BILL ANALYSIS
Bill No: SB
82xx
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Edward Vincent, Chair
2001-2002 Regular Session
Staff Analysis
SB 82xx Author: Murray
As Introduced: June 4, 2001
Hearing Date: June 26, 2001
Consultant: Art Terzakis
SUBJECT
Solar Energy Systems
DESCRIPTION
SB 82xx mandates the installation of solar energy equipment
on all existing and new state buildings, when practicable,
and permits small business financial development
corporation (SBFDCs) to grant loans for solar energy
systems. Specifically, this measure:
1. Defines "solar energy system" for purposes of the Small
Business Development Corporation Law and permits SBFDCs
to grant loans, minimum $8,000 and maximum $1 million,
for such systems.
2. Requires the Energy Commission, in cooperation with the
Office of Small Business, to establish criteria and
procedures for solar energy system loans made by SBFDCs.
3. Requires the Department of General Services (DGS), in
consultation with the Energy Commission, to ensure that
"solar energy equipment," as defined, is installed by
January 1, 2007 on all state buildings and parking
facilities, where feasible.
4. In addition, stipulates that solar energy equipment
must be installed on all state buildings and parking
facilities for which construction begins after December
31, 2002.
SB 82xx (Murray) continued
Page 2
5. Permits DGS to exempt projects to install such
equipment from specified advertising and competitive
bidding requirements.
6. Declares that solar energy equipment installation on
state buildings and parking facilities is a state energy
project within the meaning of certain provisions of the
Government Code and authorizes DGS to expend specified
funds for these purposes.
EXISTING LAW
Existing law, the Small Business Development Corporation
Law, establishes a program offering loan guarantees and
other financial assistance to small businesses unable to
obtain conventional commercial bank credit. The law
creates a structure under which nonprofit regional small
business development corporations (SBFDCs) use state funds
to guarantee loans to small business. The state has
created eight SBFDCs which are given legislative charters
to make small business loans and loan guarantees for
various purposes, including loans for "energy efficiency
improvement." Additionally, there are various branch
offices or satellite centers affiliated with the SBFDCs.
The corporations issue loan guarantees, up to 90% on loans
of up to $350,000.
Each SBFDC has a trust account and a loan reserve with the
California Small Business Expansion Fund. Each SBFDC is
provided an account within the Fund for the purpose of
paying loan defaults based on guarantee encumbrance. The
law provides for an 11-member California Small Business
Board responsible for approving new SBFDCs based on
recommendations by the Director of the Office of Small
Business
Under current law, the Department of General Services
generally governs state procurement activities, including
acquisition of materials, supplies, and services. The
department also has primary responsibility for the
planning, acquisition, construction and maintenance of
state buildings.
Existing law establishes, within the Resources Agency, the
Energy Resources Conservation and Development Commission
SB 82xx (Murray) continued
Page 3
(Energy Commission) which has various responsibilities
related to energy conservation.
RELATED LEGISLATION
SB 1085 (Bowen) 2001-02 Session. Would require new state
buildings to exceed current energy efficiency standards and
be constructed and/or renovated to incorporate
"environmentally friendly" building standards. (Pending in
Assembly policy committee)
BACKGROUND
The author notes that this measure is intended to provide
relief to small business owners who wish to secure loans
for energy efficiency improvements by identifying "solar
energy systems" as energy efficient resources.
The bill would specify both minimum and maximum loan
amounts for such systems and require that criteria and
procedures be established by the Energy Commission and the
Office of Small Business for the issuance of such loans by
SBFDCs.
The author believes that the state has an obligation to
utilize and promote the use of solar energy - a clean and
efficient source of power - thus, the second component of
this bill mandates the installation of solar energy systems
on all state buildings and parking facilities, where
feasible. For purposes of this bill, it is "feasible" to
install solar energy equipment if rooftop space on a
building or parking facility is relatively unencumbered and
receives sufficient sunshine to generate solar energy,
taking into consideration life cycle cost analysis.
Proponents believe that this measure would "promote the
expansion of clean solar energy and establish government
facilities as positive examples in the effort to actively
institute environmentally sound energy solutions." In
addition, proponents emphasize that this measure
"represents an important step towards sustainable and
environmentally sound solutions to California's energy
crisis."
DUAL-REFERRAL : Senate Energy, Utilities and Communications
SB 82xx (Murray) continued
Page 4
SUPPORT: As of June 21, 2001:
Clean Power Campaign
Sierra Club
OPPOSE: None on file as of June 21, 2001
FISCAL COMMITTEE: Senate Appropriations Committee
**********