BILL ANALYSIS Ó
SB 1271
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SENATE THIRD READING
SB 1271 (Leno)
As Introduced February 21, 2014
Majority vote
SENATE VOTE :33-0
UTILITIES & COMMERCE 14-0
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|Ayes:|Patterson, Bonilla, | | |
| |Buchanan, Chávez, Dahle, | | |
| |Fong, Beth Gaines, | | |
| |Garcia, Roger Hernández, | | |
| |Jones, Mullin, Quirk, | | |
| |Rendon, Skinner | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes the Legislature to appoint two additional
members to the California Alternative Energy and Advanced
Transportation Financing Authority (CAEATFA). Specifically,
this bill :
1)Increases the number of CAEATFA members from five to seven.
2)Requires one additional member to be appointed by the Senate
Rules Committee, with the other appointed by the Speaker of
the Assembly.
FISCAL EFFECT : None
COMMENTS :
1)Author's statement: According to the author, "CAEATFA is
responsible for incentivizing projects to develop alternative
sources of energy. CAEATFA has had a successful track record
in evaluating and granting tax treatments and funding which
have been extremely important to numerous companies. Some of
these companies focus on bringing manufacturing which creates
jobs to the state, like solar panel manufacturing plants.
Other programs administered by CAEATFA allow homeowners and
businesses to access loans under the Property Assessed Clean
Energy (PACE) program to finance energy efficiency and
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renewable energy components. Since its establishment, and
especially following the implementation of SB 71 (Padilla),
Chapter 10, Statutes of 2009, and SB 1128 (Padilla), Chapter
677, Statutes of 2012, the authority of CAEATFA and its
funding ability have dramatically expanded. The Authority now
controls expenditures of over $125 million annually.
"Like the California Film Commission, California Coastal
Commission, California Transportation Commission, and High
Speed Rail Authority, CAEATFA is structured to promote a
certain interest throughout the state. However, unlike the
aforementioned commissions, CAEATFA's board does not contain
legislative appointees to aid in the authority's decisions.
"Due to CAEATFA's additional responsibilities, it is desirable
and prudent that the Legislature be involved in the decision
processes to ensure funding is properly allocated. By adding
legislative appointees, the Legislature will have the ability
to maintain oversight to ensure the expanded authority of
CAEATFA is fully and correctly executed. The programs
administered by CAEATFA are the nuts and bolts implementation
of the State's greenhouse gas reduction and clean energy
goals. For this reason as well, legislative appointments
created by SB 1271 would bring an important perspective to the
board."
2)The California Alternative Energy and Advanced Transportation
Financing Authority. CAEATFA was created by the Legislature in
1980. It provides financing through conduit or revenue bonds,
loan guarantees, and loan loss reserves. It also provides a
sales and use tax exemption to develop and commercialize
advanced transportation and alternative energy technologies.
The programs administered by CAEATFA help implement the
state's greenhouse gas reduction and clean energy goals. The
Governor's proposed budget of $27.5 million for CAEATFA in
2014-15 is funded primarily through transfers from the
California Energy Commission. The five board members of
CAEATFA include the State Treasurer, State Controller, State
Director of Finance, Chairperson of the Energy Commission, and
the President of the Public Utilities Commission (PUC).
3)CAEATFA as PUC program administrator. In 2013 the PUC issued
a decision on a pilot program to examine energy efficiency
financing. In Decision 13-09-044 the PUC approved seven pilot
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projects for single family, master-metered multi-family, small
business, and "any size" business sectors. This decision also
designated CAEATFA as the statewide administrator for the
pilot program, pending CAEATFA receiving legislative budget
authority. Subsequent to this decision, CAEATFA requested
budget authority for staffing and contracting to administer
the program.
Typically, authority to administer a program is sought through
either legislation or a Governor's budget proposal. Because
the PUC's decision did not occur in a manner timely for either
legislation or a budget proposal, the decision on whether
CAEATFA should administer this program and whether the budget
authorization was reasonable, did not occur within the
timeframe anticipated by the PUC's decision.
Had legislative representation been on the CAEATFA Board, the
representatives could have helped provided guidance to CAEATFA
on the timing and method of requesting the budget
authorization needed for this request. If, following the
pilot program, CAEATFA seeks to become a permanent
administrator of this program or expand its activities into
other areas, it would be valuable to include legislative
participation in CAEATFA.
4)Value added. As other entities contain legislative appointees
(such as the California (CA) Film Commission, CA Coastal
Commission, CA Transportation Commission, and High Speed Rail
Authority), it is sensible to consider CAEATFA similarly.
5)Support. Supporters contend that adding legislative
appointments add an important perspective currently absent
from the authority and ensure that the Legislature's vision
and intent is adequately represented regarding greenhouse gas
reductions.
There is no opposition on file.
Analysis Prepared by : Brandon Gaytan / U. & C. / (916)
319-2083 FN: 0004135
SB 1271
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