BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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.

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                                                                      AB 39
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          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 








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                           SUPPORT/OPPOSITION:  SEE ABOVE

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