BILL ANALYSIS Ó
SB 39
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 39 (De León) - As Amended: August 5, 2013
Policy Committee: Natural
ResourcesVote:8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the sunset for the Energy Conservation
Assistance Act (ECAA) administered by the California Energy
Commission (CEC) from 2018 to 2022.
FISCAL EFFECT
1)Delayed reversion of $44 million to $70 million of non-federal
and non-bond monies in the ECAA to the GF over 17 years.
2)Unknown annual costs in the several million dollar range to
the ECAA to administer the program four additional years.
All unexpended funds in the State Energy Conservation Assistance
Account revert to the GF on January 1, 2018 with exceptions for
bond-obligated funds and federal funds.
The current breakdown of these loan monies is shown below:
a) The American Recovery and Reinvestment Act restricted
loans: 30 loans, $17.4 million outstanding loan balance
($15.9 million principal, $1.5 million interest, repayment
term until June, 2027)
b) Bond restricted loans: 101 loans, $88.4 million
outstanding loan balance ($76.3 million principal, $12.1
million interest, repayment term until December, 2030)
c) Unrestricted loans: 32 loans, $44.4 million outstanding
loan balance ($39.4 million principal, $5 million interest,
repayment term until June, 2030).
Based on the above, this bill has a GF impact of $44.4 million
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(the outstanding unrestricted loans listed above) over 17 years,
or an annual average of about $2.6 million, as a result of
delayed reversion of funds remaining in the Energy Conservation
Assistance Account.
Additionally, the 2013-14 Budget Act appropriated $28 million to
a new Education Subaccount within the Energy Conservation
Assistance Account. The Energy Commission will make Proposition
39-related low- and zero-interest loans to schools and colleges
from this Education Subaccount. It is not clear whether any
funds remaining within the Education Subaccount on the sunset
date would revert to the Job Creation Fund or to the GF.
COMMENTS
1)Rationale. Earlier this year a budget trailer bill, SB 73
(Chapter 29, statutes of 2013), 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 for K-12 local educational agencies (LEAs)
and California community college districts (CCCs).
Of the $28 million appropriated in SB 73, 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.
According to the author, since SB 73 also extended the terms
for ECAA loans from 15 to 20 years, it is important to extend
the sunset of the program to ensure loan proceeds continue to
be available for future ECAA eligible projects.
This bill was originally a Prop 39 funding bill, but was
amended in the Assembly after the Budget was enacted.
2)Background. Funding for ECAA loans has been from a variety of
sources over the years, including the GF, the federal
Petroleum Violation Escrow Account, and tax-exempt revenue
bonds.
Funding levels have generally been adequate to meet demand for
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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.
3)Similar Legislation. AB 39 (Skinner) is currently in the
Senate Appropriations Committee on suspense. This bill
extends the sunset date for the ECAA from 2018 to 2020.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081