BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1663
                                                          Page  1

Date of Hearing:   May 12, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

   AB 1663 (Utilities and Commerce Committee) - As Introduced:  
                         March 11, 1999 

Policy Committee:                              U&C  Vote:11-0

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

  This bill  extends the sunsets on a number of energy  
conservation-related assistance and subsidy programs and  
modifies the structure of a particular California Energy  
Commission (CEC) energy assistance program for local  
jurisdictions and public institutions, as follows:

1)Extends, by 10 years to January 1, 2011, the CEC-administered  
  State Energy Conservation Assistance (SECA) program, by which  
  local governments and other public institutions are awarded  
  loans and grants to maximize energy use savings.

2)Broadens the purposes for which CEC technical assistance may  
  be provided under SECA, increases the maximum maturity, from  
  11 years to 15 years, for SECA loans, and specifies that the  
  maximum allowable annual level of funding for energy-related  
  services for eligible institutions is 10% of the July 1st  
  balance of the SECA Account, rather than 10% of the annual  
  appropriations from that account.

3)Allows CEC to award SECA grants to demonstrate "market  
  transformation" projects and specifies that the maximum annual  
  level of grant awards is 5% of the July 1 balance of the SECA  
  Account rather than 5% of the annual appropriations from that  
  account. 

4)Extends, by nine years to January 1, 2011, the sunset on the  
  CEC's Local Jurisdiction Energy Assistance (LJEA) program,  
  eliminates a 25% local match for receiving financial  
  assistance under LJEA, and modifies the purposes for which  
  financial assistance may be applied.








                                                          AB 1663
                                                          Page  2


5)Extends, for five years to January 1, 2005, the sunset on the  
  State Public Works Board's (PWB's) authority to issue revenue  
  debt to finance cogeneration equipment, alternative energy  
  equipment and conservation measures for public buildings and  
  specifies that the aggregate debt authorization for the  
  10-year period starting with FY 1982-83 is $500 million.

6)Extends, by five years to January 1, 2005, the sunset on  
  legislative findings and declarations related to the need to  
  promote all feasible means of water conservation.

  FISCAL EFFECT  :

Moderate costs, about $300,000 annually, resulting from  
extension of the sunsets on CEC financial assistance programs  
and on the PWB's authority to issue revenue debt to finance  
energy conservation measures at public buildings.  (General Fund  
and various special funds.)

  COMMENTS  :

  Rationale  .  The author wishes to extend energy assistance  
related programs at both the CEC and the PBW (at the Department  
of General Services) for another five and 10 years, depending on  
the particular program.  These programs have generally proved to  
be successful and cost-effective with savings, in terms of  
reduced state and local energy conservation, exceeding costs.  

  Analysis Prepared by  :    Steve Archibald / APPR. / (916)319-2081