BILL ANALYSIS Ó
SB 39
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SENATE THIRD READING
SB 39 (De León)
As Amended August 5, 2013
2/3 vote.
SENATE VOTE :Vote not relevant
NATURAL RESOURCES 8-0 APPROPRIATIONS 16-0
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|Ayes:|Chesbro, Bigelow, Garcia, |Ayes:|Gatto, Harkey, Bigelow, |
| |Muratsuchi, Patterson, | |Bocanegra, Bradford, Ian |
| |Skinner, Stone, Williams | |Calderon, Campos, Eggman, |
| | | |Gomez, Hall, Holden, |
| | | |Linder, Pan, Quirk, |
| | | |Wagner, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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 : According to the Assembly Appropriations
Committee, this bill has a General Fund impact of $44.4 million
(in outstanding unrestricted loans) 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 General
Fund.
COMMENTS : According to the CEC, the ECAA program (established
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in1979) has made loans to more than 790 entities totaling more
than $306 million, with about 63% of the total loan amount going
to local governments, 17% to K-12 public schools, 10% to public
colleges, 8% to hospitals and public care facilities, and 2% 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.
Earlier this year, a budget trailer bill, SB 73 (Budget and
Fiscal Review Committee), 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.
Pursuant to SB 1268 (Pavley), Chapter 615, Statutes of 2012, 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."
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
SB 39
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FN: 0002202