BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            MARTHA M. ESCUTIA, CHAIRWOMAN
          

          AB 1362 -  Levine                                      Hearing  
          Date:  August 30, 2006          A
          As Amended:              August 28, 2006          FISCAL/URGENCY  
                B

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                                      DESCRIPTION
           
           Existing law  provides that the balance in any appropriation  
          shall revert to and become a part of the fund from which the  
          appropriation was made if it has not been disbursed during the  
          two years following the last day an appropriation is available  
          for encumbrance.  

           This bill  extends until December 31, 2008 the reversion deadline  
          for an appropriation funding a manure methane power production  
          program in order to permit the program to continue.

                                      BACKGROUND
           
          In 2001, SB 5X (Sher) appropriated $10 million to provide grants  
          for the purpose of encouraging the development of manure methane  
          power production projects on California dairies.  14 projects  
          have been approved for grants totaling $5.8 million.  In the  
          2004-05 Budget Act, the Legislature reclaimed $2.8 million of  
          the original appropriation in order to help balance the budget.   
          The remaining funding is encumbered for award for additional  
          projects.

          The Government Code provides that the balance in any  
          appropriation shall revert to and become a part of the fund from  
          which the appropriation was made if it has not been disbursed  
          during the two years following the last day an appropriation is  
          available for encumbrance.  According to the California Energy  
          Commission (CEC), this requirement will cause the funds  
          appropriated for the manure methane power production program to  
          revert to the General Fund this fall, notwithstanding the fact  










          that the CEC has approved payments beyond 2006.

                                       COMMENTS
           
          This bill extends the reversion deadline for this particular  
          appropriation until December 31, 2008 in order to permit the  
          manure methane power production program to continue.  Senate  
          Budget staff has reviewed and approved this extension.
           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (50-29)*
          Assembly Appropriations Committee  (13-5)*
          Assembly Natural Resources Committee                            
          (7-3)*
          Assembly Utilities and Commerce Committee                       
          (8-3)*
          *Votes from a prior version.
                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          None on file

           Oppose:
           
          None on file
          





























          Lawrence Lingbloom 
          AB 1362 Analysis
          Hearing Date:  August 30, 2006