BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 653
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 653 (Nunez)
          As Amended January 7, 2004
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 29, 2003)  |SENATE: |24-11|(August 19,    |
          |           |     |                |        |     |2004)          |
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           Original Committee Reference:    B. & P.  

           SUMMARY  :  Repeals the sunset date and expands eligibility  
          requirements for bonding authority related to the State Public  
          Works Board's (PWB) "Energy Conservation in Public Buildings  
          Program" (Program).  Specifically,  this bill  :  

          1)Expands the Program's eligibility to include projects that  
            combine conservation and alternative energy equipment.

          2)Requires PWB, in determining whether to issue funding, to  
            evaluate each proposed project in its entirety and analyze the  
            costs and financial and energy savings over the full life of  
            the project.  

          3)Authorizes PWB to consider any additional value added by  
            associated product warranties when analyzing a project.

          4)Repeals the sunset date of the Program's bonding authority,  
            making it permanent.

          5)Makes related definitional clarifications.

           The Senate amendments  :

          1)Eliminate the sunset date altogether, thereby making this  
            authority permanent.

          2)Authorize PWB to consider any additional value added by  
            associated product warranties when analyzing a project.

           FISCAL EFFECT  :  Unknown 

           AS PASSED BY THE ASSEMBLY  , this bill extended the sunset date  
          and expanded eligibility requirements for bonding authority  








                                                                  AB 653
                                                                  Page  2

          related to the Program.

           COMMENTS  :  This bill is intended to extend the life of the  
          Program by expanding its eligibility requirements and making its  
          statutory authorization permanent.  

          The original Program was created in 1982 and provided bonding  
          authority to PWB for up to $500 million to finance the cost of  
          conservation or alternative energy projects in state buildings.   
          According to the sponsor, the Planning and Conservation League,  
          the Program still has approximately $235 million available for  
          projects.  By expanding Program eligibility and eliminating the  
          sunset date, it will be easier to use the remaining bonding  
          authority for environmentally friendly projects on state  
          property.

          Without a change to the sunset date (currently 2005), the  
          Department of General Services will stop approving future  
          projects under the Program this year because of "the significant  
          lead time for development and bond sales" required.


           Analysis Prepared by  :    Pablo Garza / B. & P. / (916) 319-3301 



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