BILL ANALYSIS Ķ
AB 1314
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CONCURRENCE IN SENATE AMENDMENTS
AB 1314 (Wieckowski)
As Amended June 29, 2011
Majority vote
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|ASSEMBLY: |75-0 |(May 26, 2011) |SENATE: |37-0 |(August 31, |
| | | | | |2011) |
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Original Committee Reference: NAT. RES.
SUMMARY : Creates efficiency measures for the California Energy
Commission's (CEC) Alternative and Renewable Fuel and Vehicle
Technology Program's (Program) by streamlining approvals for
small projects or minor changes to projects; authorizing CEC to
adopt guidelines for implementing block grant or incentive
programs; and, allowing pre-approval startup costs to go toward
nonstate matching funds.
The Senate amendments :
1)Require a project that receives more than $75,000 in Program
funds from CEC to be approved at a noticed public meeting.
2)Authorize CEC to delegate to its executive director the
authority to approve either of the following:
a) A contract, grant, loan, or other agreement or award
that receives $75,000 or less in Program funds from CEC;
or,
b) Amendments to a contract, grant, loan, or other
agreement or award as long as the amendments do not
increase the amount of the Program award, change the scope
of the project, or modify the purpose of the agreement.
3)Authorize CEC to adopt guidelines for implementing the
Program's block grant or incentive program.
4)Authorize CEC to advance Program funds to a public entity, a
recipient that will make advance payments to a public entity
that is a subrecipient of the funds, or an administrator of a
block grant program.
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5)Delete the requirement that CEC develop and adopt a draft and
final Program investment plan every two years; and, instead
require CEC to submit a draft and final update of the Program
investment plan each year.
6)Delete the advisory group requirements referenced in 2) of "AS
PASSED BY THE ASSEMBLY" below.
EXISTING LAW :
1)Creates the Program administered by CEC for the purpose of
providing funding to various entities to develop and deploy
innovative technologies that transform California's fuel and
vehicle types to help attain the state's climate change
policy.
2)Requires that a project funded by CEC be approved at a noticed
public hearing of the commission and shall be consistent with
the priorities established by the Program's investment plan.
3)Requires CEC to give preference to those projects that, among
other things, provide nonstate matching funds.
4)Provides that only certain projects are eligible for funding
under the Program, including, among others, alternative and
renewable fuel projects to develop and improve alternative and
renewable low-carbon fuels; projects involving alternative and
renewable fuel infrastructure, fueling stations, and
equipment; block grants administered by not-for-profit
technology entities for multiple projects, education and
program promotion within California, and development of
alternative and renewable fuel and vehicle technology centers;
and projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative
fuel usage and storage, or emission reductions.
5)Requires CEC to annually develop and adopt an investment plan
to determine priorities and opportunities for the Program.
Requires CEC to submit a draft and final investment plan each
year to the Joint Legislative Budget Committee and all
relevant policy and fiscal committees of the Legislature.
6)Establishes the AB 118 Fund, which contributes substantially
to the Program. The AB 118 fund receives over $100 million
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per year from temporary surcharges on vehicle and vessel fees.
Collection of these fees is currently authorized until 2016.
This fund also receives $10 million annually from the Public
Interest Energy Research (PIER) Program Fund.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required that CEC develop and adopt every two years an
investment plan to determine priorities and opportunities for
the Program. Requires CEC to submit a draft and final
investment plan every two years to the Joint Legislative
Budget Committee and all relevant policy and fiscal committees
of the Legislature.
2)Required the advisory body to provide information that will
assist CEC in its development of each investment plan,
including: 1) all relevant technology advancements,
assessments of government and private investment patterns; 2)
environmental assessments of fuels and vehicles in relation to
existing fleets; and, 3) barriers to developing new fuels and
vehicles.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible effect on CEC.
COMMENTS : Assembly Bill 118 (Nuņez), Chapter 750, Statutes of
2007, created the Program. The statute, subsequently amended by
AB 109 (Nuņez), Chapter 313, Statutes of 2008, authorizes CEC to
develop and deploy alternative and renewable fuels and advanced
transportation technologies to help meet the state's goals for
reducing greenhouse gas emissions and petroleum dependence in
the transportation sector.
CEC has an annual program budget of approximately $100 million
to support projects such as the ones referenced in 3) in
"EXISTING LAW" above.
The purpose of this bill is to make the Program more efficient,
especially as CEC is faced with staffing shortages. The bill
accomplishes this goal in four ways. First, the bill requires
CEC to update the Program's investment plan rather than create a
new plan each year. According to the author, the investment
plan has become analogous to painting the Golden Gate Bridge-it
is continually being worked on. Second, the bill allows
projects under the Program to get started more quickly by
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allowing a proposed recipient to count its preapproval start-up
costs toward the nonstate matching funds. Third, the bill
allows the CEC to develop guidelines to have public entities and
nonprofits to administer block grant funds so that projects that
benefit the environment and the create jobs can be funded more
expeditiously. Fourth, the bill allows CEC to more quickly
approve smaller grants and to make amendments to certain grants
with the approval of the CEC director and without a public
hearing.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN: 0002650