BILL NUMBER: AB 2705	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN ASSEMBLY   APRIL 4, 2000

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

                        FEBRUARY 25, 2000

   An act to add Chapter 7.5 (commencing with Section 25650) to
Division 15 of, and to repeal Section 25615 of, the Public Resources
Code, relating to energy assistance and technology.


	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 funds from loan repayments and interest on
loans made by the commission pursuant to an agriculture energy
assistance program to be deposited in the Energy Technologies
Research, Development, and Demonstration Account, and upon
appropriation, 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.
   Existing law establishes a state program managed by the Department
of Food and Agriculture and the commission to assist in the
development of solar technology in agriculture.
   This bill would repeal that provision.
   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) 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.
   (c) The loans shall contain terms  providing 
 that provide  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.
  SEC. 2.  Section 25615 of the Public Resources Code is repealed.