BILL ANALYSIS
SB 1299
Page 1
SENATE THIRD READING
SB 1299 (Utilities Committee)
As Amended August 18, 2000
2/3 vote
SENATE VOTE :37-0
UTILITIES & COMMERCE 12-0 APPROPRIATIONS 20-0
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|Ayes:|Wright, Pescetti, |Ayes:|Migden, Campbell, |
| |Calderon, Campbell, | |Ackerman, Alquist, |
| |Cardenas, Maddox, | |Aroner, Ashburn, Brewer, |
| |Mazzoni, Papan, Reyes, | |Cedillo, Corbett, Davis, |
| |Villaraigosa, Vincent, | |Kuehl, Maldonado, Papan, |
| |Wesson | |Romero, Shelley, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Zettel |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Extends the sunsets on two energy efficiency loan
programs administered by the California Energy Commission (CEC)
for schools, local governments, and special districts, and
revises CEC reporting requirements. Specifically, this bill :
1)Extends, by 10 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).
3)Requires CEC report to the Legislature and Legislative Analyst
relating to the progress and status of the public-interest
energy research (PIER) programs be submitted on a semi-annual
basis instead of quarterly.
4)Specifies that CEC's annual report on PIER projects be
submitted to the Legislature no later than March 31 of each
year.
EXISTING LAW :
1)Creates ECAA, administered by CEC, to provide low-interest
loans and technical assistance to eligible institutions, as
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Page 2
defined, until January 1, 2001, for specified purposes
relating to energy efficiency projects.
2)Creates 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.
3)Requires CEC to submit quarterly reports to the Legislative
Analyst and to the appropriate fiscal and policy committees of
the Legislature relating to the status of the PIER program.
4)Requires CEC to prepare and submit to the Legislature an
annual report on awards and grants made by CEC for the PIER
program.
FISCAL EFFECT : CEC estimates a delay in the receipt of $26
million of reversion revenues to the General fund over a 10-year
period and $15.6 million to the Federal Trust Fund over a 9-year
period due to extension of the sunset dates. Cumulative
administrative expenses through through the extended sunset date
of January 1, 2011 would be approximately $1.5 million, which
would equate to a corresponding reduction in combined revenues
to the General Fund and the Federal Trust Fund.
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
Revolving Loan Accounts for this purpose: 1) ECAA; and 2) LJA.
ECAA provides low-interest loans to schools, local
governments, and special districts for energy efficiency
projects, such as high-efficiency lighting upgrades in
schools. 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
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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%,
which is a very competitive rate.
3)Reporting requirements. Current law requires CEC to submit
quarterly reports to the Legislative Analyst and to the
appropriate policy and fiscal committees of the Legislature
regarding the status of the PIER program. The reports provide
an accounting of the activities during the previous quarter.
Generally, these reports provide a listing of grants awarded
and progress of the various projects that have received
funding. This bill would require that these quarterly reports
be submitted on a semi-annual basis instead of quarterly.
Additionally, this bill specifies that CEC's annual report on
PIER projects be submitted to the Legislature no later than
March 31 of each year.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
FN: 0006346