BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                  AB 1663|
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                       THIRD READING
                              

Bill No:  AB 1663
Author:   Assembly Utilities and Commerce Committee
Amended:  8/17/99 in Senate
Vote:     21

  
  SENATE ENERGY, U.&C. COMMITTEE  :  10-0, 7/13/99
AYES:  Bowen, Alarcon, Baca, Brulte, Hughes, Kelley, Peace,  
  Solis, Speier, Vasconcellos
NOT VOTING: Mountjoy

  SENATE APPROPRIATIONS COMMITTEE:   12-0, 8/23/99
AYES:  Johnston, Alpert, Bowen, Burton, Johnson, Karnette,  
  Kelley, Leslie, McPherson, Mountjoy, Perata, Vasconcellos
NOT VOTING:  Escutia

  ASSEMBLY FLOOR  :  78-1, 5/27/99 - See last page for vote
 

  SUBJECT  :    Energy conservation assistance

  SOURCE  :     Author

 
  DIGEST  :    This bill extends the sunsets on a number of  
energy conservation-related assistance and subsidy  
programs.

  ANALYSIS  :    This bill extends the sunset date on a State  
Public Works Board (SPWB) program which issues revenue  
bonds to finance the cost of cogeneration equipment,  
alternative energy equipment, and conservation measures in  
public buildings until January 1, 2005.

                                                 CONTINUED





                                                     AB 1663
                                                       Page  
2

This bill extends the sunset date until January 1, 2011 for  
two California Energy Commission (CEC) grant and loan  
programs for local governments and public institutions to  
finance energy conservation measures, and makes minor  
changes to those programs.  These two programs are known by  
their account names:  the State Energy Conservation  
Assistance account (SECA) funded by the General Fund, and  
the Local Jurisdiction Energy Assistance account (LJEA)  
funded by Petroleum Violation Escrow Account (PVEA) funds.

This bill extends the sunset date on the authorization for  
a program which allows state agencies to share benefits  
resulting from energy and water projects with the state  
until January 1, 2005.

  Background
  
The SPWB is authorized to issue up to $50 million annually  
in revenue bonds to finance any cost-effective project that  
reduces utility costs at state-owned facilities.  This  
program, which is run out of the Department of General  
Services, has financed over $200 million in projects at  
state agencies, community colleges, and California State  
University and University of California campuses.  This  
program is scheduled to sunset at the end of this year.

The SECA and LJEA are similar programs used to finance  
energy efficiency projects by local governments.  These  
programs, which are administered by the CEC, have funded  
over 500 loans worth over $60 million that have resulted in  
savings of approximately $250 million, according to the CEC  
staff.  The SECA program sunsets on January 1, 2001 and the  
LJEA program sunsets one year later.  This bill extends the  
sunset on both programs until January 1, 2011.

This bill also amends the SECA and LJEA programs to extend  
the maximum loan period for SECA loans from 11 years to 15  
years.

  FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
Local:  No

Unknown moderate costs to issue revenue debt; costs likely  
offset by future energy savings.







                                                     AB 1663
                                                       Page  
3


  SUPPORT  :   (Verified  8/25/99)

Department of General Services

  ASSEMBLY FLOOR  :
AYES:  Aanestad, Ackerman, Alquist, Aroner, Ashburn,  
  Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs,  
  Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,  
  Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,  
  Firebaugh, Florez, Frusetta, Gallegos, Granlund, Havice,  
  Hertzberg, Honda, House, Jackson, Kaloogian, Keeley,  
  Knox, Kuehl, Leach, Lempert, Leonard, Longville,  
  Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni,  
  Migden, Nakano, Olberg, Oller, Robert Pacheco, Rod  
  Pacheco, Papan, Pescetti, Reyes, Romero, Runner, Scott,  
  Shelley, Soto, Steinberg, Strickland, Strom-Martin,  
  Thompson, Thomson, Torlakson, Vincent, Washington, Wayne,  
  Wesson, Wiggins, Wildman, Wright, Zettel, Villaraigosa
NOES:  McClintock
NOT VOTING:  Floyd


NC:sl  8/25/99   Senate Floor Analyses 

               SUPPORT/OPPOSITION:  SEE ABOVE

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