BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                  SB 1298|
|Office of Senate Floor Analyses   |                         |
|1020 N Street, Suite 524          |                         |
|(916) 445-6614         Fax: (916) |                         |
|327-4478                          |                         |
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                       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





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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  







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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

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