Chapter 2Clean Energy Job Creation Fund

Section § 26205

Explanation

The Clean Energy Job Creation Fund is a special fund in California that supports projects to increase jobs by improving energy efficiency and clean energy generation. The fund received $550 million annually from 2013 to 2018, except as noted in Section 26208.

The money is used in three main areas: first, it helps retrofit and improve energy systems in public schools, universities, colleges, and other public facilities, offering financial help like loans or other funds. Second, it provides job training programs for disadvantaged groups, like youth and veterans, focusing on energy-related projects. Lastly, it aids local governments in developing programs like PACE, which fund energy-efficient retrofits, with a focus on maximizing job creation and energy savings. These programs may include loan repayments to sustain future projects.

The Clean Energy Job Creation Fund is hereby created in the State Treasury. Except as provided in Section 26208, the sum of five hundred fifty million dollars ($550,000,000) shall be transferred from the General Fund to the Job Creation Fund in fiscal years 2013–14, 2014–15, 2015–16, 2016–17, and 2017–18. Moneys in the fund shall be available for appropriation for the purpose of funding projects that create jobs in California improving energy efficiency and expanding clean energy generation, including all of the following:
(a)CA Public Resources Code § 26205(a) Schools and public facilities:
(1)CA Public Resources Code § 26205(a)(1) Public schools: Energy efficiency retrofits and clean energy installations, along with related improvements and repairs that contribute to reduced operating costs and improved health and safety conditions, on public schools.
(2)CA Public Resources Code § 26205(a)(2) Universities and colleges: Energy efficiency retrofits, clean energy installations, and other energy system improvements to reduce costs and achieve energy and environmental benefits.
(3)CA Public Resources Code § 26205(a)(3) Other public buildings and facilities: Financial and technical assistance including revolving loan funds, reduced interest loans, or other financial assistance for cost-effective energy efficiency retrofits and clean energy installations on public facilities.
(b)CA Public Resources Code § 26205(b) Job training and workforce development: Funding to the California Conservation Corps, Certified Community Conservation Corps, YouthBuild, and other existing workforce development programs to train and employ disadvantaged youth, veterans, and others on energy efficiency and clean energy projects.
(c)CA Public Resources Code § 26205(c) Public-private partnerships: Assistance to local governments in establishing and implementing Property Assessed Clean Energy (PACE) programs or similar financial and technical assistance for cost-effective retrofits that include repayment requirements. Funding shall be prioritized to maximize job creation, energy savings, and geographical and economic equity. Where feasible, repayment revenues shall be used to create revolving loan funds or similar ongoing financial assistance programs to continue job creation benefits.
Clean Energy Job Creation Fund energy efficiency projects clean energy generation job creation public schools universities energy improvements public facilities retrofits youth job training veteran workforce development Property Assessed Clean Energy programs financial assistance for energy projects revolving loan funds energy savings geographical equity economic equity
(Added November 6, 2012, by initiative Proposition 39, Sec. 2.)

Section § 26205.5

Explanation

This law outlines how remaining funds from the Job Creation Fund will be distributed if local educational agencies haven't submitted energy expenditure plans by March 1, 2018. It specifies that $75 million will go to grants or loans for school bus retrofits or replacements, prioritizing older buses and those in disadvantaged areas. Another $100 million will support low or no-interest loans for eligible projects, emphasizing schools with high numbers of students eligible for free meals, energy savings, and geographic diversity.

Remaining funds are allocated to schools based on size, with specific percentages for smaller and larger schools. Schools must use the funds within nine months. Definitions clarify that 'Energy Commission' refers to the State Energy Resources Conservation and Development Commission and 'local educational agency' includes school districts and charter schools.

(a)CA Public Resources Code § 26205.5(a) Of the moneys provided to the Job Creation Fund for purposes of paragraph (1) of subdivision (a) of Section 26205, the available remaining funds, which are the funds allocated to a local educational agency that has not submitted an energy expenditure plan, as determined by the Energy Commission as of March 1, 2018, shall be appropriated as follows:
(1)CA Public Resources Code § 26205.5(a)(1) The first seventy-five million dollars ($75,000,000) shall be provided to school districts, county offices of education, and joint power authorities currently operating home-to-school transportation programs on behalf of local educational agencies for grants or loans for schoolbus retrofit or replacement through a program administered by the Energy Commission, in consultation with the State Air Resources Board.
(A)CA Public Resources Code § 26205.5(a)(1)(A) Priority shall be given to school districts, county offices of education, and joint power authorities currently operating home-to-school transportation programs on behalf of local educational agencies operating the oldest schoolbuses or schoolbuses operating in disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, as determined by the State Air Resources Board, and to school districts, county offices of education, or joint power authorities currently operating home-to-school transportation programs on behalf of local educational agencies with a majority of students eligible for free or reduced-price meals in the prior year.
(B)CA Public Resources Code § 26205.5(a)(1)(B) Any schoolbuses that have been replaced pursuant to this paragraph shall be scrapped.
(C)CA Public Resources Code § 26205.5(a)(1)(C) A local air district may administer funding provided pursuant to this paragraph, if authorized by the Energy Commission.
(2)CA Public Resources Code § 26205.5(a)(2) The next one hundred million dollars ($100,000,000) shall be deposited into the Education Subaccount, created pursuant to Section 26227, for the purpose of low-interest and no-interest revolving loans and loan loss reserves for eligible projects and technical assistance on a competitive basis. Priority shall be given to local educational agencies based on the percentage of students eligible for free or reduced-price meals in the prior year, energy savings, geographic diversity, and diversity in the size of the local educational agencies’ student populations. If a local educational agency has a project eligible for a loan under this paragraph, the maximum loan amount for the project shall be the project cost reduced by both of the following, as applicable:
(A)CA Public Resources Code § 26205.5(a)(2)(A) The amount of any grant awarded for the project pursuant to paragraph (3).
(B)CA Public Resources Code § 26205.5(a)(2)(B) Any state, federal, or local incentives that have been provided for the project.
(3)Copy CA Public Resources Code § 26205.5(a)(3)
(A)Copy CA Public Resources Code § 26205.5(a)(3)(A) (i) The remaining moneys, if any, shall be provided to local educational agencies in accordance with subdivision (b) of Section 26227.2, as implemented by the Energy Commission, in consultation with the State Department of Education, as follows:
(I)CA Public Resources Code § 26205.5(a)(3)(A)(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.
(ii)CA Public Resources Code § 26205.5(a)(3)(A)(ii) The Energy Commission may adjust the funding allocations specified in clause (i) and may add additional categories based on average daily attendance to further the purposes of Section 26227.2.
(B)CA Public Resources Code § 26205.5(a)(3)(A)(B) The Energy Commission shall facilitate local educational agency pursuit of funding under this paragraph and from the State Energy Conservation Assistance Account through coordinated information, documentation, and review processes regarding the project.
(C)CA Public Resources Code § 26205.5(a)(3)(A)(C) For purposes of this paragraph, average daily attendance shall be those numbers as reported in the prior year, as determined by the State Department of Education.
(b)CA Public Resources Code § 26205.5(b) A local educational agency that receives moneys pursuant to this section shall encumber those moneys within nine months of allocation.
(c)CA Public Resources Code § 26205.5(c) For purposes of this section, the following definitions apply:
(1)CA Public Resources Code § 26205.5(c)(1) “Energy Commission” means the State Energy Resources Conservation and Development Commission.
(2)CA Public Resources Code § 26205.5(c)(2) “Local educational agency” means a school district, county office of education, charter school, or state special school.
Job Creation Fund energy expenditure plans school bus replacement grants loans disadvantaged communities free or reduced-price meals Energy Commission low-interest loans educational agency funding fund allocation technical assistance loan loss reserves local educational agencies school transportation programs
(Amended by Stats. 2018, Ch. 32, Sec. 127. (AB 1808) Effective June 27, 2018.)

Section § 26206

Explanation

This law outlines the criteria for using money from California's Job Creation Fund on energy projects. Existing state and local agencies will select and oversee projects based on job creation and energy benefits. Projects must be cost-effective, meaning their benefits should outweigh the costs over time, and they may also consider additional benefits like health and safety. Contracts are required to detail project specifics, costs, and energy savings, and all projects must undergo an audit. Administrative costs cannot exceed 4% of the total funding. Funds are only available to agencies experienced in energy management. Coordination with the California Energy Commission and California Public Utilities Commission is required to avoid redundant efforts. Eligible costs cover technical assistance and reducing barriers like design, permitting, or financing delays.

The following criteria apply to all expenditures from the Job Creation Fund:
(a)CA Public Resources Code § 26206(a) Project selection and oversight shall be managed by existing state and local government agencies with expertise in managing energy projects and programs.
(b)CA Public Resources Code § 26206(b) All projects shall be selected based on in-state job creation and energy benefits for each project type.
(c)CA Public Resources Code § 26206(c) All projects shall be cost effective: total benefits shall be greater than project costs over time. Project selection may include consideration of non-energy benefits, such as health and safety, in addition to energy benefits.
(d)CA Public Resources Code § 26206(d) All projects shall require contracts that identify the project specifications, costs, and projected energy savings.
(e)CA Public Resources Code § 26206(e) All projects shall be subject to audit.
(f)CA Public Resources Code § 26206(f) Program overhead costs shall not exceed 4 percent of total funding.
(g)CA Public Resources Code § 26206(g) Funds shall be appropriated only to agencies with established expertise in managing energy projects and programs.
(h)CA Public Resources Code § 26206(h) All programs shall be coordinated with the California Energy Commission and the California Public Utilities Commission to avoid duplication and maximize leverage of existing energy efficiency and clean energy efforts.
(i)CA Public Resources Code § 26206(i) Eligible expenditures include costs associated with technical assistance, and with reducing project costs and delays, such as development and implementation of processes that reduce the costs of design, permitting or financing, or other barriers to project completion and job creation.
Job Creation Fund energy projects in-state job creation cost-effective projects project audits program overhead costs technical assistance cost California Energy Commission California Public Utilities Commission project management contract requirements energy savings non-energy benefits agency expertise reduce project delays
(Added November 6, 2012, by initiative Proposition 39, Sec. 2.)

Section § 26208

Explanation

This law states that if the Department of Finance and the Legislative Analyst determine that the changes to certain tax codes bring in less than $1.1 billion in additional revenue each year, the amount transferred to the Job Creation Fund will be reduced. Specifically, the fund will get half of whatever the actual increase in revenue is.

If the Department of Finance and the Legislative Analyst jointly determine that the estimated annual increase in revenues as a result of the amendment, addition, or repeal of Sections 25128, 25128.5, 25128.7, and 25136 of the Revenue and Taxation Code is less than one billion one hundred million dollars ($1,100,000,000), the amount transferred to the Job Creation Fund shall be decreased to an amount equal to one-half of the estimated annual increase in revenues.
Revenue increase Job Creation Fund Department of Finance Legislative Analyst tax code changes Section 25128 Section 25128.5 Section 25128.7 Section 25136 revenue estimation fund transfer reduction tax amendments revenue threshold half revenue transfer fiscal adjustments
(Added November 6, 2012, by initiative Proposition 39, Sec. 2.)