BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1663
                                                          Page  1

Date of Hearing:   April 19, 1999

          ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE 
                     Roderick Wright, Chair
 AB 1663 (Committee on Utilities and Commerce) - As Introduced:   
                         March 11, 1999
  
SUBJECT  :   Energy conservation assistance:  loans and grants.

  SUMMARY  :   Extends the sunset date of the State Energy  
Conservation Assistance Account (Assistance Account), and  
authorizes the State Energy Resources Commission and Development  
Commission (commonly referred to the Energy Commission (CEC)) to  
offer energy efficiency project development assistance, grants  
and loans to local public agencies.  Specifically,  this bill  :  

1)Requires the CEC 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.

2)Makes various changes with respect to the terms and conditions  
  for the repayment of energy assistance loans and the criteria  
  for funding grants and loans;

3)Revises certain of CEC's powers with respect to the  
  administration of the act.

  EXISTING LAW :

1)Creates the 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.

2)Authorizes CEC to make loans to local governments owning, or  
  leasing from entities other than privately-owned electric  
  utilities, street lighting systems for purposes of converting  
  those systems to improve energy efficiency.

3)Requires CEC to provide loans to local jurisdictions for the  
  purchase, maintenance, and evaluation of specified energy  
  efficient equipment, small power production systems, and local  








                                                          AB 1663
                                                          Page  2

  transportation systems.

  FISCAL EFFECT  :   Unknown.

  COMMENTS  :   

1.Currently, local governments and school districts can borrow  
  money from the State for projects that pay for themselves  
  through savings in energy costs.  The CEC administers two  
  Revolving Loan Accounts for this purpose:  1) the Energy  
  Conservation Assistance Account funded by the General Fund,  
  and 2) the Local Jurisdiction Account (LJA) funded through  
  Petroleum Violation Escrow Account (PVEA) funds.

2.This bill would extend the sunset date of the assistance  
  account and the LJA, which are due to expire in January 2001  
  and 2002, to the year 2011.  This bill would additionally  
  authorize CEC to offer energy efficiency project development  
  assistance, grants and loans to local public agencies.

3.According to CEC, which is the sponsor of this bill, school  
  districts and local governments often lack the necessary  
  expertise and discretionary funding necessary to fully analyze  
  and fund energy savings alternatives.  This bill would extend  
  funding to assist school districts, local governments, and  
  special districts to save money through reduced energy costs.   


  REGISTERED SUPPORT / OPPOSITION  :   

  Support  

California Energy Commission (Sponsor)

  Opposition  

None on file.
  
Analysis Prepared by  :    Joseph Lyons / U. & C. / (916) 319-2083