BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           84 (Burton)
          
          Hearing Date:  7/19/01          Amended: 7/17/01       
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          11-0                     
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          SB 84xx, an urgency bill, appropriates $10 million from the  
          General Fund to the California Energy Commission (CEC) to  
          establish a grant program for cities and counties to  
          purchase and install backup battery systems for  
          light-emitting diodes (LED) traffic signals, as specified. 

                              Fiscal Impact (in thousands)
           
          Major Provisions                 2001-02           2002-03              
           2003-04               Fund  
          
          Grant program              $ 10,000*            --                    
                --             General
          Administration                     Unknown            --              
                      --              General

          *Appropriated in the bill. 
          
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense File. 

          The CEC previously administered a $10 million grant program  
          for, and currently offers loans to, cities and counties to  
          help them replace traditional incandescent traffic signals  
          with LED signals.

          The bill establishes priorities for grant awards, and  
          contains a 30% match requirement.  This is apparently  
          intended to be a one-time appropriation.  Staff notes that  
          there is no sunset. 

          STAFF RECOMMENDS that the bill be amended to (1) specify  
          that CEC's administrative costs may not exceed 5% of the  
          amount appropriated, and (2) require CEC to report to the  
          Legislature and Governor on expenditures, including grant  










          awards, and program activities.