BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 46 - Blakeslee Hearing Date:
July 7, 2009 A
As Amended: June 22, 2009 FISCAL B
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DESCRIPTION
Current law establishes the Energy Conservation Assistance
Account (ECAA) to provide loans to schools, hospitals, and local
governments for financing energy conservation projects. This
program sunsets on January 1, 2011.
This bill extends that sunset until January 1, 2020.
Current law establishes the Local Jurisdiction Energy Assistance
Account (LJEA) to loan specified monies to local governments for
energy conservation projects, small power production systems,
and to improve the efficiency of local transportation systems.
This program sunsets on January 1, 2011.
This bill extends that sunset until January 1, 2020.
Current law establishes the State Assistance Fund for
Enterprise, Business, and Industrial Development Corporation
(SAFE-BIDCO), which administers several state and federal loan
and loan guarantee programs for small businesses. The board of
SAFE-BIDCO is comprised of six members of the public, a member
of the Governor's cabinet, and a member of the California Energy
Commission (CEC).
This bill deletes the member of the CEC from the SAFE-BIDCO
board.
BACKGROUND
The ECAA is a $26 million low interest program for local
governments, colleges, schools, and hospitals to finance energy
efficiency projects. The projects must have a payback of not
more than 10 years. The loans, which will finance up to 100% of
the cost of the project, are repaid from the energy cost
savings. The ECAA program is continuously appropriated.
The LJEA was funded from penalties resulting from federal
lawsuits against oil companies for overcharging. Since it's
inception in the 1980's the LJEA has funded over 600 projects.
It is a much smaller program than the ECAA.
SAFE-BIDCO administers seven state and federal small-business
loan program, one of which is for energy efficiency.
COMMENTS
The LJEA is a relatively small account which ideally should be
folded into the ECAA. However, the CEC believes that if the
program is discontinued, the funds in the LJEA, totalling
several million dollars, must be returned to the federal
government.
The CEC does not oppose the bill.
ASSEMBLY VOTES
Assembly Floor (76-0)
Assembly Appropriations Committee (17-0)
Assembly Utilities and Commerce Committee
(14-0)
POSITIONS
Sponsor:
Author
Support:
California Hospital Association
City of San Jose
South Coast Air Quality Management District
Oppose:
None on file
Randy Chinn
AB 46 Analysis
Hearing Date: July 7, 2009