BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 39| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 39 Author: Skinner (D) Amended: 6/24/13 in Senate Vote: 27 SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 9-2, 7/2/13 AYES: Padilla, Cannella, Corbett, De León, DeSaulnier, Hill, Pavley, Wolk, Wright NOES: Fuller, Knight SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/30/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines ASSEMBLY FLOOR : Not relevant SUBJECT : Energy: conservation: financial assistance SOURCE : Author DIGEST : This bill extends the sunset date of the Energy Conservation Assistance Account (ECAA) program to January 1, 2020. ANALYSIS : Existing law establishes the 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. CONTINUED AB 39 Page 2 This bill extends the sunset date of the ECAA program from January 18, 2018, to January 1, 2020. Background The ECAA program was established more than 30 years ago by CEC to reduce statewide energy consumption through energy efficiency programs. The program makes low interest loans to cover up to 100% of a project with a maximum repayment term of 15 years. A loan repayment amount cannot exceed the estimated energy savings from a funded program. Funding for ECAA has come from the General Fund (GF), bonds, and the American Recovery and Reinvestment Act of 2009 (ARRA). The 2013-14 Budget Act recently appropriated an additional $28 million for 2013-14 to the ECAA program as a result of Proposition 39 revenues. The ECAA program sunsets on January 1, 2018. At that time, all funds in the ECAA Account that were not precedes of bonds or ARRA (unrestricted), revert to the GF. Bond funds, once all bond obligations have been satisfied, also revert to the GF. Remaining ARRA funds revert to the Federal Trust Fund. Prior legislation . SB 1268 (Pavley, Chapter 615, Statutes of 2012) extended the sunset of the ECAA program from January 1, 2013 to January 1, 2018. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Annual costs in the low millions of dollars to ECAA (special/GF) for the administration of the program for two years. Delayed revision of at least $70 million of non-federal and non-bond monies in ECAA to the GF. SUPPORT : (Verified 8/30/13) TRANE JG:k 8/31/13 Senate Floor Analyses AB 39 Page 3 SUPPORT/OPPOSITION: SEE ABOVE **** END ****