BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1298| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1298 Author: Senate Energy, Utilities, and Communications Committee Amended: 5/28/99 Vote: 21 SENATE ENERGY, U. & C. COMMITTEE : 9-0, 4/13/99 AYES: Bowen, Baca, Brulte, Hughes, Kelley, Mountjoy, Solis, Speier, Vasconcellos NOT VOTING: Alarcon, Peace SENATE APPROPRIATIONS COMMITTEE : 13-0, 5/27/99 AYES: Johnston, Alpert, Bowen, Burton, Escutia, Johnson, Karnette, Kelley, Leslie, McPherson, Mountjoy, Perata, Vasconcellos SUBJECT : Energy resources: federal oil overcharge funds SOURCE : Author DIGEST : This bill provides $14 million from the Petroleum Violation Escrow Account to the California Energy Commission 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 State Department of General Services, the Senate Rules Committee, and the Assembly Rules Committee, and for a regional bicycle project. ANALYSIS : The Petroleum Violation Escrow Account (PVEA) CONTINUED SB 1298 Page 2 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 California Energy Commission (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 (CCC) 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. This bill appropriates the money to the CEC for grants that are available to all local air quality management districts, on a matching basis, for local programs to buy down the cost of zero-emission vehicles and infrastructure ($2.5 million) and for grants that are available to all counties and cities, on a competitive basis, to buy-down the cost of acquiring zero-emission vehicles and infrastructure for use in their own fleets ($1 million). This bill also appropriates $500,000 for grants to the State Department of General Services, the Senate Committee on Rules and the Assembly Committee on Rules to acquire zero-emission vehicles and infrastructure. The bill also appropriates $250,000 to the San Joaquin Council of Governments for a regional bicycle proejct. Comments This bill is the Senate PVEA vehicle and it will be amended SB 1298 Page 3 to include any projects requested by a Senator which the CEC determines to be qualified for PVEA funding. 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. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No Appropriates $14 million from the PVEA. NC:cm 5/29/99 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****