BILL NUMBER: AB 2705	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   APRIL 4, 2000

INTRODUCED BY   Committee on Agriculture (Cardoza (Chair), Maldonado
(Vice Chair), Briggs, Florez, House, Reyes, Thomson, and Wiggins)

                        FEBRUARY 25, 2000

   An act to add Chapter 7.5 (commencing with Section 25650) to
Division 15 of the Public Resources Code, relating to energy
assistance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2705, as amended, Committee on Agriculture.  Agricultural
industry energy program.
   Under existing law, there is a loan program to assist low-income
fishing fleet operators reduce their energy costs and conserve fuel
by providing low-interest loans to those operators.   Prior acts
have also appropriated federal oil overcharge funds in the Petroleum
Violation Escrow Account to the State Energy Resources Conservation
and Development Commission for a farm energy assistance program.

   This bill would require  the State Energy Resources
Conservation and Development Commission to establish an agricultural
industry energy program to provide loans for the purchase of
equipment and services for agriculture energy efficiency and
development demonstration projects.  The bill would provide that the
loans have a repayment period of not more than 7 years, and bear
interest at a rate not less than 2% below the rate earned by moneys
in the Pooled Money Investment Account.  Funds   funds
 from loan repayments and interest  would  
on loans made by the commission pursuant to an agriculture energy
assistance program to  be  required to be 
deposited in the Energy Technologies Research, Development, and
Demonstration Account, and upon appropriation,  would
  to  be available for loans and technical
assistance.   The bill would provide that the loans have a
repayment period of not more than 7 years, and bear interest at a
rate not less than 2% below the rate earned by moneys in the Pooled
Money Investment Account. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 7.5 (commencing with Section 25650) is added to
Division 15 of the Public Resources Code, to read:

      CHAPTER 7.5.  AGRICULTURAL INDUSTRY ENERGY PROGRAM

   25650.  (a) The commission shall establish an agricultural
industry energy program for loans for the  
   25650.  (a) All funds from loan repayments and interest that
become due and payable for loans made by the commission pursuant to
an agriculture energy assistance program shall be deposited in the
Energy Technologies Research, Development, and Demonstration Account,
and shall be available for loans and technical assistance pursuant
to this section, upon appropriation in the Budget Act.  Up to 20
percent of the annual appropriation shall be available for technical
assistance.
   (b) Loans made pursuant to this section shall be for the 
purchase of  equipment and services for agriculture energy efficiency
and development demonstration projects, including, but not limited
to, production of methane or ethanol, use of wind, photovoltaics, and
other sources of energy for irrigation pumping, application of load
management conservation techniques, improvements in water pumping and
pressurization techniques, and conservation tillage techniques.

   (b)  
   (c)  The loans shall contain terms providing for a repayment
period of not more than seven years and for interest at a rate that
is not less than 2 percent below the rate earned by moneys in the
Pooled Money Investment Account.  
   (c) The funds from loan repayments and interest shall be deposited
in the Energy Technologies Research, Development, and Demonstration
Account and shall be available for loans and technical assistance
pursuant to this section, upon appropriation in the Budget Act.  Up
to 20 percent of the annual appropriation shall be available for
technical assistance.