BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1299
Author: Senate Energy, Utilities, and Communications
Committee
Amended: 8/18/00
Vote: 21
PRIOR SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : 74-0, 8/25/00 - See last page for vote
SUBJECT : Energy resources conservation
SOURCE : Author
DIGEST : This bill extends, until January 2011, the
sunset date on two energy efficiency loan programs
administered by the California Energy Commission, and
revises the California Energy Commission's reporting
requirements.
Assembly Amendments delete the prior version. As it left
the Senate, the bill eliminated the requirement for
specified reports regarding low-income weatherization
programs.
ANALYSIS : Existing law:
1.Creates the Energy Conservation Assistance Account
(ECAA), administered by the California Energy Commission
(CEC), to provide low-interest loan and technical
assistance to eligible institutions, as defined, until
CONTINUED
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January 1, 2001, for specified purposes relating to
energy efficiency projects.
2.Creates the Local Jurisdiction Account (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 public-interest energy research (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.
This bill extends the sunsets on two energy efficiency loan
programs administered by the CEC for schools, local
governments, and special districts, and revises CEC
reporting requirements. Specifically, this bill:
1.Extends, by ten years, to January 1, 2011, the
CEC-administered ECAA.
2.Extends, by nine years, to January 1, 2011, the
CEC-administered LJA.
3.Requires the CEC to report to the Legislature and
Legislative Analyst relating to the progress and status
of the PIER programs to 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.
Comments
CEC's Energy Efficiency Loan Program . Currently, local
governments, school districts, and special districts can
borrow money from CEC for projects that pay for themselves
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through savings in energy costs. CEC administers two
revolving loan accounts for this purpose, the ECAA and the
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.
Governor's Veto of Similar Legislation Last Year . This
bill is very similar to last year's AB 1663, authored by
the Assembly Utilities and Commerce Committee. AB 1663,
which would have extended CEC's two energy efficiency loan
programs, was vetoed by the Governor. In his veto message,
Governor 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 rate for loans from these accounts
are currently set at 5.4 percent, which is a very
competitive rate.
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
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have received funding. This bill requires 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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
CEC estimates a delay in the receipt of $26 million of
reversion revenues to the General Fund over a ten-year
period and $15.6 million to the Federal Trust Fund over a
nine-year period due to extension of the sunset dates.
Cumulative administrative expenses 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.
ASSEMBLY FLOOR :
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs,
Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,
Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Florez, Gallegos, Granlund, Havice, Honda,
House, Jackson, Kaloogian, Knox, Kuehl, Leach, Lempert,
Leonard, Longville, Lowenthal, Machado, Maddox,
Maldonado, Margett, Mazzoni, Migden, Nakano, Olberg,
Oller, Robert Pacheco, Papan, Pescetti, Reyes, Romero,
Runner, Scott, Shelley, Steinberg, Strickland,
Strom-Martin, Thompson, Thomson, Torlakson, Villaraigosa,
Vincent, Washington, Wayne, Wesson, Wiggins, Wildman,
Wright, Zettel, Hertzberg
NC:cm 8/26/00 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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