Presentation on theme: "Proposition 39: Investments in Energy Efficiency for Schools"— Presentation transcript:
1Proposition 39: Investments in Energy Efficiency for Schools Capitol Advisors Group, LLCCASBO Annual ConferenceKevin Gordon, President – Capitol AdvisorsBrad Chapman, Climatec, Inc.Bill McGuire, SuperintendentSt. Helena Unified School District
2An Overview Prop 39 on the Ballot – What Voters Approved The Governor’s ProposalThe Legislative Analyst’s PerspectiveSB 39 – Senator Kevin DeLeonAB 39 – Assembly Member Nancy SkinnerThe Education Community ResponseOutlook for the May Revision & Beyond
3Prop 39 – As Approved by Voters Passed by voters last NovemberRaises more than $1 billion annually in Corporate income tax revenue by moving to single sales tax factor for most businesses.For first five years, half the revenue required to fund Clean Energy Job Creation FundAn estimated $450 the first year and $550 for each of the next four years is dedicated for this purpose.Improve energy efficiency and expand alt energy.K-14 Public Schools, CSU and UC and other “public buildings”Public-Private partnerships and workforce raining related to energyAppropriate only to agencies with expertise in managing energy projects and programsCoordinated with CEC and CPUC to avoid duplication and leverage existing energy efficiency and alternative energy efforts.
4Existing ProgramsMore than a dozen existing programs managed by multiple agencies including CEC, CPUC, and by public and Investor- owned utilities.California has spent almost $15 billion over the past years on these efforts.
5The Governor’s Proposal Significantly departs from ballot measure in implementation approachCounts all revenue from Prop 39 toward Prop 98 minimum guarantee, including funds spent on energy projectsFocus energy funding exclusively on K-14 schools.$400.5 Million for K-12 schools$49.5 Million for Community Colleges
6The Governor’s Proposal Funding administered through CDE for K-12 and Chancellor’s Office for CCs.These agencies would issue guidelines for prioritizing the use of funds by LEAs.CDE and Chancellor’s Office required to “consult” with CEC and CPUC on guidelines.Budget provides a permanent full time position at CDE for coordination.Allocates funding on an ADA basis$67 for K-12$45 for Community CollegesReport due to CDE and Chancellor on expenditures.
7The Governor’s Proposal Funds may be used for uses consistent with the state’s loading order policies, including:Construction or modernization of buildings in a manner that uses less energyPurchasing energy efficient equipmentUndertaking renewable energy projects such as installation of solar panels and geothermal heat pumps
8The Legislative Analyst’s View Questions Treatment of Proposition 39 RevenuesVaries from LAOs longstanding view of Proposition 98.Assert potential for greater manipulation of the minimum guarantee.Questions Allocation Method - Limited BenefitExcludes many eligible projects.Fails to account for energy consumption differences.Allocates funding inefficiently.May not guarantee return on investment.Does not account for significant past investments in K– 14 facilities.Fails to sufficiently leverage existing programs and experience.
9The Senate Bill - SB 39Senator Kevin DeLeon & Senate President Pro- Tem Darrell Steinberg“Clean Energy Employment and Student Advancement Act”Follows emphasis on education but allows funds for both K-12 and higher ed. institutionsVests the Office of Public School Construction and State Allocation Board with administrative roleThey shall “consult” with Energy Commission and PUCCompetitive grant-based, and need-based approaches
10The Assembly Version - AB 39 Assembly Member Skinner and Assembly Speaker John Perez“California Clean Energy Jobs Act”K-12, Higher Ed, “Other public buildings,” Public-Private Partnerships, Job creation and workforce development agenciesVests the Energy Commission with administrative authority“In consultation with Superintendent of Public Instruction”Grant, loan based approaches
11The Education Community Perspective Governor’s approach preferablePer ADA funding with fewest strings possibleGrant writing expertise not requiredAs little bureaucracy as possibleKeeps Energy Commission and PUC in consultative roles only.Job related provisions should be linked to the energy work directly, not a fund to simply be directed to workforce development generally.All proposals have end of project reporting and bill language related to Citizens Oversight Board.
12Outlook for the May Revision Governor’s influence never strongerEducation focus is politically defensiblePer ADA approach is unfortunately vulnerableBoth bills & LAO reject this approachSmall school districts argument is double edgedAlmost every district can use these funds for some form of energy efficiency.Local control versus biggest possible projects
13Energy Efficiency Efforts That Likely Fit Reducing overall energy load firstReal state-of-the-art energy efficient infrastructureEducation on efficiency measures everyone can takeRenewable focus comes nextSolar projects – What helps and what doesn’tLeveraging every resourcePublic UtilitiesInvestor Owned Utilities (IOUs)Bond AugmentationData proven results for accountability process