BILL NUMBER: AB 1663	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY   SEPTEMBER 1, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Committee on Utilities and Commerce (Wright (Chair),
Pescetti (Vice Chair), Calderon, Campbell, Frusetta, Mazzoni, Reyes,
Vincent, and Wesson)

                        MARCH 11, 1999

   An act to amend Section 15814.15 of the Government Code, and to
amend Sections 25008.5, 25410.5, 25410.6, 25411, 25413, 25415, 25416,
25417.5, 25419, 25421, 25441, 25442, 25442.7, 25443.5, 25445,
25449.1, 25449.3, and 25449.4 of, and to repeal Sections 25412.5,
25442.5, 25446, and 25447.2 of, the Public Resources Code, relating
to energy conservation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1663, Committee on Utilities and Commerce.  Energy conservation
assistance:  loans and grants:  energy and water projects.
   (1) Existing law authorizes the State Public Works Board, until
January 1, 2000, to issue revenue bonds, notes, and bond anticipation
notes to finance the cost of cogeneration equipment, alternative
energy equipment, and conservation measures in public buildings in an
amount of $50,000,000 in each of the 10 fiscal years beginning with
the 1982-83 fiscal year, but provides that any portion of that
authorization not used in any fiscal year may be used in any future
fiscal year.
   This bill would provide that the total amount of revenue bonds,
notes, and bond anticipation notes issued by the board may not exceed
a total amount of $500,000,000, and would extend to January 1, 2005,
the termination date of those provisions.
   (2) Existing law, the Warren-Alquist State Energy Resources
Conservation and Development Act, until January 1, 2000, declares
that it is the policy of the state to encourage 3rd-party financing
of energy and water projects at state-owned sites and that
development of energy and water projects at state-owned sites can be
accelerated where reasonable incentives are provided, and sets forth
specified incentive benefits between the state and the institutions
siting the energy and water projects.
   This bill would extend to January 1, 2005, the termination date of
those provisions.
   (3) Existing law, the Energy Conservation Assistance Act of 1979,
which is a part of the Warren-Alquist State Energy Resources
Conservation and Development Act, creates the State Energy
Conservation Assistance Account in the General Fund to provide grants
and loans to eligible institutions, as defined, until January 1,
2001, for specified purposes relating to energy conservation
assistance.  The act authorizes the State Energy Resources
Conservation and Development Commission to make loans to local
governments owning, or leasing from entities other than privately
owned electrical utilities, street lighting systems for purposes of
converting those systems to improve energy efficiency.
   This bill would delete those provisions.
   (4) The energy conservation act authorizes the commission to
contract for specified services to be performed for eligible
institutions with respect to energy conservation assistance.
   The energy conservation act requires the commission to provide
loans to local jurisdictions for the purchase, maintenance, and
evaluation of specified energy efficient equipment, small power
production systems, and local transportation systems.
   This bill would, instead, require the commission to provide loans
to local jurisdictions for the purposes of financing energy audits,
feasibility studies, financial analyses, energy conservation measures
and projects, engineering and design, legal and technical
assistance, and for improving the operating efficiency of local
transportation systems.  The bill would also make various changes
with respect to the terms and conditions for the repayment of energy
assistance loans and the criteria for funding grants and loans, and
would revise certain of the commission's powers with respect to the
administration of provisions of the act.
   (5) This bill would extend to January 1, 2011, the termination
date of the energy conservation act.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15814.15 of the Government Code is amended to
read:
   15814.15.  (a) The board may issue revenue bonds, notes, including
commercial paper notes and other forms of negotiable short-term
indebtedness, and bond anticipation notes pursuant to Chapter 5
(commencing with Section 15830) to finance the cost of cogeneration
equipment, alternative energy equipment, and conservation measures
constituting the public buildings authorized by this chapter.  The
total amount of revenue bonds, notes, including commercial paper
notes and other forms of negotiable short-term indebtedness, and bond
anticipation notes authorized to be issued pursuant to this section
in each of the 10 fiscal years beginning with the 1982-83 fiscal year
is fifty million dollars ($50,000,000), for a total of five hundred
million dollars ($500,000,000).  Any portion of the authorization not
used in any fiscal year may be used in any future fiscal year.
   (b) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 2.  Section 25008.5 of the Public Resources Code is amended to
read:
   25008.5.  (a) The Legislature hereby finds and declares that in
order to maximize public benefit from private sector participation in
state operations and to maximize the Legislature's ability to devote
limited resources of the state to the responsibilities of state
government that are less attractive to private sector investment, it
is the policy of the state to encourage third-party financing of
energy and water projects, including, but not limited to,
cogeneration facilities, at state-owned sites.
   (b) The Legislature further finds and declares that the
development of energy and water projects at state-owned sites can be
accelerated where reasonable incentives are provided to the siting
institutions.  These incentives are necessary to offset the long-term
administrative, operational, and technical complexities of energy
and water projects developed under this section.  Reasonable
incentives for implementing the policy of this section shall include
the sharing of benefits derived from energy and water projects
between the state and the siting institution.  The benefits to the
state and siting institutions derived from projects implemented under
this section may include, but are not limited to, annual cash
revenues, avoided capital costs, reduced energy costs, reduced water
costs, site improvements, and additional operations and maintenance
resources.  The annual cash revenues derived from those projects
shall be shared equally between the state and the siting institution,
if both of the following conditions are met:
   (1) The use of cash and avoided cost benefits by siting
institutions is to be limited to improvement of ongoing maintenance,
deferred maintenance, cost-effective energy improvements, and other
infrastructure improvements.  To the extent an institution receives
annual cash revenues under this section, the institution shall retain
any money it receives, but not to exceed one-half of this amount, in
a special deposit fund account, which shall be continuously
appropriated to the institution for the purposes of this section.
The state's benefit share, and the siting institution's benefit share
that exceeds its needs, shall be deposited in the Energy and
Resources Fund or, if this fund is not in existence, the General Fund
for the purpose of investing in renewable resources programs and
energy efficiency improvements at state facilities.
   (2) The use of benefits shall be in addition to, and shall not
supplant or replace, funding from traditional sources for a siting
institution's normal operations and maintenance or capital outlay
budgets.
   (c) The Legislature further finds and declares that a
benefit-sharing incentive is applicable to energy projects reported
to, or authorized by, the Legislature pursuant to Section 13304 or
14671.6 of the Government Code.  This section shall not apply to
energy projects which are constructed on or at facilities or property
of the State Water Resources Development System.
   (d) Notwithstanding Section 7550.5 of the Government Code, the
Department of General Services shall submit annual reports to the
Legislature on the cost benefit aspects in carrying out this section.

   (e) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 3.  Section 25410.5 of the Public Resources Code is amended to
read:
   25410.5.  The Legislature finds and declares all of the following:

   (a) Energy costs are frequently the second largest discretionary
expense in a local government's budget.
   (b) A variety of energy conservation measures are available to
local governments.  These measures are highly cost-effective, often
providing a payback on the initial investment in three years or less.

   (c) Many local governments lack energy management expertise and
are often unaware of their high energy costs or the opportunities to
reduce those costs.
   (d) Local governments that desire to reduce their energy costs
through energy conservation and efficiency measures often lack
available funding.
   (e) Since 1980, the Energy Conservation Assistance Account has
provided $60 million in loans, through a revolving loan account, to
510 schools, hospitals, and local governments.
   (f) Local governments and public institutions need assistance in
all aspects of energy efficiency improvements, including, but not
limited to, project identification, project development and
implementation, evaluation of project proposals and options,
operations and maintenance training, and troubleshooting of problem
projects.
  SEC. 4.  Section 25410.6 of the Public Resources Code is amended to
read:
   25410.6.  (a) It is the intent of the Legislature that the
commission shall administer the State Energy Conservation Assistance
Account to provide grants and loans to local governments and public
institutions to maximize energy use savings, including, but not
limited to, technical assistance, demonstrations, and identification
and implementation of cost-effective energy efficiency measures and
programs.
   (b) It is further the intent of the Legislature that the
commission seek the assistance of others in providing energy audits
for local governments and public institutions and in publicizing the
availability of State Energy Conservation Assistance Account funds to
qualified entities.
  SEC. 5.  Section 25411 of the Public Resources Code is amended to
read:
   25411.  As used in this chapter:
   (a) "Allocation" means a loan of funds by the commission pursuant
to the procedures specified in this chapter.
   (b) "Building" means any occupied structure which includes a
heating or cooling system, or both.  Additions to an original
building shall be considered part of that building rather than a
separate building.
   (c) "Eligible institution" means a school, hospital, public care
institution, or a unit of local government.
   (d) "Energy audit" means a determination of the energy consumption
characteristics of a building or facility that does all of the
following:
   (1) Identifies the type, size, and energy use level of the
building or facility and the major energy using systems of the
building or facility.
   (2) Determines appropriate energy conservation maintenance and
operating procedures.
   (3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
   (e) "Energy conservation maintenance and operating procedure"
means a modification or modifications in the maintenance and
operations of a building or facility, and any installations therein
(based on the use time schedule of the building or facility), which
are designed to reduce energy consumption in the building or facility
and which require no significant expenditure of funds.
   (f) "Energy conservation measure" means an installation or
modification of an installation in a building or facility that is
primarily intended to reduce energy consumption or allow the use of a
more desirable energy source.
   (g) "Energy conservation project" means an undertaking to acquire
and to install one or more energy conservation measures in a building
or facility, and technical assistance in connection with any the
undertaking.
   (h) "Facility" means any major energy using system of an eligible
institution whether or not housed in a building.
   (i) "Hospital" means a public or nonprofit institution which is
both of the following:
   (1) A general hospital, tuberculosis hospital, or any other type
of hospital, other than a hospital furnishing primarily domiciliary
care.
   (2) Duly authorized to provide hospital services under the laws of
this state.
   (j) "Hospital building" means a building housing a hospital and
related operations, including laboratories, laundries, outpatient
departments, nurses' home and training activities, and central
service operations in connection with a hospital, and also includes a
building housing education or training activities for health
professions personnel operated as an integral part of a hospital.
   (k) "Local government building" means a building that is primarily
occupied by offices or agencies of a unit of local government or by
a public care institution.
   (l) "Project" means a purpose for which an allocation may be
requested and made under this chapter.  Those purposes shall include
energy audits, energy conservation and operating procedures, energy
conservation measures, energy conservation projects, and technical
assistance programs.
   (m) "Public care institution" means a public or nonprofit
institution that is any of the following:
   (1) A long-term care institution.
   (2) A rehabilitation institution.
   (3) An institution for the provision of public health services,
including related publicly owned services such as laboratories,
clinics, and administrative offices operated in connection with the
institution.
   (4) A residential child care center.
   (n) "Public or nonprofit institution" means an institution owned
and operated by any of the following:
   (1) The state, a political subdivision of the state, or an agency
or instrumentality of either.
   (2) An organization exempt from income tax under Section 501(c)(3)
of the Internal Revenue Code of 1954.
   (3) In the case of public care institutions, an organization also
exempt from income tax under Section 501(c)(4) of the Internal
Revenue Code of 1954.
   (o) "School" means a public or nonprofit institution, including a
local educational agency, which does any of the following:
   (1) Provides, and is legally authorized to provide, elementary
education or secondary education, or both, on a day or residential
basis.
   (2) Provides, and is legally authorized to provide, a program of
education beyond secondary education, on a day or residential basis
and does all of the following:
   (A) Admits as students only persons having a certificate of
graduation from a school providing secondary education, or the
recognized equivalent of that certificate.
   (B) Is accredited by a nationally recognized accrediting agency or
association.
   (C) Provides an education program for which it awards a bachelor's
degree or higher degree or provides not less than a two-year program
that is acceptable for full credit toward such a degree at any
institution which meets the requirements of subparagraphs (A) and (B)
and which provides such a program.
   (3) Provides not less than a one-year program of training to
prepare students for gainful employment in a recognized occupation
and which meets the requirements of paragraph (2).
   (p) "School building" means a building housing classrooms,
laboratories, dormitories, athletic facilities, or related facilities
operated in connection with a school.
   (q) "Technical assistance costs" means costs incurred for the use
of existing personnel or the temporary employment of other qualified
personnel (or both those types of personnel) necessary for providing
technical assistance.
   (r) "Technical assistance program" means assistance to schools,
hospitals, local government, and public care institutions,  and
includes, but is not limited to:
   (1) Conducting specialized studies identifying and specifying
energy savings and related cost savings that are likely to be
realized as a result of either of the following:
   (A) Modification of maintenance and operating procedures in a
building or facility, in addition to those modifications implemented
after the preliminary energy audit.
   (B) Acquisition and installation of one or more specified energy
conservation  measures in the building or facility, or as a result of
both.
   (2) Planning of specific remodeling, renovation, repair,
replacement, or insulation projects related to the installation of
energy conservation measures in the building or facility.
   (3) Developing and evaluating alternative project implementation
methods and proposals.
   (s) "Unit of local government" means a unit of general purpose
government below the state or a special district.
  SEC. 6.  Section 25412.5 of the Public Resources Code is repealed.

  SEC. 7.  Section 25413 of the Public Resources Code is amended to
read:
   25413.  Applications may be approved by the commission only in
those instances where the eligible institution has furnished
information satisfactory to the commission that the costs of the
project, plus interest on state funds loaned, calculated in
accordance with Section 25415, will be recovered through savings in
the cost of energy to such institution during the repayment period of
the allocation.
  SEC. 8.  Section 25415 of the Public Resources Code is amended to
read:
   25415.  (a) Each eligible institution to which an allocation has
been made under this chapter shall repay the principal amount of the
allocation, plus interest, in not more than 30 equal semiannual
payments, as determined by the commission.  The first semiannual
payment shall be made on or before December 22 of the fiscal year
following the year in which the project is completed.  The repayment
period shall not exceed the life of the equipment, as determined by
the commission, or the lease term of the building in which the energy
conservation measures will be installed.
   (b) Notwithstanding any other provision of law, the commission
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not lower than the
Pooled Money Investment Account.
   (c) The governing body of each eligible institution shall annually
budget an amount at least sufficient to make the semiannual payments
required in this section.  The amount shall not be raised by the
levy of additional taxes but shall be obtained by a savings in energy
costs or other services.
  SEC. 9.  Section 25416 of the Public Resources Code is amended to
read:
   25416.  (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund.  Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
commission without regard to fiscal year.
   (b) The money in the account shall consist of all money authorized
or required to be deposited in the account by the Legislature and
all money received by the commission pursuant to Sections 25414 and
25415.
   (c) The money in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the commission.
   (d) The commission may contract and provide grants for services to
be performed for eligible institutions.  Services may include, but
are not limited to, feasibility analysis, project design, field
assistance, and training.  The amount expended for those services
shall not exceed 10 percent of the balance in the account, as
determined by the commission on July 1 of each year.
   (e) The commission may make grants to demonstrate energy
efficiency technologies and market transformation projects at
appropriate locations throughout the state.  The amount expended for
grants shall not exceed 5 percent of the balance in the account, as
determined by the commission on July 1 of each year.
   (f) The commission may charge a fee for the services provided
under subdivision (d) and those fees shall be deposited in the
account.
  SEC. 10.  Section 25417.5 of the Public Resources Code is amended
to read:
   25417.5.  (a) In furtherance of the purposes of the commission as
set forth in this chapter, the commission may also do all of the
following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority or the California Infrastructure and Economic
Development Bank, from the proceeds of revenue bonds issued by either
of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440).
   (3) Sell loans made pursuant to this chapter or Chapter 5.4
(commencing with Section 25440), at prices determined in the sole
discretion of the commission, to the California Economic Development
Financing Authority or the California Infrastructure and Economic
Development Bank to raise funds to enable the commission to make
loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary in
connection with the pledge or sale of loans pursuant to paragraph (2)
or (3), or the borrowing of money as provided in paragraph (1),
containing any provisions that may be required by the California
Economic Development Financing Authority or the California
Infrastructure and Economic Development Bank as conditions of issuing
bonds to fund loans to, or the purchase of loans from, the
commission.
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the commission may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
commission is pledging loans or the principal and interest payment on
loans, and may also agree to have the loans held by bond trustees or
by independent collateral or escrow agents and to direct that
payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The commission may employ financial consultants, legal
advisers, accountants, and other service providers as may be
necessary in its judgment in connection with activities pursuant to
this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
the doing of things authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.4 (commencing with Section 25440), and
is supplemental and additional to powers conferred by other laws.
  SEC. 11.  Section 25419 of the Public Resources Code is amended to
read:
   25419.  In addition to the powers specifically granted to the
commission by the other provisions of this chapter, the commission
shall have the following powers:
   (a) To establish qualifications and priorities, and evaluation
criteria consistent with the objectives of this chapter, for making
allocations.
   (b) To establish those procedures and policies as may be necessary
for the administration of this chapter.
  SEC. 12.  Section 25421 of the Public Resources Code is amended to
read:
   25421.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect only until January 1, 2011, and as of  that
date is repealed, unless a later enacted statute, which is enacted
before January 1, 2011, deletes or extends that date.
   (b) All loans outstanding as of January 1, 2011, shall continue to
be repaid on a semiannual basis, as specified in Section 25415,
until paid in full.  All unexpended funds in the State Energy
Conservation Assistance Account on January 1, 2011, and thereafter,
except to the extent those funds are encumbered pursuant to Section
25417.5, shall revert to the General Fund.
  SEC. 13.  Section 25441 of the Public Resources Code is amended to
read:
   25441.  The commission shall provide financial assistance to local
jurisdictions for the purpose of providing staff training and
support services, such as planning, design, permitting, energy
conservation, comprehensive energy management, project evaluation,
and development of alternative energy resources.
  SEC. 14.  Section 25442 of the Public Resources Code is amended to
read:
   25442.  The commission shall provide loans to local jurisdictions
for the purposes of financing energy audits, feasibility studies,
energy conservation measures and projects, engineering and design,
legal and financial analyses, and technical assistance as part of the
Technical Assistance Program, as defined by subdivision (r) of
Section 25411, and for improving the operating efficiency of existing
local transportation systems.
  SEC. 15.  Section 25442.5 of the Public Resources Code is repealed.

  SEC. 16.  Section 25442.7 of the Public Resources Code is amended
to read:
   25442.7.  (a) Loans under this article may not exceed one million
dollars ($1,000,000) for any one local jurisdiction, unless the
commission determines, by unanimous vote, that the public interest
and objectives of this chapter would be better served at a higher
loan amount.
   (b) Loan repayments shall be made in accordance with a schedule
established by the commission.  Repayment of loans shall be made in
full unless the commission determines, by unanimous vote, that the
public interest and objectives of this chapter would be better served
by negotiating a reduced loan repayment for a project which failed
to meet the technical or financial performance criteria through no
fault of the local jurisdiction.
  SEC. 17.  Section 25443.5 of the Public Resources Code is amended
to read:
   25443.5.  (a) In furtherance of the purposes of the commission as
set forth in this chapter, the commission may also do all of the
following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority or the California Infrastructure and Economic
Development Bank, from the proceeds of revenue bonds issued by either
of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410).
   (3) Sell loans made pursuant to this chapter or Chapter 5.2
(commencing with Section 25410), at prices determined in the sole
discretion of the commission, to the California Economic Development
Financing Authority or the California Infrastructure and Economic
Development Bank to raise funds to enable the commission to make
loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary in
connection with the pledge or sale of loans pursuant to paragraph (2)
or (3), or the borrowing of money as provided in paragraph (1),
containing any provisions that may be required by the California
Economic Development Financing Authority or the California
Infrastructure and Economic Development Bank as conditions of issuing
bonds to fund loans to, or the purchase of loans from, the
commission.
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the commission may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
commission is pledging loans or the principal and interest payment on
loans, and may also agree to have the loans held by bond trustees or
by independent collateral or escrow agents and to direct that
payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The commission may employ financial consultants, legal
advisers, accountants, and other service providers as may be
necessary in its judgment in connection with activities pursuant to
this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
the doing of things authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.2 (commencing with Section 25410), and
is supplemental and additional to powers conferred by other laws.
  SEC. 18.  Section 25445 of the Public Resources Code is amended to
read:
   25445.  The commission shall design a local jurisdiction energy
assistance program for the purpose of providing financial assistance
under Article 2 (commencing with Section 25441) and providing loans
under Article 3 (commencing with Section 25442).  A local
jurisdiction's energy assistance program shall be funded through the
commission's existing local government assistance programs, except
that if a project is not eligible for funding under an existing
program, the commission may fund the project under this chapter.
  SEC. 19.  Section 25446 of the Public Resources Code is repealed.

  SEC. 20.  Section 25447.2 of the Public Resources Code is repealed.

  SEC. 21.  Section 25449.1 of the Public Resources Code is amended
to read:
   25449.1.  The commission shall expend petroleum violation escrow
funds to supplement, and not supplant, other available funds in order
to provide loans to school districts to purchase, maintain, and
evaluate energy efficient equipment and small power production
systems.
  SEC. 22.  Section 25449.3 of the Public Resources Code is amended
to read:
   25449.3.  (a) The Local Jurisdiction Energy Assistance Account is
hereby created in the General Fund.  All money appropriated for
                                           purposes of this chapter
and all money received from local jurisdictions from loan repayments
shall be deposited in the account and disbursed by the Controller as
authorized by the commission.
   (b) The commission may charge a fee for the services provided
under this chapter.
   (c) The commission may contract for services to be performed by
eligible institutions, as defined in subdivision (c) of Section
25411.  Those services shall include, but are not limited to,
performance of a feasibility analyses and providing project design,
field, evaluation, and operation and training assistance.  The amount
expended for contract services shall not exceed 10 percent of the
annual scheduled loan repayment to the Local Jurisdiction Energy
Assistance Account, as determined by the commission not later than
July 1 of each fiscal year.
  SEC. 23.  Section 25449.4 of the Public Resources Code is amended
to read:
   25449.4.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect until January 1, 2011, and as of that date is
repealed, unless a later enacted statute which is enacted before
January 1, 2011, deletes or extends that date.
   (b) All loans outstanding as of January 1, 2011, shall continue to
be repaid in accordance with a schedule established by the
commission pursuant to Section 25442.7, until paid in full.  All
unexpended funds in the Local Jurisdiction Energy Assistance Account
on January 1, 2011, and thereafter, except to the extent that those
funds are encumbered pursuant to Section 25443.5, shall be deposited
in the Federal Trust Fund and be available for the purposes for which
federal oil overcharge funds are available pursuant to court
judgment or federal agency order.