BILL ANALYSIS
AB 1138
Page 1
ASSEMBLY THIRD READING
AB 1138 (La Suer)
As Amended May 3, 2001
Majority vote
ECONOMIC DEVELOPMENT 11-0 UTILITIES AND COMMERCE 12-0
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|Ayes:|Reyes, Cogdill, Ashburn, |Ayes:|Wright, Pescetti, |
| |Bogh, Chan, Cohn, Correa, | |Calderon, Bill Campbell, |
| |Diaz, Liu, Oropeza, Wyman | |John Campbell, |
| | | |Canciamilla, Diaz, La |
| | | |Suer, Leonard, Maddox, |
| | | |Papan, Wesson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 20-0
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|Ayes:|Migden, Bates, Alquist, | | |
| |Aroner, Ashburn, Cedillo, | | |
| |Correa, Daucher, | | |
| |Goldberg, Maldonado, | | |
| |Robert Pacheco, Papan, | | |
| |Pavley, Runner, Simitian, | | |
| |Thomson, Wesson, Wiggins, | | |
| |Wright, Zettel | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Allows the Infrastructure and Economic Development
Bank (Bank) to provide financing to public and non-public
parties for repowering of existing electrical facilities and for
planning, design, construction and startup of peak demand
facilities of up to 150 megawatts (MWs). Specifically, this
bill :
1)Authorizes the Bank to make low-interest loans, in an amount
not to exceed 75% of the total project, to a public entity or
to a non-public, for-profit entity that is sponsored by a
public entity.
2)Requires a participating party to give right-of-first-refusal
AB 1138
Page 2
for the purchase of energy to the Department of Water
Resources and California electrical corporations, municipal
corporations, irrigation district, and other public electric
utility districts.
3)Permits bank loans for electrical generation to electric
transmission lines, thermal, wind, hydroelectric, and solar
projects providing up to 150 MWs.
4)Prohibits electrical generation bank loans for diesel or
nuclear projects.
5)Provides that the power generated by the facility shall be
used exclusively within the state.
6)Sunsets the loan authorization provisions on January 1, 2007.
EXISTING LAW authorizes the Bank to provide low-interest loans
to public entities that have limited access to capital.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, potential ongoing special fund cost of about
$100,000 for one staff position to review powerplant financing
proposals.
COMMENTS : The Bank is currently authorized to lend money to
local public and non-profit entities for the purpose of
infrastructure. The Bank is only authorized to lend directly to
private entities in the case of financing facilities and
equipment for qualified manufacturers. The Bank is not
authorized to lend for the purpose of electrical generation.
Amendments taken in policy committee clarify that the Bank, for
purpose of electrical generation, may only provide loans
directly to a public entity or to a public sponsor on behalf of
a private entity.
Analysis Prepared by : Pedro Villegas / J., E.D. & E. / (916)
319-2090
FN: 0000682