BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1131
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1131 (Skinner) - As Amended:  April 22, 2013

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:   
          No     Reimbursable:              

           SUMMARY  

          This bill extends and expands the Clean Energy Upgrade Program  
          (CEUP) administered by the California Alternative Energy and  
          Advanced Transportation Financing Authority (Authority), which  
          offers assistance to financial institutions for privately-issued  
          loans for real property projects, including energy and water  
          efficiency improvements and renewable distributed generation.   
          Specifically, this bill: 

          1)Extends the RRTF appropriation for two years, until January 1,  
            2017.

          2)Repeals the cap on loans currently at 10% of property value.

          3)Expands eligible residential properties to include residential  
            projects with four units or fewer and mobilehomes.

           FISCAL EFFECT
           
          This bill redirects the remainder of the funds in the Renewable  
          Resource Trust Fund appropriated for the CEUP and other  
          programs, which that under current law would revert to the New  
          Solar Homes Partnership, also administered by the CEC. About $25  
          million remains in the fund.

          This bill would likely make Renewable Resource Trust Funds  
          unavailable for the New Solar Homes Partnership, by extending  
          the CEUP program, as the solar partnership would otherwise  
          receive any remaining CEUP program funds.
            
           COMMENTS  








                                                                  AB 1131
                                                                  Page  2


           1)Rationale.    The Authority established a program to provide  
            financial assistance to participating financial institutions  
            making loans to property owners for energy efficiency and  
            renewable energy improvements to their homes.  

            The program is set to expire on January 1, 2015.  Extending  
            the program may encourage additional financial institutions to  
            participate in the program, thereby providing more loans to  
            homeowners and furthering the state's energy efficiency goals.  
             This bill extends the program expiration date to January 1,  
            2017.

            Currently, loans cannot exceed 10 % of the value of the  
            property.  In California, for people who bought their homes  
            before 1975, the value of their home is the 1975 value plus a  
            small annual increase.  Given that housing prices have risen  
            dramatically in the last couple of decades, the requirement  
            for loans to be less than 10% of the property value excludes  
            many homeowners who would otherwise be eligible for energy  
            retrofit loans.  This bill removes the requirement that loan  
            amounts be less than 10% of the property value.
           
            2)Background.   The Authority consists of five members:  the  
            Director of Finance, the Chairman of the CEC, the President of  
            the Public Utilities Commission, the State Controller, and the  
            State Treasurer.  Its current mission is to provide financing  
            for facilities that use alternative energy sources and  
            technologies, and develop and commercialize advanced  
            transportation technologies that conserve energy, reduce air  
            pollution, and promote economic development and jobs.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081