Luskin Center Research Supports Implementation of Prop 39: the CA Clean Energy Jobs Act

Luskin Center Research Supports Implementation of Prop 39: the CA Clean Energy Jobs Act

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Wed, 11/07/2012 - 3:05pm

California voters have approved Proposition 39: the California Clean Energy Jobs Act and its implementation will be supported by Luskin Center research. The Luskin Center partnered with the Los Angeles Business Council (LABC) Institute to evaluate program design options for Prop 39 funds and other efforts to spur energy efficiency and local renewable energy investments in California.

Prop 39 repeals a loophole that currently provides a favorable tax treatment to businesses with property and payroll outside of California. After implementing legislation goes into effect, Prop 39 will require multistate businesses to calculate their California income taxes based on their percentage of sales in California. The adoption of this tax approach, called the single sales factor, will increase state revenues by as much as $1.1 billion per year. For a five year period, half of that revenue will be transferred annually to a Clean Energy Jobs Creation Fund. Money in this fund will be available for appropriation for the purpose of funding projects that create jobs in California improving energy efficiency and expanding clean energy generation. The money will be allocated between 1) schools and public facilities, 2) job training and workforce development, and 3) public-private partnerships.

The Luskin Center and LABC Institute project focuses on public-private partnership opportunities that could benefit businesses and homeowners, as well as schools and public facilities. The researchers reviewed clean energy financing programs in existence and on the horizon, and then explored strategies to achieve the following guiding principles for public-private partnerships in an efficient, accountable and transparent way: 1) maximize job creation, 2) lower energy bills for customers, 3) maximize private capital by leveraging public funds, 4) replenish public funding, and 5) offer a low cost form of financing for the borrower. The Luskin Center's legal scholar Elizabeth Beryt is the project manager. J.R. DeShazo, director of the Luskin Center and professor of public policy, is directing the project with support from deputy director Colleen Callahan. Mary Leslie, president of the LABC Institute, commissioned and is now overseeing policymaker outreach for the study.

California voters have approved Proposition 39: the California Clean Energy Jobs Act and its implementation will be supported by Luskin Center research. The Luskin Center partnered with the Los Angeles Business Council (LABC) Institute to evaluate program design options for Prop 39 funds and other efforts to spur energy efficiency and local renewable energy investments in California.