California Proposition 39

Funding More Energy-Efficient Schools

California has committed $550 million a year through 2018 to promote a higher standard of energy efficiency for our schools. Although energy costs account for only 2-4% of school expenditures, they impact about 16% of controllable operational costs. Energy is also one of the few expenses that you can reduce without negatively impacting classroom instruction. Right now, K-12 schools can participate to receive funding energy-smart upgrades, retrofits, and enhancements.

Electricity Use in Schools K-121

Graph of electricity use in schools K-12

In order to receive funds, your Local Educational Agency (LEA) must start by coordinating directly with the Energy Commission to provide 12 months of historical electricity and gas usage and billing data for the school facility or site. 

Expose as Block
No

Each LEA must benchmark its facilities to determine the Energy Use Intensity (EUI) of any school or site that receives Proposition 39 program funding. Benchmarks provide important information about a building’s energy usage. Here are the steps:

  • Gather energy data and summarize
  • Establish energy use density
  • Create a benchmarking report and rank schools
  • Identify highest energy users
Expose as Block
No

Your LEA will need to prioritize projects based on several considerations:

  • Age of buildings
  • The proportion of pupils eligible for funds under Title I of the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.) at a particular school site
  • Time since last facility upgrade
  • Hours of operation (including year around/traditional schedule). The school’s energy intensity as determined from an energy rating or benchmark
  • Estimated return on investment
  • Each project’s potential for energy demand reduction
  • Health and safety improvements – non energy-related benefits
  • The ability of an individual or collective project to facilitate matriculation of local residents into state-certified apprenticeship programs
  • The expected number of trainees and direct full-time employees
  • Ability to enhance workforce development

LEAs should select energy efficiency and demand-reduction projects first, including:

  • Energy efficiency
  • Renewable energy
  • Non-renewables – fuel cell

LEAs choose one of three options to identify energy projects:

  • Basic energy survey
  • ASHRE II audit – engineering firm, vendors, hire energy manager
  • Other tools: Data analytics

Projects must achieve a minimum Savings to Investment Ratio (SIR) of 1.05 to be approved for a Proposition 39 award. This ratio compares the investment the LEA will make now with the amount of dollar savings the LEA will obtain from the project’s energy savings. The SIR calculator is available at the Energy Commission’s Proposition 39 website.

To use the SIR calculator, you will need the following input values for each proposed project:

  • Annual energy savings (kWh, therms, gallons)
  • Demand savings (kW)
  • Annual energy cost savings
  • Project installation cost
  • Rebates and other financial incentives
  • Any other matching grants
Expose as Block
No

The energy expenditure plan is the application an LEA uses to request Proposition 39 program award funds to implement proposed energy projects. The completed energy expenditure plan needs to be submitted and approved by the Energy Commission for the LEA to receive award funds. The Energy Commission will post notice of project approval on the Prop 39 website. LEAs may use planning funds as they choose from the four approved activity categories:

  • Energy Audit/Energy Surveys/Data Analytics
  • Prop 39 Program Assistance
  • Energy Manager
  • Energy-Related Training
Expose as Block
No

LEAs are required to submit a quarterly progress status report for each of their approved energy expenditure plans to the Energy Commission, until all projects within the energy expenditure plans are completed.

  • Final gross project cost
  • Estimated energy savings
  • Annual progress reports
  • Nameplate rating of new clean generation installed
  • Number of full time trainees
  • Amount of time between awarding the financial assistance and completion of project or training
  • The facility’s energy intensity before and after project completion based on benchmarking
  • All projects subject to audit

Rebates & Incentive Programs

Express Solutions

Take advantage of financial incentives for qualifying new equipment installations and retrofits.

Customized Solutions

Provides financial incentives for solutions not available in Express Solutions, and free tools available to accurately calculate energy savings.

On-Bill Financing (OBF)

Apply for interest-free financing for installing qualifying energy efficient equipment to be repaid through monthly SCE bills.

Demand Response (DR) Programs

When your school participates in one of more of our DR programs, you can reduce your school’s energy use in return for lower energy costs and help prevent power shortages.

Automated Demand Response (Auto-DR)

You can automate your participation and help maximize your financial benefits in many of our DR programs by using a load control device or Energy Management System (EMS). Technology incentives are available for the purchase and installation of qualifying equipment.

Permanent Load Shifting Incentive

If your cooling load is considerable, you may qualify for incentives that can help shift your energy use to off-peak hours by installing a Thermal Energy Storage system. If you qualify, you may be eligible for incentives for each kilowatt shifted.

Solar and Self-Generation

The California Solar Initiative (CSI) and the Self Generation Incentive Program (SGIP) provide incentives to help offset the cost of installation for customers purchasing solar electric generating systems and/or advanced energy storage.

Savings By Design

Savings by Design (SBD) provides resources and incentives for energy efficient design and construction to help increase operational efficiency and reduce energy costs.

Resources We Provide

We can help you identify simple modifications to your school that can have a significant effect on reducing your energy use and costs.

Benchmarking: ENERGY STAR® Portfolio Manager

Use free online free online information and access to the U.S. Environmental Protection Agency’s tool to help compare your school’s energy usage against similar schools nationwide, set energy goals, track and report improved energy performance and savings over time.

Energy Education Centers

We offer free training workshops and seminars to help ensure your educators and staff are knowledgeable on the latest programs and technologies that can help create more opportunities for energy savings.

Retrocommissioning (RCx)

We’ll help you identify and implement ways to improve your building’s individual systems, with a focus on heating, air conditioning and ventilation (HVAC) solutions. You can also receive training and incentives for energy-saving improvements.

Heating Ventilation & Air Conditioning (HVAC) Optimization

Bring your school up to the new standard in HVAC management to ensure that your equipment operates reliably, efficiently, and cost-effectively, while improving comfort and productivity. Simply contact a contractor and discuss what plan works best for your system.

Success Stories

Other schools in Southern California have achieved significant efficiency savings and updates using rebates, incentives and services we offer. Read the case study about how Chino Valley Unified School District saved an estimated $1 million and reduced annual electricity costs by 22.62% by taking advantage of programs and upgrades.

Prop 39 Schedule

Proposition 39 Program implementation is already underway. The schedule is as follows:

Additional Resources

Frequently Asked Questions