What is California Proposition 39?
Proposition 39 is a ballot initiative in the state of California that modifies the way out-of-state corporations calculate their income tax burdens.
The proposition was approved by voters in the November 6 general election, with 61.1% voting in favor of it. Proposition 39 removes the ability for out-of-state corporations to choose how to calculate their California tax burden, now all companies doing business in the state use the single-sales factor method, which only uses sales to calculate income tax.
Proposition 39 also contains instructions on how the extra tax revenue —approximately $1 billion each year—will be spent. For the first five years, half of the new tax revenue would be spent on clean energy projects. The other half would go to the state’s general fund. After five years, all extra monies would go to the general fund.
What about colleges and school districts and Prop 39?
Generally across the State of California our schools face a growing financial and facilities crisis. District budgets have become tighter and tighter every year. Amid the financial binds and deteriorating facilities, proposition 39 offers renewed hope to California Schools with significant funds to implement energy conservation measures or add renewable energy sources to reduce energy and operational costs. Once a School District is approved to receive funding they must create and submit an Energy Expenditure Plan that describes how the money will be spent to curtail energy consumption or provide a source for renewed energy.
We understand that most California School districts are seeking outside consulting help to develop this plan. In most cases they are seeking one firm that can support their efforts in development of its Energy Expenditure plans, consistent to satisfy all of the California Energy Commission’s requirements. We also understand that the districts may also desire to engage the same firm to provide support for the later stages of implementation and verification of the energy projects.
We have assembled a team of experts that will provide all the management, communicative and technical resources needed to support the achievement of the District’s goals relative to CEC Proposition 39 Guidelines including the following basic functions:
1. Develop and Complete Guideline Forms A (General Plan)
2. Develop and Complete Guideline Form B ( Energy Project) for each eligible site including multiple energy measures.
- Organize energy data from schools for multiple years and analyze.
- Benchmark schools.
- Provide energy surveys and audits on schools.
- Provide energy project and measure feasibility, energy saving calculation, cost estimating, return on investment, and cost effectiveness.
- Develop sequencing of facility improvements.
- Develop long term consequences and strategic interests for the District.
- Leverage award funding.
3. Assist with completion of the utility data release authorization forms for each utility type.
4. Provide all Form B backup data required to support each energy project measures.
- Provide all energy saving calculator data and write ups for qualified simple projects.
- Provide all energy survey and energy audit data and write ups required.
5. Assist with building owner certification forms.
6. Assistance in uploading all required forms and data.