BILL ANALYSIS Ó
SB 39
Page 1
Date of Hearing: August 12, 2013
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 39 (De León) - As Amended: August 5, 2013
SENATE VOTE : Not relevant
SUBJECT : Energy: conservation: financial assistance
SUMMARY : Extends the sunset for the Energy Conservation
Assistance Act (ECAA) from 2018 to 2022.
EXISTING LAW establishes ECAA, which is administered by the
California Energy Commission (CEC), to provide energy efficiency
loans to schools, hospitals, public care institutions, and local
governments.
FISCAL EFFECT : Unknown
COMMENTS :
Background on ECAA : According to the CEC, the ECAA program
(established in1979) has made loans to more than 790 entities
totaling more than $306 million, with about 63 percent of the
total loan amount going to local governments, 17 percent to K-12
public schools, 10 percent to public colleges, 8 percent to
hospitals and public care facilities, and 2 percent to special
districts. Since 2000, the program has provided $130 million in
loan funds for lighting, LED traffic signals, HVAC systems,
renewables, self-generation, and other miscellaneous
improvements. Between March 1, 2000 and June 30, 2013, CEC
estimates that the loans resulted in over $29 million in annual
energy cost savings; nearly 300,000 kilowatt hours (kWh) in
annual electric savings; and over 100,000 tons in annual CO2
reductions.
Funding for ECAA loans has been from a variety of sources over
the years, including the General Fund, the federal Petroleum
Violation Escrow Account, and tax-exempt revenue bonds. Funding
levels have generally been adequate to meet demand for loans.
More recently, the American Recovery and Reinvestment Act of
2009 (ARRA) provided $25 million for ECAA loans and about $34
million for CEC to award as grants to 279 small cities and
counties for energy efficiency projects.
SB 39
Page 2
Earlier this year, a budget trailer bill, SB 73 (Chapter 29),
appropriated $28 million in Proposition 39 (The Clean Energy and
Energy Efficiency Funding Initiative) revenues to the ECAA
program. In 2013-14, the funds are available to fund eligible
projects for K-12 local educational agencies (LEAs) and
California community college districts (CCCs). Of the $28
million appropriated in this measure, the 2013-14 Budget
identifies $25 million (89%) for K-12 LEAs and $3 million (11%)
for CCCs. In 2014-15 through 2017-18, the amount available
shall be determined through the annual budget process.
This bill : Pursuant to Chapter 615, Statutes of 2012 (SB 1268,
Pavley), the ECAA program is currently scheduled to sunset in
2018. According to the author, SB 73 "[extended] the terms for
loans from 15 years to 20 years. As such, it [is] important to
extend the sunset on the program to ensure these funds continue
to be available for future ECAA eligible projects."
REGISTERED SUPPORT / OPPOSITION :
Support
Coalition for Adequate School Housing
School Energy Coalition
Opposition
None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092