FOR IMMEDIATE RELEASE: Monday, June 10, 2013

Prop 39 Implementation Agreement Reached
Governor and Senator De León Agree on Job Creation and Energy Savings Plan for Schools
SACRAMENTO, CA – Senator Kevin de León (D-Los Angeles) announced today that a

deal to implement Prop 39 was struck last night with Governor Brown that will help create thousands of construction jobs in California and help school districts reduce their energy bills through implementation of energy retrofits statewide. The deal involves a poverty-weighted allotment of Prop 39 funds to each school district and community college district based on their average daily attendance (ADA). The districts would be responsible for submitting applications for energy saving projects based on criteria established by the California Energy Commission and to have those applications approved before receiving funds. Senator De León succeeded in achieving a solution that directs funds to communities in need and that requires benchmarking, measurement and verification to ensure the projects are indeed accomplishing energy savings and creating jobs as opposed to the Governor’s initial plan, which required no outcome verification. “The Governor shared our vision for helping schools and I’m pleased we were able to come to an agreement on how best to accomplish that,” Senator De León said. “The most important thing to my Prop 39 campaign co-chair Tom Steyer and I is that we have a program that involves strict accountability so we can report back to taxpayers exactly what they received for their investment of these public dollars.” Key features of the agreement include:  Measureable results – Ensures the state achieve measureable results in additional jobs and energy savings as expected by the voters.  Accountability – Provides the necessary level of accountability so that the $2.5 billion investment is not squandered away on deferred maintenance but rather on meaningful energy projects that will result in actual savings for schools.  Need – Supports our efforts to help our school communities that are most in need by weighting the allocations based on participation in the Free and Reduced Lunch program.  Oversight – All districts must “apply” for the funds and have applications approved prior to receiving funding.  Adequate Reporting – Once projects are complete, districts must report on actual jobs created and energy saved based on measurement standards established by the State.  Extending Program Beyond 5-year Sunset – A revolving loan fund will be established each year to provide financing assistance. The repayment of these funds will ensure the program is available in later years for continued investments in energy savings.

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Deep Retrofits – Requires large school districts to invest at least half of eligible funds towards projects of $250,000 or more. Supports Small Districts – Allows smallest districts to bundle two years of their annual allotment in year one to support greater energy savings projects. Annual Review – Requires an annual legislative review permitting adjustments as needed.

Proposition 39 was passed in November with more than 60% support. It closed a corporate tax loophole that only benefited out-of-state corporations. It will generate more than $1 billion for California with half of the money going to the general fund and half toward measures designed to create jobs and save energy. The Yes on Prop 39 campaign was co-chaired by Senator De León, Tom Steyer and former U.S. Secretary of State George Schulz. ###