California Energy Commission COMMISSION REPORT Proposition 39: California Clean Energy Jobs Act, K-12 Program and Energy Conservation Assistance Act Program, 2016-2017 Progress Report California Energy Commission Edmund G. Brown Jr., Governor January 2018 | CEC-400-2018-001 California Energy Commission Robert B. Weisenmiller, Ph.D. Chair Commissioners Karen Douglas, J.D. J. Andrew McAllister, Ph.D. David Hochschild Janea A. Scott, Ph.D. Marites Antonio Haile Bucaneg Joji Castillo Jim Holland Cheng Moua Armando Ramirez David Velazquez Primary Authors Jim Holland Project Manager Elise Brown Office Manager LOCAL ASSISTANCE AND FINANCING OFFICE Dave Ashuckian, P.E. Deputy Director EFFICIENCY DIVISION Drew Bohan 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, information required to be reported to the Citizens Oversight Board from local educational agencies is contained in this report and detailed in the appendices. This report summarizes outcomes from the start of the Proposition 39 K-12 Program (December 19, 2013) through the end of the 2016-17 fiscal year (June 30, 2017). During that reporting period, the Energy Commission approved 1,452 energy expenditure plans submitted by 1,374 local educational agencies, representing $1.06 billion in project funding and benefiting 5,238 project school sites. Much of the information contained in this report, such as energy savings and the amount of Proposition 39 funding spent, is self-reported data from the participating local educational agencies. One hundred seventy-four energy expenditure plans have been submitted with reported postinstallation energy consumption and savings; 250 energy expenditure plans are also complete but LEAs are still collecting the required 12 months postinstallation energy consumption data, and another 980 energy expenditure plans include projects that are still under construction. In addition, this progress report summarizes outcomes for the Energy Conservation Assistance Act-Education Subaccount Financing Program and the Bright Schools Program. For fiscal year 2013-14 to fiscal year 2016-17, the Energy Commission approved 32 loans totaling $49.1 million. During the same period, the Bright Schools Program provided technical assistance to 165 local educational agencies and community colleges. 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, financing, technical assistance Antonio, Marites, Haile Bucaneg, Joji Castillo, Jim Holland, Cheng Moua, Armando Ramirez, and David Velazquez. 2018 Proposition 39: California Clean Energy Jobs Act, K-12 Program and Energy Conservation Assistance Act 2016-2017 Progress Report. California Energy Commission, Efficiency Division. Publication Number: CEC-400-2018-001. i TABLE OF CONTENTS Page Abstract ............................................................................................................................................... i Table of Contents ............................................................................................................................. ii List of Figures .................................................................................................................................. iv List of Tables ..................................................................................................................................... v EXECUTIVE SUMMARY .................................................................................................................... 1 Background and Purpose ................................................................................................................................. 1 Cumulative Results........................................................................................................................................... 1 Identifying Energy Savings .............................................................................................................................. 6 Program Challenges ......................................................................................................................................... 7 Energy Conservation Assistance Act—Education Financing Program .......................................................... 9 CHAPTER 1: Proposition 39 K-12 Program ....................................................................................... 11 Background ..................................................................................................................................................... 11 Appropriations ............................................................................................................................................... 12 Allocations by Tier Level ................................................................................................................................ 13 Disadvantaged Local Educational Agencies .................................................................................................. 14 Approved Eligible Energy Measures ............................................................................................................. 15 LEA Reporting Results ...................................................................................................................... 16 Reporting Schedule ........................................................................................................................................ 16 Cost-Effectiveness Criteria: Savings-to-Investment Ratio ........................................................................... 16 Identifying Energy Savings ............................................................................................................................ 17 Summary ......................................................................................................................................................... 18 Implementation Overview ............................................................................................................... 20 Program Implementation Summary ............................................................................................................ 20 Program Implementation Updates and Resources ....................................................................................... 21 Challenges .......................................................................................................................................................23 Senate Bill 110 ................................................................................................................................................. 25 CHAPTER 2: Energy Conservation Assistance Act—Education Subaccount ................................... 26 Financing Program ............................................................................................................................26 Background .................................................................................................................................................... 26 ECAA-Ed Funding ......................................................................................................................................... 26 Approved Loans ............................................................................................................................................. 26 Final Project Completion Report ................................................................................................................... 27 Remaining Funds ........................................................................................................................................... 27 Repayments and Defaults .............................................................................................................................. 27 ECAA-Ed Financing Example—Oroville Union High School District ......................................................... 28 ECAA-Ed Financing Example—Sanger Unified School District ................................................................. 29 Bright Schools Program ................................................................................................................... 30 ii Background .................................................................................................................................................... 30 Funding 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