BILL ANALYSIS Ó 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 39 - Skinner Hearing Date:
July 2, 2013 A
As Amended: June 24, 2013 FISCAL B
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DESCRIPTION
Current law establishes the Energy Conservation Assistance
Account (ECAA) program for administration by the California
Energy Commission (CEC) to provide grants and loans low or no
interest for local governments, public schools, hospitals,
government buildings and non-profit organizations to finance
energy efficiency projects.
This bill extends the sunset date of the ECAA program to January
1, 2020.
BACKGROUND
Energy Conservation Assistance Account - This loan program was
established more than 30 years ago by the CEC and is one of the
oldest of California's many programs designed to reduce
statewide energy consumption through energy efficiency measures.
The program makes low interest loans to cover up to 100 percent
of a project with a maximum repayment term of 15 years. A loan
repayment amount cannot exceed the estimated energy savings from
a funded project.
Funding for ECAA loans has come from a variety of sources over
the years, including the General Fund and tax-exempt revenue
bonds. In 2009, ARRA provided $25 million to CEC for ECAA loans
and SB 679 (Pavley, 2011) appropriated an additional $25 million
to the program. In a trailer bill to the Budget Act of 2013, an
additional $28 million was allocated to the CEC from Proposition
39 revenues to fund no interest and low interest loans for K-12
schools and community colleges.
The CEC will accept loan applications on a first-come,
first-served basis for projects with proven energy savings for
public facilities including schools, colleges, and city and
county buildings. Residential, commercial, and/or private
non-profit institutions are not eligible for these funds.
Projects with proven energy and/or demand cost savings are
eligible and include lighting system upgrades, streetlights and
LED traffic signals, energy management systems and equipment
controls, building insulation, energy generation including
renewable and combined heat and power projects, HVAC, and water
and waste water treatment equipment. The energy efficiency
projects must be technically and economically feasible.
Loans must be repaid from energy cost savings or other legally
available funds within a maximum term of 20 years, including
principal and interest, if any.
COMMENTS
The ECAA sunset was just extended from 2013 to 2018 last year.
The 2012 legislation extending the program authorization
originally proposed 2028 but was scaled back by the Assembly
Appropriations Committee. Additional funding was provided to
the ECAA program from Proposition 39 revenues in the 2013-14
fiscal year as a result of SB 73, a trailer bill to the 2013
Budget Act. The author wants to ensure that the ECAA program is
operative through the full cycle of Proposition 39 revenues (the
2017-18 fiscal year) in the event that additional loan funds can
be appropriated.
Related Legislation . SB 1268 (Pavley, 2012), extended the
sunset of the ECAA program from January 1, 2013 to January 1,
2018. Status: Chapter 615, Statutes of 2012.
PRIOR VOTES*
Assembly Floor (76-2)
Assembly Appropriations Committee (12-0)
Assembly Utilities and Commerce Committee
(15-0)
Assembly Natural Resources Committee
(9-0)
*Not relevant
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Kellie Smith
AB 39 Analysis
Hearing Date: July 2, 2013