BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 653|
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THIRD READING
Bill No: AB 653
Author: Nunez (D), et al
Amended: 1/7/04 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-1, 6/24/03
AYES: Bowen, Alarcon, Battin, Dunn, Murray, Sher,
Vasconcellos
NOES: McClintock
ABSENT/NO VOTE RECORDED: Morrow
SENATE APPROPRIATIONS COMMITTEE : 7-3, 8/17/04
AYES: Alpert, Bowen, Burton, Karnette, Machado, Murray,
Speier
NOES: Battin, Aanestad, Ashburn
NO VOTE RECORDED: Escutia, Johnson, Poochigian
ASSEMBLY FLOOR : 78-0, 5/29/03 - See last page for vote
SUBJECT : Energy efficiency: public buildings
SOURCE : Planning and Conservation League
DIGEST : This bill deletes the sunset date and revises
eligibility requirements for bond funding through the
Energy Conservation in Public Buildings program.
ANALYSIS : Current law authorizes the State Public Works
Board (SPWB), until January 1, 2005, to issue revenue
bonds, notes, and bond anticipation notes to finance
cogeneration equipment, alternative energy equipment, and
CONTINUED
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conservation measures in public buildings.
This bill deletes the sunset date of the SPWB's bonding
authority, thus making this authority permanent.
Current law doesn't specify whether the bonds can be used
for projects that combine conservation measures with
alternative energy equipment purchases.
This bill permits the bonds to be used for projects that
combine conservation measures with alternative energy
equipment purchases.
Current law requires energy efficiency and conservation
projects to save enough money in operational costs to cover
the expense of financing the project. Generally, the State
Department of General Services requires projects to pay for
themselves within ten years.
This bill requires the SPWB, in determining whether to
finance a project, to evaluate the project in its entirety
and analyze the costs and financial and energy cost savings
over the full life of the project (rather than the
administrative requirement that a project pay for itself
within 10 years). It also allows the board to consider the
value added by a product warranty. These changes could
result in additional types of projects, such as
photovoltaics being financed, and longer repayment periods.
Background
In 1982, the Legislature passed SB 701 (Dills), Chapter
1523, Statutes of 1982, to create the state's "Energy
Conservation in Public Buildings" program. It gave SPWB
the authority to issue bonds in $50 million increments
beginning with the 1982-83 fiscal year to finance energy
and water conservation projects in state buildings that
would eventually save the state money, and allowed whatever
money wasn't spent to be rolled over to subsequent years.
AB 1551 (Pescetti), Chapter 981, Statutes of 1999, extended
the program from January 1, 2000, to January 1, 2005, and
capped the bonding authority at $500 million. According to
SPWB, there's an estimated $215 million worth of bonding
authority available.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06 2006-07 Fund
Bond authority Unknown, potentially $6,300 inBond
2004-05, and $12,600 annually in
subsequent years
DGS administration Up to $2,000 annually, should
be Special*
offset by long-term energy cost
savings
*Service Revolving Fund
SUPPORT : (Verified 8/18/04)
Planning and Conservation League (source)
City of San Diego
Clean Power Campaign
Sierra Club California
Vote Solar Initiative
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Corbett,
Correa, Cox, Daucher, Diaz, Dutra, Dutton, Dymally,
Firebaugh, Frommer, Garcia, Goldberg, Hancock, Harman,
Haynes, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, Koretz, La Malfa, La Suer, Laird, Leno,
Leslie, Levine, Lieber, Liu, Longville, Lowenthal,
Maddox, Maldonado, Matthews, Maze, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete
McLeod, Nunez, Oropeza, Pacheco, Parra, Pavley, Plescia,
Reyes, Richman, Ridley-Thomas, Runner, Salinas,
Samuelian, Simitian, Spitzer, Steinberg, Strickland,
Vargas, Wiggins, Wolk, Wyland, Yee, Wesson
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NC:sl 8/18/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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