BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

AB 1663 ()

Hearing Date:  8/23/99                      Amended:  
8/17/99       
Consultant:  Bob Franzoia      Policy Vote: E,U&C 10-0
____________________________________________________________ 

BILL SUMMARY: 

AB 1663 would do the following relating to energy  
conservation assistance administered by the State Public  
Works Board (SPWB) and the California Energy Commission  
(CEC):
1)Provides that the total amount of funds authorized ($500  
  million), instead of the total annual amount authorized  
  ($50 million) and available for use until 1992-93, be  
  available for use by the SPWB until January 1, 2005.
2)Extends from January 1, 2000 to January 1, 2005, the  
  policy of the state to encourage 3rd party financing of  
  energy and water projects at state-owned sites and sets  
  forth incentive benefits between the state and the  
  entities siting the facilities.
3)Extend the authorization for the State Energy  
  Conservation Assistance Account and the Local  
  Jurisdiction Energy Assistance Account in the General  
  Fund from January 1, 2001 and 2002, respectively, to  
  January 1, 2011.

                         Fiscal Impact (in thousands)
  
Major Provisions                     1999-00          2000-01   2001-02             
  Fund  

Sunset extension   Unknown moderate costs to issueGeneral/
for energy loan    revenue debt; costs likely offset byVarious
programs           future energy savings               Special
                                                              

STAFF COMMENTS:  

The SPWB is authorized to issue up to $50 million annually  
in revenue bonds for ten years or a maximum of $500 million  
to fund project that reduce energy costs at state  
facilities.  To date, the program has financed over $200  










million in projects at state agencies, community colleges,  
and California State University and University of  
California campuses.  This bill would extend the program  
sunset until January 1, 2005 and allow for the maximum  
amount authorized to be issued.

The CEC administers both the State Energy Conservation  
Assistance Account and the Local Jurisdiction Energy  
Assistance Account to finance energy efficiency projects by  
local governments.  These accounts receive funding from the  
Petroleum Violation Escrow Account funds.