Senate goes green, passing $100M energy efficiency schools plan

Despite decrying Democrats, state Senate Republicans pushed through a $100 million program Wednesday to help local school districts become more energy efficient to save money on utility bills.

The “Energy Efficient Schools Initiative” would set aside $100 million of an estimated $460 million lottery surplus fund, forming a council to loan or grant funds to local school districts to purchase more environmentally friendly equipment or infrastructure, such as heating and air conditioning units as well as windows.

The money saved on utility bills, estimated at $29 million, would therefore help the school systems financially, proponents say.

“This bill I think will be the genesis of all of our (school districts) across the state to start thinking green in the way of saving,” said Sen. Bill Ketron (R-Murfreesboro).

Meanwhile, a full Senate vote on a larger omnibus lottery bill, utilizing $350 million of a $460 million pot of surplus lottery funds, was delayed Wednesday.

The energy efficiency schools bill passed 18-13 despite strong Democratic objections, who favored additional scholarships as opposed to sending money back to K-12 school districts.

All Republicans in the Senate voted for the energy efficiency legislation, joined by Democratic Sen. Rosalind Kurita of Clarksville and Independent Mike Williams of Maynardville.

Instead of returning the funds to local school districts, Democrats wanted the $100 million to be invested into a larger, about $450 million interest-earning endowment.

The proceeds of that endowment would go solely toward funding additional college scholarship programs, mainly for lowering the GPA required to keep a HOPE scholarship from 3.0 to 2.75 through all years of college.

That costs $17 million, and lawmakers recognized that lowering the GPA across the board and funding the energy efficiency program could not both be accomplished.

“It’s a bad idea because you are taking money away from these kids to have an opportunity to go to college,” said Sen. Joe Haynes (D-Goodlettsville), the chairman of the Senate Democratic Caucus, of the energy efficiency plan.

The energy program would create a 12-member “Energy Efficient Schools Council.” Among other duties, the council would have the authority to award grants or loans to applying school districts for qualifying energy efficient projects.

The council does not have limits on how much money it can loan or grant to a school district.

Senators from rural areas argued there weren’t enough protections in the bill to ensure that all school districts would receive funding from the program.

“Let me just be frank with you — I see where the urban areas can literally rape rural counties on this,” said Sen. Mike Williams (I-Maynardville), who ultimately voted for the bill. “Because if there’s no limits on what can take place, if these rural counties do not jump in on this quickly enough, the larger counties can just (be) like hogs in a trough on this.”

Sen. Randy McNally (R-Oak Ridge), the sponsor of the bill, said the energy council is directed in the legislation to administer funds on an “equitable basis” to all school districts in the state no matter how large or small.

Kurita, the lone supporting Democrat, said energy efficient equipment could help “save money on property tax” and use those savings to invest in students.

“It’s not the time to get into a partisan fight,” Kurita said. “This is a time for us to be together.”

Sen. Tommy Kilby (D-Wartburg) disputed the notion that the energy efficient program would save “one red cent on a property tax rate” and questioned the energy council’s lack of restrictions on how the funds are distributed.

“There is no guarantee … that this money will be equally and equitably divided among the students of the state of Tennessee,” Kilby said. “There is no guarantee, none whatsoever, that this will happen.”

On the larger omnibus lottery bill, the Republicans want to lower the GPA to 2.75 through just the junior year, which costs $7 million as opposed to the Democrats’ $17 million.

Currently, a HOPE scholarship award recipient can keep their award with a 2.75 after their freshman year but has to get it up to a 3.0 by the end of their sophomore year.

The Republican plan would extend it to the junior year while the Democrats would cover all years.