BILL NUMBER: SB 39INTRODUCED BILL TEXT INTRODUCED BY Senators De Len and Steinberg (Coauthors: Senators Beall, Block, Calderon, Corbett, DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, Jackson, Lara, Leno, Lieu, Liu, Negrete McLeod, Padilla, Pavley, Price, Roth, Rubio, Vargas, Wolk, and Yee) (Coauthors: Assembly Members Skinner and Torres) DECEMBER 5, 2012 An act to add Chapter 5 (commencing with Section 26230) to Division 16.3 of the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST SB 39, as introduced, De Len. Energy: school facilities: energy efficiency upgrade projects. The California Clean Energy Jobs Act, an initiative measure enacted by voters at the November 6, 2012, statewide general election, establishes the Clean Energy Job Creation Fund and requires moneys in the fund to be available for appropriation during specified fiscal years for, among other things, the purposes of funding energy efficiency projects in school facilities. This bill would enact the Clean Energy Employment and Student Advancement Act of 2013 and would require the Office of Public School Construction to establish a school district assistance program to distribute grants, on a competitive basis, for energy efficiency upgrade projects pursuant to the California Clean Energy Jobs Act. The bill would require the office, upon the approval of the State Allocation Board, to award a school district grants for energy efficiency upgrade projects meeting specified criteria. The bill would require the office to give priority applications meeting specified criteria. This bill would state the intent of the Legislature to appropriate moneys to the Office of Public School Construction from the fund for the purposes of awarding energy efficiency grants to the most disadvantaged schools in need of modernization for the purposes of energy efficiency upgrades. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) The people of the State of California voiced their strong support for the California Clean Energy Jobs Act by enacting Proposition 39 at the November 6, 2012, statewide general election. The voters closed an egregious corporate tax loophole that only benefitted out-of-state companies at the expense of expanded employment in our state. (2) It is the duty of the Legislature to put these dollars to work in a manner that voters can see and experience the benefit. Proposition 39 enumerated the following key principles in guiding the expenditure of the revenues raised through the California Clean Energy Jobs Act (Division 16.3 (commencing with Section 26200) of the Public Resources Code): (A) Maximize job creation. (B) Shrink our carbon footprint. (C) Minimize bureaucratic costs. (D) Create full transparency. (E) Demand rigorous accountability. (F) Create measurable results. (3) Since the recession began in late 2007, California has lost nearly 1.4 million jobs, including 400,000 in the construction industry alone. Investing in energy efficiency will maximize job creation and will help the state regain a sense of economic security and sustainability at a time when unemployment remains high. The state can further stimulate its economy by putting the industry segment back to work that is most in need - the construction trades. (4) Studies show the continuing high cost of energy and utilities due to inefficient lighting, insulation, heating, ventilation, and air conditioning systems, plumbing, windows, and irrigation systems take local money away from educational programs. For example, the Los Angeles Unified School District spends $105,000,000 annually on electricity. Energy efficiency improvements for public schools will reduce long-term energy costs and the savings can be directed to the classroom. (5) Substandard physical environments are strongly associated with truancy and other behavior problems in pupils. Lower pupil attendance leads to lower scores on standardized tests in English-language arts and math. Schools with better building conditions have up to 14 percent lower pupil suspension rates. Improving a school's health and safety standards can lead to a 36-point increase in California Academic Performance Index scores. (6) Several studies have determined that children suffer significant health consequences from excessive heat, inadequate heating, ventilation, and air conditioning systems, mold and other biological hazards, pest infestations, lead and other toxic hazards, and overcrowding beyond the stated capacity of the school structure. Research repeatedly shows the detrimental impact to the health of pupils due to poor indoor air quality in classrooms. Increasing energy efficiency will reduce air pollution that causes asthma and lung disease. (7) Economically disadvantaged school communities are often the same areas that suffer most from high unemployment and destructive or unlawful conduct by youth. The program funded by revenues generated by the California Clean Energy Jobs Act will encourage community participation in, and a greater sense of responsibility toward, educational, environmental, and fiscal benefits of modernizing facilities, which will enhance community pride and sustain neighborhood vitality. (b) It is the intent of the Legislature that: (1) The funds made available through the California Clean Energy Jobs Act be used to award competitive grants statewide to economically disadvantaged school communities that are accomplished by delivering project funds to neighborhoods in areas of highest need, while offering technical assistance to all applicants and potential applicants for grant preparation to encourage full participation in the grant program. (2) The grant program funded by revenues generated by the California Clean Energy Jobs Act will finance competitive grants for energy efficiency upgrade projects that provide operational cost-savings improvements in K-12 school facilities. (3) Energy efficiency upgrade projects create long-term benefits and cost savings for school districts by significantly reducing energy operational costs, creating a healthy indoor environment for our pupils and staff and reducing the impact that energy creation and consumption has on our natural environment. (4) Energy efficiency upgrade projects also provide short-term benefits, including the creation of prevailing-wage paying jobs in communities around the state, and stimulate local economies. SEC. 2. It is the intent of the Legislature to make moneys available to the Office of Public School Construction, upon appropriation, from the Clean Energy Job Creation Fund to award energy efficiency upgrade grants to the most disadvantaged schools in need of modernization for the purposes of energy efficiency upgrades pursuant to the California Clean Energy Jobs Act (Division 16.3 (commencing with Section 26200) of the Public Resources Code). SEC. 3. Chapter 5 (commencing with Section 26230) is added to Division 16.3 of the Public Resources Code, to read: CHAPTER 5. CLEAN ENERGY EMPLOYMENT AND STUDENT ADVANCEMENT ACT OF 2013 26230. This chapter shall be known, and may be cited, as the Clean Energy Employment and Student Advancement Act of 2013. 26231. As used in this chapter, the following terms shall have the following meanings: (a) "Energy efficiency upgrade project" means a school facility project that reduces energy consumption and operational costs through means that include, but are not limited to, improvements to one or a combination of the following: (1) Ventilation. (2) Lighting and other system controls. (3) Air infiltration. (4) Water use. (5) Windows and doors (fenestration). (6) Heating and Cooling (HVAC). (7) Electrical System. (8) Insulation. (b) "Office" means the Office of Public School Construction. (c) "School district" means a school district or a county office of education. 26232. The office shall establish a school district assistance program to distribute grants, on a competitive basis, prioritizing economically disadvantaged school communities for energy efficiency upgrade projects that offer the highest energy efficiency saving, pursuant to this division. 26233. (a) The office shall offer technical assistance to all applicants and potential applicants for grant preparation to encourage full participation in the grant program. (b) The office shall use existing benchmarking tools to determine present average energy consumption for a school facility by size and type. 26234. Upon approval by the State Allocation Board, the office shall award to a school district a grant pursuant to this chapter only for an energy efficiency upgrade project that meets all of the following criteria: (a) The proposed project meets the qualifications of an energy efficiency upgrade project. (b) The school district complies with the required labor compliance and contractor qualification standards. (c) The amount of the grant applied for, together with any matching contribution, will meet all of the costs of implementing the energy efficiency upgrade project. (d) The school district allows the office to audit all expenditures made with grant funds. (e) The school district agrees to track and report to the office the number of jobs created as a result of the energy efficiency upgrade project. (f) The school district reports to the office the operational cost savings resulting from the energy efficiency upgrade project, both at the district level, in aggregate, and school facility site level. 26235. In evaluating applications for grants that meet the requirements of Section 26234, the office shall assign higher priority to applications that meet each of the following criteria: (a) The energy efficiency upgrade project is located at a school facility with an above average energy consumption, as determined by the benchmark pursuant to subdivision (b) of Section 26233. (b) The energy efficiency upgrade project is located in an economically disadvantaged school community, based on the percentage of pupils eligible for the federal free and reduced price lunch program. (c) The energy efficiency project is located in an area with an above average unemployment rate as compared to the statewide unemployment rate. (d) The school district has actively involved pupils at the school facility site in the planning and design of the energy efficiency upgrade project. (e) The energy efficiency upgrade project will enhance workforce development and employment opportunities, utilize members of the California Conservation Corps or certified local conservation corps, if available, or accommodate learning opportunities for school pupils or at-risk youth in the community. (f) The energy efficiency upgrade project is a joint partnership between two or more agencies, including, but not limited to, other school districts, nonprofit organizations, and local government agencies to maximize the investment and benefit to the public.