BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 1477
                                                                  Page 1

          Date of Hearing:   June 29, 2010

                                  Pedro Nava, Chair
                 SB 1477 (Senate Environmental Safety Committee) - As  
                             Introduced:  March 1, 2010

           SENATE VOTE  :   33-0
          SUBJECT  :   California Pollution Control Financing Authority.

           SUMMARY  :   Makes various changes to the financial and  
          administrative provisions of the California Pollution Control  
          Financing Authority (CPCFA) Act, including changes to the  
          definitions of "project," and "pollution control facility."   
          Declares that the changes are to take effect immediately as an  
          urgency statute.

           EXISTING LAW  :  Establishes the CPCFA with specified powers and  
          duties, and authorizes the CPCFA to approve financing for  
          projects or pollution control facilities to prevent or reduce  
          environmental pollution (Health and Safety Code 44500 et seq.).

           FISCAL EFFECT :   Unknown.

           COMMENTS  :   According to the author, "This bill makes technical,  
          non-controversial changes to the governing statute for CPCFA,  
          which includes changes to the definition of "project" and  
          "pollution control facility."  These unopposed changes come at  
          the recommendation of the Attorney General's office as a means  
          to both modernize and update language in order to meet the  
          intention of last year's SB 832."  SB 832 (Senate Committee on  
          Environmental Quality), Chapter 643, Statutes of 2009, made  
          various changes to the financial and administrative provisions  
          of the CPCFA, including making state agencies eligible  
          participating parties for financing 

          The California State Treasurer's office states, "Last minute  
          amendments to SB 832 [in 2009] had the unintended consequence of  
          limiting whether CPCFA could fund environmental projects to  
          qualify for tax exempt financing under federal law.  SB 832 was  
          intended to clearly allow such financing.  However, the  
          amendment has been interpreted by the Attorney General's office  
          as limiting federally allowable projects to those which also  
          meet a more narrow state definition.  For these reasons, SB 1477  


                                                                  SB 1477
                                                                  Page 2

          seeks to clarify the project definition."



           California State Treasurer (sponsor)

           None received.  

           Analysis Prepared by  :    Shannon McKinney / E.S. & T.M. / (916)