BILL ANALYSIS
Appropriations Committee Fiscal Summary
AB 2705 (Cardoza)
Hearing Date: 8/14/00 Amended: 8/8/00
Consultant: Bob Franzoia Policy Vote: E, U&C 6-0
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BILL SUMMARY:
AB 2705 would require that funds received from loan
payments and interest on loans made by the California
Energy Commission (CEC) for the Agricultural Energy
Assistance Program (AEAP) be deposited in Energy
Technologies Research, Development, and Demonstration
Account (ETRDDA). The bill would provide that the loans
have a repayment period of not more than seven years and
bear interest at a rate not less than two percent below the
rate earned by moneys in the Pooled Money Investment
Account. The bill would repeal a program for the
development of solar technology in agriculture.
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02 2002-03
Fund
Redirection $200 annually for six years PVEA
STAFF COMMENTS:
The AEAP was created in 1986 with an appropriation of $3
million from the Petroleum Violation Escrow Account (PVEA)
for the purpose of making low interest loans to
agricultural entities. Currently, $1.2 million of
principal and interest remains outstanding. The CEC
anticipates receiving these loan repayments, which are
deposited in the PVEA, over the next six years.
This bill would direct those repayments from the PVEA to
the ETRDDA.