BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                            Senator Carole Migden, Chair

                                           698 (Poochigian)
          
          Hearing Date:  5/26/05          Amended: 5/4/05
          Consultant:  Bob Franzoia       Policy Vote: Ed 11-0  EU&C  11-0
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          BILL SUMMARY: SB 698 would appropriate $50 million, commencing  
          with the 2006-07 fiscal year and ending with the 2010-11 fiscal  
          year, from the Proposition 98 Reversion Account to the Clean Air  
          and Schoolbus Safety Fund for the purpose of replacing  
          schoolbuses.  The bill would authorize the California Energy  
          Commission (CEC) to use up to five percent of the funds  
          appropriated to administer this program.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions               2005-06     2006-07    2007-08    Fund
           Appropriation                          $50,000  $50,000*  
          General**                    

          * Appropriation ends with the 2010-11 fiscal year        
          ** Counts toward meeting the Proposition 98 minimum funding  
          guarantee
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          STAFF COMMENTS: SUSPENSE FILE.

          The CEC shall first select schoolbuses for replacement that were  
          manufactured before 1977.
          After all the schoolbuses manufactured before 1977 that are  
          currently in operation have been removed from service by local  
          educational agencies, the CEC shall select schoolbuses for  
          replacement based upon the following criteria:
             1)   Earliest manufacture data.
             2)   2) Average daily mileage.

          The CEC would be authorized to spend up to $2.5 million annually  
          to administer the program.  It appears the CEC is designated to  
          administer the program because it administered the Katz Safe  
          Schoolbus Clean Fuel Efficiency Demonstration Program.  It is  
          staff's understanding that program was funded with non  










          Proposition 98 General Funds.  Providing Proposition 98 funds to  
          the CEC for administrative expenses may violate Proposition 98.

          STAFF RECOMMENDS the bill be amended to (1) appropriate General  
          Funds to the CEC for its administrative expenses, and (2)  
          appropriate funding for one fiscal year only.