BILL ANALYSIS
AB 2705
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Date of Hearing: April 12, 2000
ASSEMBLY COMMITTEE ON AGRICULTURE
Dennis Cardoza, Chair
AB 2705 (Committee on Agriculture) - As Amended: April 4,
2000
SUBJECT : Agricultural industry energy program.
SUMMARY : Directs the loan repayments and interest from the
Agricultural Energy Assistance Program (AEAP) be deposited into
the Energy Technologies Research Development and Demonstration
Account, and upon appropriation be available for loans and
technical assistance. Further, this bill provides that the loan
repayments not be longer than seven (7) years and bear an
interest rate not less than 2% below Pooled Money Investment
Account rate.
EXISTING LAW authorizes the AEAP, which provides technical
assistance and loans to agricultural entities to develop
projects that demonstrate energy efficiency, and that the
program be administered by the California Energy Commission
(commission). The commission has existing loan authority to
assist low-income fishing fleet operators and other energy
conservation projects and demonstrations.
FISCAL EFFECT : Potential savings to commission by reduced
budget request proposals.
COMMENTS : The AEAP was created by SB 1145 (Mello), Chapter
1341, Statutes of 1986, with $3 million from the Petroleum
Violation Escrow Account (PVEA) for the purpose of providing low
interest loans to demonstrate energy efficient projects by the
agricultural industry. The program was established, however, an
account for the loan and interest payments was not; the
payments have been deposited into the general fund. The
commission has been annually preparing budget change proposals
(BCPs) to return the loan and interest payments back to the
AEAP. This measure will correct this burdensome procedure for
the commission and continue the program until the funds are
deleted.
Since the inception of the AEAP, there have been over 110 loans
totaling $6.2 million funding, various energy efficiency
projects related to agriculture; there have been no defaults.
AB 2705
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Eligible operators include food and fiber farmers, dairy
producers, cattle ranchers, food processors, greenhouse
activities, and irrigation districts. Projects have included:
on-farm efficient water pumping plant performance; on-farm
irrigation water conservation; irrigation district water
delivery system efficiencies; field machinery fuel use
reduction; petrochemical pesticide use reduction; fertilizer
management; food processing energy and water management; and
alternative energy sources.
AB 2705
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REGISTERED SUPPORT / OPPOSITION :
Support
California Energy Commission (Sponsor)
Opposition
None received
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084