BILL ANALYSIS
Appropriations Committee Fiscal Summary
1086 (Alarcon)
Hearing Date: 7/2/01 Amended: 5/30/01
Consultant: Lisa Matocq Policy Vote: E, U & C
8-1
____________________________________________________________
___
BILL SUMMARY: SB 1086, an urgency bill, appropriates $15
million from the General Fund to the California Energy
Commission (CEC) for the purpose of making grants or loans
for projects that demonstrate the viability of equipment
that converts gas from solid waste landfills into liquefied
natural gas for use as transportation fuel.
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03
2003-04 Fund
Appropriation $15,000* --
-- General
*Appropriated in the bill.
STAFF COMMENTS: This bill meets the criteria for referral
to the Suspense File. The CEC administers a $15 million
grant program for landfill gas-to-electricity pilot
projects. Last year, 23 projects were awarded grants.
This bill:
provides that the CEC shall develop guidelines, including
evaluation criteria, for administering the program,
specifies that up to 2 % of the amount appropriated may
be retained by CEC for administrative costs,
contains a 65% match requirement.
The bill also specifies that the program is subject to
existing statutes collectively known as the Energy
Research, Development, Demonstration, and Commercialization
Act (Act) of 1993. The Act contains, among other things,
eligibility criteria, a biennial reporting requirement, a
January 1, 2005 sunset, and royalty provisions. It also
specifies that eligible recipients of grants and loans are
small businesses, and provides that the maximum loan
duration is 10 years. STAFF NOTES that there are several
discrepancies between the provisions of this bill and the
Act relating to grant recipients, the match requirement,
etc., which should be resolved. According to the author's
staff, this is intended to be a one-time appropriation.
STAFF RECOMMENDS that the bill be amended to (1) require
that any funds unencumbered by the sunset date revert to
the General Fund, and (2) on page 3, line 29, strike
"commission" to ensure that to the extent the CEC contracts
out for personnel to administer this program, such costs
are subject to the 2 % administrative costs cap.