The Donald Vial Center on Employment in the Green Economy at the University of California, Berkeley has released a report which provides a detailed analysis of the jobs and workforce impact of Proposition 39, which California voters approved in Nov 2012.
Proposition 39, aka the California Clean Energy Jobs Act, allows the state to impose income tax on multistate corporations based on a percentage of their sales in California.
It increases the state‚Äôs revenue by a billion dollars annually, and half of the new revenue collected over the next five years will be allocated for energy efficiency projects in California‚Äôs public schools, community colleges and universities.
The stated aim for the use of funds is that it should create good-paying clean energy and energy efficiency green jobs in the state. As such, some of the funds will be used for workforce training and helping youth and veterans gain employment doing these jobs.
Based on the assumption that $550 million will be provided by California in grants for energy efficiency retrofits, it will result in the creation of 3,410 direct person-year jobs and 7,843 total person-year jobs annually.
A person-year job is a full-time job for one year. Out of the total number of direct jobs, around 2,273 will be skilled construction jobs.
If a revolving loan fund is created to pool $50 million of the Proposition 39 funding each year for the next five years, it could be leveraged into a total of $700 million in investments, leading to the creation of 4,340 direct jobs. If a $100 million revolving loan fund is set up, it would result in an investment of $850 million and would create 5,270 direct jobs.
The idea for creating a revolving loan fund using a part of Proposition 39 funds was explored in a study released last month by the UCLA Luskin Center for Innovation and commissioned by the Los Angeles Business Council Institute (LABC).
LABC President Mary Leslie said that Proposition 39 had opened up an opportunity to fulfill two of the state‚Äôs priorities at the same time ‚Äì increasing commitment to environmental sustainability while adding thousands of green jobs.
Leslie added that the revolving loan fund would support innovative projects in public-private partnerships and maximize the benefits of Proposition 39 funds for the environment and the economy, and for California workers.