BILL ANALYSIS
AB 1138
Page 1
Date of Hearing: April 3, 2001
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Sarah Reyes, Chair
AB 1138 (La Suer) - As Amended: March 27, 2001
SUBJECT : Electrical infrastructure development: low-interest
loans.
SUMMARY : Includes as an eligible project for Infrastructure
and Economic Development Bank financing non-public projects to
repower existing electrical facilities and to plan and design
construction and startup of peak demand facilities of up to 150
megawatts. Specifically, this bill :
1)Authorizes the bank board to make low-interest loans to
non-public, for-profit entities for costs associated with
repowering an existing electrical facility.
2)Authorizes the bank board to make low-interest loans to a
non-public, for-profit entity for the planning, design,
construction, and startup of peak demand facilities of up to
150 megawatts that are intended to operate only during peak
demand periods.
3)Specifies the following conditions on loans:
a) The sponsor shall agree to give California utilities a
right of first refusal to purchase any electricity produced
by the project.
a) The party shall have an existing contract with the
Independent System Operator or the Department of Water
Resources.
a) The power generated by the facility shall be used
exclusively within the state.
a) The loan amount shall not exceed 75% of the total cost
of the project.
EXISTING LAW establishes the California Infrastructure and
Economic Development Bank to promote economic revitalization,
enable future development and provide low-interest loans to
AB 1138
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public entities. The purpose of the Infrastructure Bank is to
provide financial assistance to communities that have limited
access to capital.
FISCAL EFFECT : Unknown.
COMMENTS :
Staff poses the following questions: Is conventional financing
for this purpose scarce or unavailable in the marketplace?
Might public sector lending to private, for-profit entities
compete with private lenders or "crowd out" private lending?
Why is 150 megawatts chosen as the limit for peak demand
facilities?
This bill carries an urgency clause.
SUPPORT:
None on file.
OPPOSITION:
None on file.
Analysis Prepared by : Celeste Cant? / J., E.D. & E. / (916)
319-2090