California Energy Commission COMMISSION REPORT Proposition 39: California Clean Energy Jobs Act, K-12 Program and Energy Conservation Assistance Act 2013-2015 Progress Report California Energy Commission Edmund G. Brown Jr., Governor March 2016 | CEC-400-2016-004-CMF California Energy Commission Robert B. Weisenmiller, Ph.D. Chair Karen Douglas, J.D. Andrew McAllister David Hochschild Janea A. Scott Commissioners Haile Bucaneg Joji Castillo Amir Ehyai Cheng Moua Elizabeth Shirakh Primary Author(s) Elizabeth Shirakh Project Manager Armand Angulo Acting Office Manager LOCAL ASSISTANCE & FINANCING OFFICE Dave Ashuckian, P.E. Deputy Director EFFICIENCY DIVISION Robert P. Oglesby Executive Director DISCLAIMER Staff members of the California Energy Commission prepared this report. As such, it does not necessarily represent the views of the Energy Commission, its employees, or the State of California. The Energy Commission, the State of California, its employees, contractors and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this report; nor does any party represent that the uses of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the Energy Commission nor has the Commission passed upon the accuracy or adequacy of the information in this report. ABSTRACT The California Energy Commission prepared this report to the Citizens Oversight Board in accordance with Proposition 39 (2012), Senate Bill 73 (Committee on Budget and Fiscal Review, Chapter 29, Statutes of 2013), adopted by the Legislature and signed into law by Governor Edmund G. Brown Jr. on June 27, 2013. To alleviate the burden to local educational agencies (LEAs), information required to be reported to the Citizens Oversight Board from LEAs is contained in this report and detailed in the appendices. Keywords: Proposition 39, California Clean Energy Jobs Act, Job Creation Fund, Senate Bill 73, Citizens Oversight Board, energy efficiency, clean energy, conservation, school, local educational agency Bucaneg, Haile, Joji Castillo, Amir Ehyai, Cheng Moua, Elizabeth Shirakh. 2016. Proposition 39: California Clean Energy Jobs Act, K-12 Program and Energy Conservation Assistance Act 2013-2015 Progress Report. California Energy Commission, Energy Efficiency Division. Publication Number: CEC-400-2016-004-CMF. i TABLE OF CONTENTS Page Abstract ................................................................................................................................................. i Table of Contents............................................................................................................................... ii List of Figures .................................................................................................................................... iii List of Tables ...................................................................................................................................... iii EXECUTIVE SUMMARY.................................................................................................................... 5 Purpose of the Report ....................................................................................................................................... 5 Clean Energy Jobs Act Overview .................................................................................................................... 5 Appropriation Summary................................................................................................................................... 6 Results ................................................................................................................................................................... 6 Program Challenges ........................................................................................................................................... 7 CHAPTER 1: Proposition 39 K-12 Program .................................................................................... 9 Background ....................................................................................................................................... 9 Implementation Overview .......................................................................................................... 10 Summary of Approved Energy Expenditure Plans ................................................................ 12 Energy Planning Funding Summary ........................................................................................................... 14 Funding Approved by Type of LEA ............................................................................................................ 14 Eligible Energy Measures ............................................................................................................ 15 Cost-Effectiveness Criteria: Savings-to-Investment Ratio (SIR) .......................................... 16 LEA Reporting to the Energy Commission .............................................................................. 17 Reporting Schedule ......................................................................................................................................... 17 Final Project Completion Reports ............................................................................................................... 17 Annual Progress Reports ............................................................................................................................... 18 CHAPTER 2: Identifying Energy Savings ..................................................................................... 20 Complexities of Measuring Energy Savings ............................................................................ 20 How Does the K-12 Program Identify Energy Savings? ........................................................ 20 CHAPTER 3: Energy Conservation Assistance Act-Education Subaccount (ECAA-Ed) ...... 22 ECAA-Ed Financing Program ...................................................................................................... 22 Background ....................................................................................................................................................... 22 ECAA-Ed Funding............................................................................................................................................. 22 Approved and Completed Loans................................................................................................................. 22 Remaining Funds ............................................................................................................................................. 23 Bright Schools Technical Assistance Program ....................................................................... 23 Background ....................................................................................................................................................... 23 Bright Schools Funding .................................................................................................................................. 23 Technical Assistance ...................................................................................................................................... 23 Status of Proposition 39 Funding ............................................................................................................... 24 ii APPENDIX A: ...................................................................................................................................... 25 K-12 Program − 2014/15 Final Project completion reports.................................................... 25 APPENDIX B: ...................................................................................................................................... 26 K-12 Program − 2014/15 annual progress report data (completed projects) .................. 26 APPENDIX C: ...................................................................................................................................... 27 K-12 Program − 2014/15 annual progress report data .......................................................... 27 APPENDIX D: ...................................................................................................................................... 28 Energy Conservation assistance act−education subaccount (ecaa-ed) ................................ 28 APPENDIX E: ...................................................................................................................................... 29 BRIGHT SCHOOL PROGRAM SUMMARY ...................................................................................... 29 APPENDIX F: LIST OF ACROMYMS ............................................................................................... 30 LIST OF FIGURES Page Figure 1: Proposition 39 K-12 Program – LEA Funding Distribution and Funding Allocation .............................................................................................................................................. 9 Figure 2: K-12 Program Timeline (First Fiscal Year 2013-2014) ............................................ 11 Figure 3: K-12 Program Timeline (Second Fiscal Year 2014-2015) ........................................ 12 Figure 4: Proposition 39 K-12 Program Overall Funding Status ............................................ 13 Figure 5: K-12