BILL ANALYSIS Ó
AB 1131
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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
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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