What s Inside... January 2013

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January 2013 School Energy NewsWire A Newsletter for Efficient & Climate Friendly Schools School Energy Coalition Recommendations in Governor s Proposed State Budget We are extremely pleased to report that the just-released Governor s Proposed State Budget states that ALL of the Proposition 39 funding go to schools and community colleges on a per ADA basis. This language is in no small part a result of our discussions and policy paper we submitted to the Governor s staff and others. The Governor s Budget also lists the State Department of Education (CDE) as the administrating agency, something we are very supportive of. Other state proposals are in motion to implement Proposition 39 funding. The Legislature will now weigh in with their views on how the Proposition 39 funding should be spent, as will other interested parties such as local governments and Universities that were left out of the Governor s proposal. The Legislative Analyst s Office (LAO) has expressed some concerns over the Governor s proposal. In the LAO s Budget Analysis, released January 14, 2013, issues were raised with all of the Proposition 39 funding going to schools and with the revenue being applied to the Proposition 98 calculation. This assumes that all needs are equal for energy efficiency projects and ignores size, age, climate zone, etc., according to the LAO. Proposition 39 language stated that the Clean Energy Jobs Fund be created with the additional tax revenue appropriated to agencies with established expertise in managing energy projects and programs, and that funding is to be coordinated with the CEC and CPUC. The LAO points out that the Governor s proposal gives program administration to CDE with the option of consulting with CEC and CPUC. Not the least of the moving parts with regard to Proposition 39 are the bills that were introduced early this session: AB 39 (Skinner) and SB 39 (DeLeon). We have also included a side-by side of the legislation and the Governor s proposal on page 2 of the NewsWire. Please contact me with your thoughts on these very different perspectives on the implementation of this new revenue at aferrera@m-w-h.com. We need your help and participation - please spread the word and encourage your school district colleagues to join SEC as we continue to be leaders in this discussion. We need a strong membership force to show the Capitol we are ready to run with these funds and to make school energy projects happen throughout the state. What s Inside... Proposition 39 Side-by-Side... 2 SB 39 Statewide Hearing Dates.3 Important Meeting Dates...3 Manteca Unified SD...4 SEC New Members...5 Membership Application.. 6

Page 2 Proposition 39 Governor AB 39 SB 39 Summary $450 million available to K 14 through the State Budget Process. $400.5 million for K 12 and $49.5 million to community colleges in first year on a per ADA/FTS Basis Would continuously appropriate to the California Energy Commission (CEC) for this purpose each year in the amount that is transferred to the Job Creation Fund. Would appropriate moneys to the Office of Public School Construction from the fund for the purposes of awarding energy efficiency grants for energy efficiency upgrades. Efficiency vs. Generation Efficiency first then potential for generation to be determined. Both after certain level of efficiency. Efficiency only. Administering Agency CDE would administer and may consult with the CEC and CPUC. CEC would administer and ensure that the prescribed criteria are satisfied. The Office of Public School Construction would handle accountability. Funding Process Per ADA No application. To be defined. Existing Programs. Grants, no interest loans, or other financial assistance to an eligible institution. Yet To Be Defined. Job Creation Yet To Be Defined. This bill would require moneys for job training and workforce development to be available to the California Conservation Corps (CCC), Certified Community Conservation Corps, Youth Build, and other workforce development programs. Energy Efficiency Project will enhance workforce development and employment opportunities, utilize members of the CCC or certified local conservation cops or accommodate learning opportunities for pupils or at risk youth in the community. Equity Provisions Yet To Be Defined. Yet to be defined. The legislation would set forth certain criteria to be used to prioritize projects to be funded from moneys in the Job Creation Fund relative to public schools, school districts, public colleges and universities, and other public buildings and facilities. Located at schools with an above average energy consumption. Economically disadvantaged criteria TBD and above average statewide unemployment rate. Public Private Partnerships None defined per ADA Public private partnerships upon appropriation by the Legislature to establish and implement Property Assisted Clean Energy (PACE) programs or similar financial and technical assistance. Joint partnership between two or more agencies including but not limited to other school districts, non profit corporations and local government agencies to maximize investment and public benefit. Anna Ferrera, Executive Director School Energy Coalition aferrera@m w h.com

Page 3 Important Meeting Dates January 29, 2013 - SEC Conference Call 11:00 a.m. - Contact Sara for more information at skahoalii@m-w-h.com February 26, 2013 - SEC General Issues Meeting - Prop 39 Info! C.A.S.H. 34th Annual Conference Sacramento Convention Center - Rm 317/318 Tuesday from 2:30 p.m. to 4:30 p.m. March 2013 - Date TBD - Webinar on School Energy Issues School Energy Project information and Prop 39 legislation AB-39 (Skinner) and SB-39 (De Leon) May 2013 - Date TBD - School Energy Emporium A wealth of information will be provided on best practices for school energy projects, financing, and the progress of Proposition 39 legislation implementation. Proposition 39 sets aside up to $550 million annually for public energy projects, specifically including schools and community colleges, for the next five years. SB 39 (DeLeon) Statewide Hearing Dates In January Senator De León will hold Senate Appropriations Committee informational hearings around California to seek input on his bill which allocates funds for energy efficiency only. We hope you will attend and convey your thoughts on Proposition 39 implementation to the Senator. If you need more information on Proposition 39 implementation, please email Anna at aferrera@m-w-h.com Bring your school s or district s energy plans, present or future to illustrate need and the number of jobs that could be created. The hearing dates and locations follow: January 23, 2013 Independence High School - Multi-Purpose Room 1776 Educational Park Drive, San Jose, California 95133 11 a.m.-2:00 p.m. January 25, 2013 Perkins Elementary School - Auditorium 1770 Main Street, San Diego, CA 92113 2:00 p.m. 5:00 p.m. There will also be a hearing in Los Angeles, date to be determined.

Page 4 Manteca Unified School District is Reducing Energy Usage and Costs! Solar PV Systems and Energy Efficiency Program Will Save School District $25 Million Over 25 Years MANTECA, Ca. The Manteca Unified School District (MUSD) is increasing its energy efficiency efforts with the installation of solar photovoltaic (PV) systems at 26 school sites within the school district. MUSD has already saved millions in energy costs over the last few years through an aggressive energy conservation program targeted at reducing energy consumption at school sites. Now MUSD is ready to move forward with additional savings through the installation of a variety of renewable energy systems throughout the school district. Construction is planned to start in winter 2012 and be completed and operational by winter 2013. The project entails installing solar photovoltaic (PV) systems at 26 school sites within the school district, including ground mount and parking lot solar installations as well as small wind turbines. The solar PV systems have been sized according to the current energy usage at each school site, while the small wind turbines will be used as demonstration projects for educational purposes. The project will also include interior and exterior lighting upgrades and other energy conservation measures that will help further reduce the overall energy usage at the school district. The solar PV systems are expected to produce 6.72 million kwh per year which is about half of the District s annual energy consumption. Through Net Energy Metering (NEM), the energy produced by the solar PV systems will be used to offset site usage and any excess energy will be exported to the grid. Since solar PV systems produce energy in the middle of the day when it is worth the most, the savings realized for the District are greater than 50%. In total, the solar systems and lighting upgrades are expected to reduce the District s utility bill by approximately 65%! There are no up-front costs for the District and MUSD will not be providing any general fund dollars for the solar installations or lighting upgrades; instead, the project will be funded by $30 million in 0% interest Qualified Zone Academy Bond (QZAB). MUSD is taking advantage of this program now as low interest QZAB funding as Federal budget pressures threaten to cancel the program. California Solar Initiative (CSI) rebates, which also significantly help achieve the savings, are scheduled to sunset soon. In total, the project is expected to generate over $25 million in savings over 25 years! Several MUSD staff members are part of the team that has been working hard to bring this Renewable Energy Efficiency Project together to help the District secure the best results in its energy efficiency and cost saving efforts. Team members include: Susan Bell Director of Facilities (project lead); Victoria Brunn Energy Coordinator; Aaron Bowers Construction/Energy Technician; David Burke Senior Director of Operations; and Jason Messer Superintendent. As an additional element to this project, MUSD is building a Regional Environmental Studies Center (Center) to educate students and faculty on renewable energy. The Environmental Studies Center will provide an amazing opportunity for students to learn the value of energy conservation and the applied principles of renewable energy in hopes to promote and inspire the next generation of engineers and scientists. The project will also include the following equipment and tools: o American Modular Systems (AMS) GEN 7 energy efficient modular building to house the Environmental Studies Center (ESC) and Green Fabrication Academy (Academy) at the District Office o Monitors and webpages for display of solar system outputs at each solar school site o Small wind turbines o Electric vehicle charging stations at the District Office

Page 5 IEC Power and IES will be donating a portion of their time to support the Center and Academy in the development of the curriculum, holding seminars and Planet Party events, and as ongoing educational partners. For more information, please go to MUSD s website at http://www.mantecausd.net/ where you can view pictures of the proposed solar installations. ### Manteca Unified School District serves the cities of Stockton, Lathrop, and Manteca as well as the town of French Camp. The District is approximately 113 square miles and is located in the southern part of San Joaquin County. MUSD educates more than 23,000 students in grades kindergarten through high school at 20 K-8 elementary schools, 5 high schools, and 3 alternative education schools. http://www.mantecausd.net/ IEC Power, LLC acts as a turnkey Engineering, Procurement and Construction (EPC) company for Project Owners and Financial Investors. IEC Power works closely with its school district clients to assist administrators in achieving utility cost savings through the installation of solar photovoltaic (PV) facilities and other renewable generation systems on district properties. http://www.iec-corporation.com/affiliates/iec_power. php Indoor Environmental Services (IES) provides design, engineering, and construction for Facility Solutions projects. The company is USGBC accredited and certified in green building design, construction, and operations. www.ies-hvac.com SEC Welcomes New Members! Climatec Corona-Norco Unified School District Kern Union High School District Manteca USD Mendocino County Office of Education Terra Verde Renewable Partners

SCHOOL ENERGY COALITION Membership Application Yes! I wish to become a member of the School Energy Coalition (SEC). Please enter my yearly membership at the following fee: FEES: Local Education Agencies (includes Districts, COEs, Community Colleges) $250 per year Small School Districts (Less than 2,500 ADA & Charter Schools).. $100 per year Businesses/Associates $750 per year Contact Name Date Title Organization Address City State Zip Phone Fax E-mail Payment Method: Check # P.O. # Please mail or fax to: School Energy Coalition 1130 K Street, Suite 210, Sacramento, CA 95814 (916) 441-3300 phone (916) 441-3893 fax