BILL ANALYSIS
AB 653
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GOVERNOR'S VETO
AB 653 (Nunez)
As Amended January 7, 2004
2/3 vote
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|ASSEMBLY: |78-0 |(May 29, 2003) |SENATE: |24-11|(August 19, |
| | | | | |2004) |
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|ASSEMBLY: |52-27|(August 26, | | | |
| | |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 :
AB 653
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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
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.
GOVERNOR'S VETO MESSAGE :
"This bill repeals the January 1, 2005 sunset date of the Energy
Efficiency Revenue Bond Program, making the authority to issue
revenue bonds permanent. Although I strongly support energy
efficiency, I am concerned that this program has not been
working effectively over the last few years. I have been
recently informed that bond sales from this program have been
suspended due to technical flaws with the authorizing statute.
Therefore, we should allow this program to sunset and craft
another program that addresses these structural challenges."
AB 653
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Analysis Prepared by : Pablo Garza / B. & P. / (916) 319-3301
FN: 0009300