BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1663| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 **** END ****