BILL ANALYSIS
AB 1663
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CONCURRENCE IN SENATE AMENDMENTS
AB 1663 (Utilities Committee)
As Amended August 17, 1999
Majority Vote
ASSEMBLY: 78-1 ( May 27, 1999 ) SENATE: 40-0 ( August 30, 1999 )
Original Committee Reference: U. & C.
SUMMARY : 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.
The Senate amendments continue the 25% local matching
requirement for CEC's Local Jurisdiction Account loan program.
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 reasons 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
transportation systems.
4)Authorizes the State Public Works Board (PWB), until January
1, 2000, to issue revenue bonds, notes, and bond anticipation
notes to finance the cost of cogeneration equipment,
alternative energy equipment, and conservation measures in
public buildings.
AS PASSED BY THE ASSEMBLY , this bill:
1)Requires CEC to provide loans to local jurisdictions for the
purposes of financing energy audits, feasibility studies,
AB 1663
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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)Extends, by 10 years to January 1, 2011, 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.
3)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 SECA account, rather than 10% of the annual
appropriations from that account.
4)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 SECA
Account rather than 5% of the annual appropriations from that
account.
5)Extends, by nine years to January 1, 2011, the sunset on 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.
6)Extends, for five years to January 1, 2005, the sunset on
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 fiscal
year 1982-83 is $500 million.
7)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 PWB's authority to issue revenue debt
to finance energy conservation measures at public buildings.
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(General Fund and various special funds.)
COMMENTS : Currently, local governments and school districts can
borrow money from the state for projects that pay for themselves
through savings in energy costs. CEC administers two Revolving
Loan Accounts for this purpose: 1) the Energy Conservation
Assistance Account (ECAA) funded by the General Fund; and, 2)
the Local Jurisdiction Account funded through Petroleum
Violation Escrow Account funds. The Senate amendments continue
the 25% local matching requirement for local governments and
school districts participating in CEC's Local Jurisdiction
Account loan program.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
FN: 0002795