LOS ANGELES—Creating a revolving fund to finance clean energy and energy efficiency projects could dramatically increase the economic impact of Proposition 39 – the California Clean Energy Jobs Act—to well over $1 billion. That is the conclusion of a study conducted for the Los Angeles Business Council Institute by a research team at UCLA. The measure could also create an estimated 21,000 green jobs in the Golden State, the report adds.

The LABC Institute, which is dedicated to strengthening the sustainable economy of California, provides a bridge between the public and private sectors to develop policies and programs that promote investment, jobs and business development. The Institute has been actively working to help the state achieve its Renewables Portfolio Standards (RPS) goals, and commissioned the UCLA study to determine how to maximize the environmental and economic benefits of Proposition 39.

Proposition 39, passed by voters in 2012, requires businesses operating in multiple states to calculate their state income tax liability based on the percentage of their sales in California. A small percentage of the new taxes collected, between $50 million to $125 million per year for five years, could be invested in a loan fund for projects that support improving energy efficiency and increasing the use of renewable energy resources, and the associated jobs created by doing so.