SAN FRANCISCO, CA – Advanced Energy Economy (AEE), a national business organization with a significant presence in California, today released a statement regarding California Governor Jerry Brown’s FY 2014 budget signing in which the organization reiterated its call for funds to be leveraged and used as intended to support the state’s advanced energy goals.
“We applaud Gov. Brown for signing California’s FY 2014 budget,” said Steve Chadima, SVP Communications & Director of California Initiatives, Advanced Energy Economy. “We are especially encouraged by language that seeks to leverage Prop 39 funds for greater impact in energy savings and job creation. We think this approach should be carried forward to AB 32 auction funds as well. California has a tremendous opportunity to invest in measures that produce economic benefits to the state in both energy cost savings and jobs. We look forward to working with the Governor and legislature as implementation moves forward.”
AEE recently released a new report that says California can increase the impact of Prop 39 four-fold and extend its energy-saving benefits well beyond the initiative’s five-year timeframe by dedicating a significant portion of revenues to finance mechanisms that spur greater private capital participation. The AEE report -- “Expanding Energy Savings Through Leverage: Proposals for Getting More Value Out of Proposition 39” -- outlines three options to attract and leverage outside capital to expand total energy savings.
These options, developed in consultation with California advanced energy business and financial leaders, incorporate innovative financing mechanisms to stretch the estimated $2.6 billion that will be generated by Prop 39 over five years to more than $10.5 billion over 30 years. This leveraging of private capital will finance a far greater number of energy-saving improvements in schools and other public buildings.
For a full copy of AEE’s report on how California can stretch Prop 39 funds for efficiency projects, please visit www.aee.net.
AEE’s approach in this report is based on the following principles, developed in consultation with advanced energy executives and project finance experts and transmitted to Governor Brown and legislative leaders:
- Prop 39 implementation should follow a phased-in approach, shifting from grants and technical assistance in the early years to financing mechanisms that extend the duration and impact of the program in later years.
- All elements of Prop 39 should seek to attract and leverage outside capital; this includes the grant-funding elements, which should require applicants to leverage additional dollars in the form of utility rebates, local bond revenues, public or private loans, or other sources.
- Entities with experience dealing with private markets should oversee the finance elements of Prop 39 implementation. The State Treasurer’s office currently administers a number of programs that deal directly with private markets. At the same time, other state entities may be better positioned to interact with school districts and other applicants, allowing the Treasurer’s office to focus on the finance-related elements of program implementation.
- Prop 39 implementation should seek to align existing and forthcoming California energy finance programs, serving as a bridge to a more comprehensive approach to financing advanced energy in California.
About Advanced Energy Economy
Advanced Energy Economy is a national association of businesses and business leaders who are making the global energy system more secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE members include companies involved in technology development, component and product manufacturing, project and infrastructure development, equipment installation, engineering, finance, advisory services, and other activities that help business and residential consumers meet their energy needs in better ways. www.aee.net
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