BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
234 (Huffman)
Hearing Date: 08/27/2009 Amended: 07/16/2009
Consultant: Brendan McCarthy Policy Vote: EU&C 11-0
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BILL SUMMARY: This bill authorizes the Energy Commission to make
grants and enter into contracts to award federal energy
efficiency and conservation funds.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Energy Commission Minor and absorbable Federal
implementation
Lost loan repayments Unknown cost pressure Federal
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STAFF COMMENTS: Suspense file.
Under the federal American Recovery and Reinvestment Act of 2009
(ARRA), the California Energy Commission expects the state to
receive $226 million for State Energy Programs and $56 million
for energy efficiency and conservation grants to local
governments. Federal law (and current state law) allows the
Energy Commission to use federal stimulus funds for grants or
loans, with specified requirements on the use of repayment
proceeds from any loans made with federal funds.
This bill makes numerous findings and declarations relating to
the use of federal stimulus funds for energy-related projects.
The bill authorizes the Energy Commission to make grants (but
not loans) and enter into contracts to perform functions
necessary to promptly award energy efficiency and conservation
funds received from the federal government.
The Energy Commission indicates that the costs to implement the
measure are minor and absorbable. Under current law, the Energy
Commission is authorized to issue grants and loans with federal
stimulus funds. By deleting the authority to issue loans, the
bill will create unknown cost pressures on federal stimulus
funds by eliminating loan repayments that could be used in the
future to fund additional projects.
This bill is identical to AB 262 (Bass) which will also be heard
by this committee. In addition, one of the recently adopted
budget trailer bills contains language that is substantially
similar, but not identical, to this bill.