BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 46 -  Blakeslee                                Hearing Date:   
          June 30, 2009              A
          As Amended:         June 22, 2009            FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  establishes the Energy Conservation Assistance  
          Account (ECAA) to provide loans to schools, hospitals, and local  
          governments for financing energy conservation projects.  This  
          program sunsets on January 1, 2011.

           This bill  extends that sunset until January 1, 2020.

           Current law  establishes the Local Jurisdiction Energy Assistance  
          Account (LJEA) to loan specified monies to local governments for  
          energy conservation projects, small power production systems,  
          and to improve the efficiency of local transportation systems.    
          This program sunsets on January 1, 2011.

           This bill  extends that sunset until January 1, 2020.

           Current law  establishes the State Assistance Fund for  
          Enterprise, Business, and Industrial Development Corporation  
          (SAFE-BIDCO), which administers several state and federal loan  
          and loan guarantee programs for small businesses.  The board of  
          SAFE-BIDCO is comprised of six members of the public, a member  
          of the Governor's cabinet, and a member of the California Energy  
          Commission (CEC).

           This bill  deletes the member of the CEC from the SAFE-BIDCO  
          board.

                                      BACKGROUND
           
          The ECAA is a $26 million low interest program for local  
          governments, colleges, schools, and hospitals to finance energy  
          efficiency projects.  The projects must have a payback of not  











          more than 10 years.  The loans, which will finance up to 100% of  
          the cost of the project, are repaid from the energy cost  
          savings.  The ECAA program is continuously appropriated.

          The LJEA was funded from penalties resulting from federal  
          lawsuits against oil companies for overcharging.  Since it's  
          inception in the 1980's the LJEA has funded over 600 projects.   
          It is a much smaller program than the ECAA.

          SAFE-BIDCO administers seven state and federal small-business  
          loan program, one of which is for energy efficiency.  

                                       COMMENTS
           
          The LJEA is a relatively small account which ideally should be  
          folded into the ECAA.  However, the CEC believes that if the  
          program is discontinued, the funds in the LJEA, totalling  
          several million dollars, must be returned to the federal  
          government.  
                                           
           The CEC does not oppose the bill.
                                           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (76-0)
          Assembly Appropriations Committee  (17-0)
          Assembly Utilities and Commerce Committee                       
          (14-0)

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          California Hospital Association
          City of San Jose
          South Coast Air Quality Management District

           Oppose:
           
          None on file











          













          Randy Chinn 
          AB 46 Analysis
          Hearing Date:  June 30, 2009