BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1207|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: SB 1207
Author: Hueso (D)
Introduced:2/18/16
Vote: 27
SENATE ENERGY, U. & C. COMMITTEE: 9-0, 3/29/16
AYES: Hueso, Morrell, Cannella, Gaines, Hill, Lara, Leyva,
McGuire, Wolk
NO VOTE RECORDED: Hertzberg, Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Energy: conservation: financial assistance
SOURCE: Author
DIGEST: This bill extends by ten years the sunset on Energy
Conservation Assistance Account (ECAA) program.
ANALYSIS: Existing law establishes the ECAA loan program to
fund energy efficiency improvements at facilities used by local
governments. Sunsets the program as of January 1, 2018, and
requires that unexpended funds in ECAA as of January 1, 2018,
and thereafter revert to the General Fund. (Public Resources
Code § 25410 et seq)
This bill extends the sunset date on the ECAA program from
January 1, 2018, to January 1, 2028.
Background
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ECAA program loans to local governments for energy efficiency.
The ECAA program, which sunsets in 2018, was established more
than 30 years ago by the Energy Conservation Assistance Act of
1979. It is one of the oldest of California's many programs
designed to reduce statewide energy consumption through energy
efficiency measures. The program makes low-interest loans to
cover up to 100 percent of a project with a maximum repayment
term of 15 years. A loan repayment amount cannot exceed the
estimated energy savings from a funded project.
A variety of sources have funded ECAA over the years, including
the General Fund and tax-exempt revenue bonds. In 2009, the
American Recovery and Reinvestment Act (ARRA) provided $25
million to California Energy Commission (CEC) for ECAA loans to
supplement about $34 million in ARRA funds that the CEC awarded
to 279 small cities and counties for energy efficiency projects.
SB 679 (Pavley, Chapter 597, Statutes of 2011) appropriated an
additional $25 million to CEC for ECAA loans that originated as
ratepayer funds deposited into the Renewable Resource Trust Fund
(RRTF). The $25 million was part of $50 million transferred by
SB 77 (Pavley, Chapter 15, Statutes of 2010) from the RRTF to
the California Alternative Energy and Advanced Transportation
Financing Authority within the State Treasurer's Office for a
Property Assessed Clean Energy (PACE) loan program that has
since been put on hold for residential energy efficiency loans.
More recently, Proposition 39 - the Clean Energy Jobs Act
program - has provided funding to the ECAA program for
zero-percent-interest loans for public schools.
According to the CEC, since 1979 the CEC has lent more than $383
million to various local agencies throughout the state to fund
energy efficiency improvements. Those loans have gone to more
than 840 recipients, as follows, based on total loan amounts:
about 58 percent to local governments, 23 percent to K-12 public
schools, 10 percent to public colleges, 7 percent to public care
facilities and hospitals, and 2 percent to special districts.
ECAA has received five legislative extensions since its
enactment in 1979. The most recent sunset extension was SB 1268
(Pavley, Chapter 615, Statutes of 2012).
The CEC reports that, despite this long record of lending, the
ECAA program has never experienced a default on loan repayment.
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Prior/Related Legislation
SB 1268 (Pavley, Chapter 615, Statutes of 2012) extended the
ECAA program sunset from January 2013 to January 2018.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, the extension
of the sunset to 2028 will result in the following fiscal
impacts:
Up to $2.8 million will flow back to ECAA, rather than to the
General Fund absent the extension.
The continuation of approximately $1.7 million annually (ECAA)
for administration costs, plus bond administrative costs of
approximately $75,000 annually.
SUPPORT: (Verified5/27/16)
School Energy Coalition
OPPOSITION: (Verified5/27/16)
None received
ARGUMENTS IN SUPPORT: According to the author, this bill
will extend ECAA until January 1, 2028, thereby ensuring that
these beneficial programs can continue to help California meet
its energy usage goals and save taxpayer funds.
Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
5/28/16 17:15:12
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