AB 1181

Current law generally limits the total amount of revenue per pupil a school district may receive from general school aids and property taxes in a school year. However, there are several exceptions to the revenue limit under current law. One such exception is for a school district in which the school board adopts a resolution to exceed the school district’s revenue limit for an energy efficiency project. Under current law, the ability of a school board to increase the school district’s revenue limit by adopting a resolution to exceed the revenue limit for an energy efficiency project is restricted to only those resolutions adopted before January 1, 2018, or after December 3018. This bill eliminates this restriction. Under the bill, beginning on the date on which the bill becomes law, a school district may increase its revenue limit by the amount the school district spends on an energy efficiency project by adopting a resolution to do so.

Under current law, to qualify for the energy efficiency revenue limit adjustment, an energy efficiency project must be governed by an energy savings performance contract, which is a contract for an energy conservation measure. Current law defines an “energy conservation measure” as a facility alteration or training, service, or operations program designed to reduce energy consumption or operating costs, conserve water resources, improve metering accuracy, or ensure compliance with state or local building codes. Under the bill, to qualify for the energy efficiency revenue limit adjustment the energy efficiency project must be a facility alteration or training, service, or operations program designed to reduce energy consumption or operating costs, conserve water resources, or improve metering accuracy. In other words, a facility alteration or training, service, or operations program designed to ensure compliance with state or local building codes does not qualify for the energy efficiency revenue limit adjustment.