Targeting Proposition 39 to Help California’s Schools Save Energy and Money

The document examines how Proposition 39, which provides an estimated $2.75 billion for energy efficiency and clean energy in public buildings, can be targeted to maximize energy savings in California schools. It identifies that while many districts can access low-cost private capital for short-payback projects like lighting, they lack the technical capacity to vet proposals and the funding to pursue deeper, more costly energy-saving measures. The authors recommend using Proposition 39 funds for impartial technical assistance, matching grants for high-impact projects, and targeted support for financially distressed or small districts.

• California school districts are primarily motivated by energy efficiency projects that provide immediate budget relief through net bill savings, leading them to prioritize short-payback measures and those with generous rebates over projects with higher initial costs but greater long-term savings.
• A significant barrier to energy efficiency is the lack of impartial technical assistance to help districts evaluate vendor proposals and navigate financing, as many districts lack the staff resources to vet claims made by energy service companies (ESCOs).
• Most school districts can currently access private capital at low interest rates (typically 2.25-5% for 15-year terms) via municipal lease-purchase agreements, meaning the cost of capital is not the primary obstacle for standard efficiency upgrades.
• Proposition 39 funds should be used as a "sweetener" for districts already using local bonds or state modernization grants to encourage the addition of deeper energy-saving measures to planned renovations, rather than funding projects that are already economical.
• Certain districts—those that are too small to attract ESCOs, too financially strapped to qualify for loans, or unable to pass local bonds—require Proposition 39 to provide full or majority funding for project costs.
• Modeling indicates that while lighting and minor HVAC projects are easily financed through existing leases, ECAA, or OBF, major HVAC replacements and on-site generation projects often require significant grant-based support to be budget-neutral or viable.
• Existing public loan programs like the Energy Conservation Assistance Act (ECAA) and on-bill financing (OBF) are limited by loan size caps and rigid payment schedules, which can make them less attractive than private leases for larger school-scale projects.

APA

Zuckerman, J., Deason, J., & Benami, E. (2013). Targeting Proposition 39 to Help California’s Schools Save Energy and Money. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/05/Targeting-Proposition-39-to-Help-California’s-Schools-Save-Energy-and-Money.pdf

Chicago

Zuckerman, Julia, Jeff Deason, and Elinor Benami. Targeting Proposition 39 to Help California’s Schools Save Energy and Money. Climate Policy Initiative, 2013. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/05/Targeting-Proposition-39-to-Help-California’s-Schools-Save-Energy-and-Money.pdf.

Wikipedia

{{cite report |last1=Zuckerman |first1=Julia |last2=Deason |first2=Jeff |last3=Benami |first3=Elinor |title=Targeting Proposition 39 to Help California’s Schools Save Energy and Money |publisher=Climate Policy Initiative |date=May 2013 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2013/05/Targeting-Proposition-39-to-Help-California’s-Schools-Save-Energy-and-Money.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{zuckerman2013targeting, author = {Zuckerman, Julia and Deason, Jeff and Benami, Elinor}, title = {{Targeting Proposition 39 to Help California’s Schools Save Energy and Money}}, institution = {Climate Policy Initiative}, year = {2013}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2013/05/Targeting-Proposition-39-to-Help-California’s-Schools-Save-Energy-and-Money.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }