BILL ANALYSIS                                                                                                                                                                                                    1
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   SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                  DEBRA BOWEN, CHAIRWOMAN


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|SB 1298 - Senate EU&C         |Hearing Date:April 13,    | S|
|Committee                     |1999                      |  |
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|As Amended:April 5, 1999      |                          | B|
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                         DESCRIPTION
  
  This bill  provides $14 million from the Petroleum Violation  
Escrow Account (PVEA) to the California Energy Commission  
(CEC) for energy conservation projects, including grants to  
reduce the cost of zero-emission vehicles and  
infrastructure purchased by local air quality management  
districts, cities, counties, the Department of General  
Services, the Senate Rules Committee, and the Assembly  
Rules Committee.

                          BACKGROUND
  
PVEA funds are disbursements from the federal government  
arising from court judgments and settlements of oil company  
violations of federal regulations from 1973-1981.  The  
funds are administered by various federal departments and  
are available to the states for specified purposes which  
generally must relate to energy conservation.  The CEC is  
the California agency charged with determining whether a  
given proposal meets the criteria for PVEA funding.












In 1997, the last year in which legislative PVEA projects  
were funded, roughly $33 million was available.  This year,  
the PVEA account has roughly $14 million, of which $9  
million is budgeted for low income residence weatherization  
work performed by the California Conservation Corps and $1  
million is budgeted for energy conservation work by the  
CEC, leaving about $4 million available for individual  
member projects.

Recently-approved PVEA projects have included funding for  
grants to municipalities for energy conservation measures,  
funding for CEC energy efficiency and demonstration  
programs, funding for alternative fuel vehicles, and  
funding for local energy conservation measures and  
transportation efficiency programs.

                           COMMENTS
  
1)This bill is the Senate PVEA vehicle and it will be  
  amended to include any projects requested by a Senator  
  which the CEC determines to be qualified for PVEA  
  funding.

2)Given the relatively low amount of money available, the  
  prospects for funding individual PVEA requests this year  
  are poor.  This bill is simply a vehicle to itemize  
  projects should additional PVEA monies become available.

                          POSITIONS
  
  Support:
  None reported to Committee.

  Oppose:
  None reported to Committee.


Randy Chinn 
SB 1298 Analysis
Hearing Date:  April 13, 1999