BILL ANALYSIS
SB 1299
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Date of Hearing: August 7, 2000
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
SB 1299 (Senate Committee on Energy, Utilities and
Communications) - As Amended: August 7, 2000
AS PROPOSED TO BE AMENDED
SENATE VOTE : 37-0
SUBJECT : Energy resources conservation: low-income
weatherization report.
SUMMARY : Extends the sunsets on two energy efficiency loan
programs administered by the California Energy Commission (CEC)
for schools, local governments, and special districts.
Specifically, this bill :
1)Extends, by ten years to January 1, 2011, CEC-administered
Energy Conservation Assistance Account (ECAA).
2)Extends, by nine years to January 1, 2011, CEC-administered
Local Jurisdiction Account (LJA).
EXISTING LAW :
1)Creates the ECAA, administered by CEC, to provide low-interest
loans and technical assistance to eligible institutions, as
defined, until January 1, 2001, for specified purposes
relating to energy efficiency projects.
2)Creates the LJA, administered by CEC, to provide low-interest
loans and technical assistance to eligible institutions, as
defined, until January 1, 2001, for specified purposes
relating to energy efficiency projects.
FISCAL EFFECT : Unknown.
COMMENTS :
1)CEC's Energy Efficiency Loan Programs . Currently, local
governments, school districts, and special districts can
borrow money from CEC for projects that pay for themselves
through savings in energy costs. CEC administers two
SB 1299
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Revolving Loan Accounts for this purpose: 1) the ECAA; and 2)
the LJA. The ECAA provides low-interest loans to schools,
local governments, and special districts for energy efficiency
projects, such as high-efficiency lighting upgrades in
schools. The LJA provides low-interest loans to local
governments for energy efficiency projects, such as
high-efficiency LED traffic signals. Under both programs, CEC
provides technical assistance to eligible institutions in
order to assist them in identifying potential cost-effective
energy efficiency opportunities.
2)Governor's Veto of Similar Legislation Last Year . This bill
is very similar to last year's AB 1663, authored by the
Assembly Committee on Utilities and Commerce. AB 1663, which
would have extended CEC's two energy efficiency loan programs,
was vetoed by the governor. In his veto message, Governor
Gray Davis stated that, while he was supportive of increasing
energy efficiency in public buildings "there does not appear
to be a demand for energy efficiency loans" and that "loans
are available from private-sector lenders at a lower rate of
interest." This year, however, CEC reports that demand for
the loans is actually outstripping available funds. Since
March of this year, CEC has approved over $9 million in loans
from these accounts, all of which went to various schools
across the state. There is currently available approximately
$5 million for further loans, with requests for $12 million
either pending or under discussion from various school
districts and local jurisdictions. In addition, the interest
rates for loans from these accounts are currently set at 5.4
percent, which is a very competitive rate.
3)Author's Amendment . The author will be presenting amendments
in committee deleting the language in SB 1299 which removes
the requirement that publicly-owned utilities provide a report
on their low-income weatherization programs to CEC and that
CEC submit such information to the Legislature.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
SB 1299
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None on file
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083