BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 262
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 262 (Bass)
          As Amended  September 1, 2009
          Majority vote
           
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          |ASSEMBLY:  |58-15|(June 2, 2009)  |SENATE: |37-0 |(September 3,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    U. & C.  

           SUMMARY  :  Provides direction and authorization to the California  
          Energy Commission (CEC) regarding the use of money received  
          pursuant to the federal American Recovery and Reinvestment Act  
          of 2009 (ARRA) for energy-related activities.  Specifically,  
           this bill:

           1)Authorizes the appropriate state energy and water agencies to  
            administer ARRA funding and directs them to adhere to the  
            principle of accountability while also adhering to existing  
            state policies to promote energy efficiency, including green  
            building practices, promote water conservation, promote the  
            development and use of renewable energy resources, protect the  
            environment, and provide green job training.

          2)States legislative intent that CEC make policy decisions that  
            leverage and maximize the use of these dollars, including, but  
            not limited to, the areas of energy efficiency, renewable  
            energy, water efficiency, weatherization, and green workforce  
            development.

          3)Appropriates $113,093,000 to CEC from the Federal Trust Fund  
            for expenditure consistent with ARRA.

           The Senate amendments  revise the original intent language  
          regarding how ARRA money is to be spent, as well as add the  
          appropriation language necessary to spend that funding. 
           
          AS PASSED BY THE ASSEMBLY  , this bill provided direction and  
          authorization to CEC regarding the use of money received  
          pursuant to ARRA for energy-related activities by:  

          1)Authorizing CEC to award grants from funds received pursuant  
            to the Energy Independence and Security Act of 2007 (EISA) and  








                                                                  AB 262
                                                                  Page  2

            ARRA, as well as enter into contracts to perform functions  
            required to promptly award energy efficiency and conservation  
            block grants.

          2)Increasing the percent of the funds received pursuant for the  
            federal Energy Efficiency and Conservation Block Grant (EECBG)  
            that CEC may use for administrative expenses to 10%.

          3)Authorizing CEC to adopt guidelines governing the award,  
            eligibility, and administration of funding pursuant to ARRA at  
            a publicly noticed meeting.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, this bill would cost $113,093,000 in federal funds. 
           
          COMMENTS  :  Under ARRA, CEC expects the state to receive $226  
          million for State Energy Programs and $56 million for energy  
          efficiency and conservation grants to local governments.   
          Federal law (and current state law) allows CEC to use federal  
          stimulus funds   for grants or loans, with specified  
          requirements on the use of repayment proceeds from any loans  
          made with federal funds.

          This bill authorizes CEC to make grants and enter into contracts  
          to award federal energy efficiency and conservation funds.


           Analysis Prepared by  :    Nina Kapoor / U. & C. / (916) 319-2083 


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          0002939