innovative facility evaluation systems in coordination with the University of California.

(5)Achievement of the maximum feasible energy efficiency or clean energy benefits, as well as job creation benefits for Californians, resulting from projects implemented pursuant to this chapter.

(6)Where applicable, ensuring LEAs assist classified school employees with training and information to better understand how they can support and maximize the achievement of energy savings envisioned by the funded project.

(b)The Energy Commission shall allow the use of data analytics of energy usage data, where possible, in the energy auditing,

evaluation, inventorying, measuring, and verification of projects. To ensure quality of results, data analytics providers shall have received prior technical validation by the Energy Commission, a local utility, or the Public Utilities Commission.

(c)A community college district or LEA shall not use a sole source process to award funds pursuant to this chapter. A community college district or LEA may use the best value criteria as defined in paragraph (1) of subdivision (c) of Section 20133 of the Public Contract Code to award funds pursuant to this chapter.

(d)The Energy Commission shall adopt the guidelines in accordance with this section at a publicly noticed meeting and provide an opportunity for public comment. The Energy Commission shall provide written public notice of a meeting at least 30 days prior to the meeting.

(1)For substantive revision of the guidelines, the Energy Commission shall provide written notice of a meeting at least 15 days prior to the meeting at which the revision is to be considered or adopted.

(2)The adoption or revision of guidelines pursuant to this division is exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(e)Each participating LEA shall prioritize the eligible projects within its jurisdiction taking into consideration, as applicable, at least the following factors:

(1)The age of the school facilities, as well as any plans to close or demolish the facilities.

(2)The proportion of pupils eligible for funds under Title I of the federal No Child Left Behind

Act of 2001 (20 U.S.C. Sec. 6301 et seq.) at particular schoolsites.

(3)Whether the facilities have been recently modernized.

(4)The facilities’ hours of operation, including whether the facilities are operated on a year-round basis.

(5)The school’s energy intensity as determined from an energy rating or benchmark system such as the United States Environmental Protection Agency’s Energy Star system or other acceptable benchmarking approach that may be available from local utilities, the American Society for Heating, Refrigerating, and Air-Conditioning Engineers, Inc., or reputable building analysis software as is appropriate to the size, budget, and expertise available to the school.

(6)The estimated financial return of each project’s investment

over the expected lifecycle of the project, in terms of net present value and return on investment.

(7)Each project’s potential for energy demand reduction.

(8)The anticipated health and safety improvements or other nonenergy benefits for each project.

(9)The individual or collective project’s ability to facilitate matriculation of local residents into state-certified apprenticeship programs.

(10)The expected number of trainees and direct full-time employees likely to be engaged for each LEA’s annual funding commitments based upon a formula to be made available by the Energy Commission or California Workforce Investment Board. The formula shall be stated as labor-intensities per total project dollar expended, and may differentiate by type of

improvement, equipment, or building trade involved.

(11)The ability of the project to enhance workforce development and employment opportunities, utilize members of the California Conservation Corps, certified local conservation corps, Youth Build, veterans, Green Partnership Academies, nonprofit organizations, high school career technical academies, high school regional occupational programs, or state-certified apprenticeship programs, or to accommodate learning opportunities for school pupils or at-risk youth in the community.

(f)The Superintendent of Public Instruction shall not distribute funds to an LEA unless the LEA has submitted to the Energy Commission, and the Energy Commission has approved, an expenditure plan that outlines the energy projects to be funded. An LEA shall utilize a simple form expenditure plan developed by the Energy Commission. The Energy Commission

shall promptly review the plan to ensure that it meets the criteria specified in this section and in the guidelines developed by the Energy Commission. A portion of the funds may be distributed to an LEA upon request for energy audits and other plan development activities prior to submission of the plan.

(g)This section shall not affect the eligibility of any eligible entity awarded a grant pursuant to this section to receive other incentives available from federal, state, and local government, or from public utilities or other sources, or to leverage the grant from this section with any other incentive.

(h)Any limitation of funds awarded to individual projects pursuant to this chapter shall not preclude or otherwise limit the total amount of funds that a recipient LEA or community college may otherwise be eligible to receive as a result of identifying multiple projects that

meet the overall objectives and criteria described in this chapter.

(i)For a school facility that is not publicly owned, an LEA receiving moneys pursuant to this chapter for a project for that facility shall require that the school repay to the state all moneys received from the Job Creation Fund for the project if the school voluntarily vacates the facility within five years of project completion. The facility owner shall repay to the state all moneys received from the Job Creation Fund for the project if the school was forced to vacate the facility within the life of the project completion. All benefits of these public funds should be received by the school utilizing the facility.

(j)It is the intent of the Legislature that monetary savings at eligible institutions from retrofit and installation projects pursuant to this section be used to benefit students and learning at

those institutions.

§ 26237

Added by Stats. 2013, Ch. 29, Sec. 2. (SB 73) Effective June 27, 2013.

The Energy Commission shall maintain information on the local education agencies and community college districts that receive grants, loans, or other financial assistance under this chapter. The publicly available and searchable database shall include relevant metrics, to be determined by the Energy Commission, for electric, gas, and cost savings of the projects.

§ 26240

Amended by Stats. 2017, Ch. 55, Sec. 12. (SB 110) Effective July 10, 2017.

(a)To later quantify the costs and benefits of funded projects, an entity that receives funds from the Job Creation Fund or pursuant to subdivision (c) of Section 26227.2 shall authorize its local electric and gas utilities to provide 12 months of past and ongoing usage and billing records at the school facility site level to the Energy Commission.

(b)As a condition of receiving funds from the Job Creation Fund or pursuant to subdivision (c) of Section 26227.2, not sooner than one year but no later than 15 months after an entity completes its first eligible project with a grant, loan, or other assistance from the Job Creation Fund or pursuant to subdivision (c) of Section 26227.2, the entity shall submit a report of its project expenditures to the Citizens Oversight Board created pursuant to Chapter 3 (commencing with Section 26210). To the extent practical, this report shall also contain information on any of the following:

(1)The total final gross project cost before deducting any incentives or other grants and the percentage of total project cost derived from the Job Creation Fund or pursuant to subdivision (c) of Section 26227.2.

(2)The estimated amount of energy saved, accompanied by specified energy consumption and utility bill cost data for the individual facility where the project is located, in a format to be specified by the Energy Commission.

(3)The nameplate rating of new clean energy generation installed.

(4)The number of trainees.

(5)The number of direct full-time equivalent employees and the average number of months or years of utilization of each of these employees.

(6)The

amount of time between awarding of the financial assistance and the completion of the project or training activities.

(7)The entity’s energy intensity before and after project completion, as determined from an energy rating or benchmark system, to be determined by the Energy Commission, such as the United States Environmental Protection Agency’s Energy Star system or other acceptable benchmarking approach that may be available from local utilities, the American Society for Heating, Refrigerating, and Air-Conditioning Engineers, Inc., or a publicly available building analysis software as is appropriate to the size, budget, and expertise available to the school.

(c)If an LEA completes more than one project, the required information for a second and any subsequent project shall be submitted no later than the first full quarter following project completion.

(d)To minimize the calculation burden on LEAs, the Energy Commission shall develop a method to utilize the data submitted by each recipient LEA in its project reports, such as utility consumption data, building operating characteristics, and other information, to calculate for each project, LEA, or the state as a whole the actual or estimated energy and cost savings. This method shall include a means to combine gas and electric savings into a combined cost of saved energy factor and to report on other economic and investment performance metrics. The Energy Commission shall prepare an annual summary of the expenditures, energy savings, effective cost of saved energy or return on investment, and employment effects of each year’s completed projects, and shall provide this report to the Citizens Oversight Board.

(e)The California Workforce Investment Board, in consultation with the

Energy Commission, shall utilize the reports filed with the Citizens Oversight Board to quantify total employment affiliated with funded projects, as well as to estimate new trainee, apprentice, or full-time jobs resulting from Job Creation Fund activity or from funds appropriated pursuant to subdivision (c) of Section 26227.2. The California Workforce Investment Board shall prepare a report with this information annually and submit it to the Citizens Oversight Board.

(f)The Citizens Oversight Board shall report the information it receives pursuant to subdivisions (a) to (e), inclusive, to the Legislature as part of its responsibilities pursuant to subdivision (d) of Section 26210. The Citizens Oversight Board’s report shall be submitted annually and posted on a publicly accessible Internet Web site.

(g)Funding provided to LEAs pursuant to this chapter is subject to annual audits required by Section 41020 of the Education Code. Funding provided to

community college districts pursuant to this chapter is subject to annual audits required by Section 84040 of the Education Code.

(h)(1) The Superintendent of Public Instruction shall require local educational agencies to pay back funds if they are not used in accordance with state statute or regulations, if a project is torn down or remodeled, or if the property is deemed to be surplus and sold prior to the payback of the project.

(2)The Chancellor of the California Community Colleges shall require a community college to pay back funds if they are not used in accordance with state statute or regulations, if a project is torn down or remodeled, or if the property is deemed to be surplus and sold prior to the payback of the project.