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.
CONTINUED
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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