BILL ANALYSIS
AB 1106
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1106 (Fuentes)
As Amended August 17, 2010
2/3 vote. Urgency
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|ASSEMBLY: | |(June 1, 2009) |SENATE: |29-3 |(August 20, |
| | | | | |2010) |
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(vote not relevant)
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|COMMITTEE VOTE: |4-0 |(August 25, 2010) |RECOMMENDATION: |concur |
| | | | | |
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(Economic Development)
Original Committee Reference: U. & C.
SUMMARY : Authorizes the California Energy Resources Conservation
and Development Commission (CEC) to contract with small business
financial development corporations (FDCs) to expend Alternative and
Renewable Fuels and Vehicle Technology Program (ARF Program) funds.
Specifically, this bill :
1)Authorizes CEC to contract with FDCs, which have been designated
by the Business, Transportation and Housing Agency (BTH), to
expend ARF Program funds through the Small Business Loan
Guarantee Program, as specified.
2)Removes the sunset on the CEC's authority to contract with the
State Treasurer (Treasurer) to expend ARF Program moneys through
programs administered by the Treasurer.
3)Makes technical and nonsubstantive related changes INCLUDING
CHAPTERING CONFLICTS WITH SB 1340 (Kehoe) relating to electrical
vehicle charging infrastructure.
4)Contains an urgency clause allowing this bill to take effect
immediately upon enactment.
EXISTING LAW :
1)Establishes the ARF Program, administered by the CEC, for the
AB 1106
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purpose of providing competitive grants, revolving loans, loan
guarantees, loans, or other appropriate funding measures to
specified public and private entities for the purpose of
developing and deploying innovative technologies that result in
the transformation of California fuel and vehicle types to help
attain the state's climate change policies.
2)Provides, upon appropriation by the Legislature, approximately
$120 million annually through 2015 for the ARF Program. Program
moneys come from additional fees on vehicle registrations,
special identification plates for various vehicles, and vessel
registrations, plus $10 million annually from the Public Interest
Research, Development, and Demonstration Fund, which is derived
from a portion of electric utility rates.
3)Authorizes the CEC to contract with the Treasurer's Office until
January 1, 2012, to expend program funds.
4)Provides that moneys allocated through the ARF Program shall be
awarded based on a set of priorities put forward in a commission
approved investment plan.
5)Establishes a small business loan guarantee program, administered
through BTH for the purpose of assisting small businesses in
obtaining long-term loans or lines of credit from conventional
financial institutions. Under this program, the 11 state
approved FDCs are to serve as financial intermediaries between
the state, the small business, and the financial institution.
AS PASSED BY THE ASSEMBLY , this bill required the California Public
Utilities Commission to develop a feed-in tariff for eligible
renewable electric generation that is less than 20 megawatt in
size.
FISCAL EFFECT : According to the Senate Appropriations' Committee,
implementation of this measure would have $100,000 in ongoing
administrative costs to the CEC and BTH. Unknown amount of
administration fees to the FDCs to deliver the program.
COMMENT : FDCs are nonprofit corporations that have been designated
by BTH to market its small business capital program, coordinate the
packaging of the loan and loan guarantee applications between the
small business and financial institution, issue the loan
guarantees, and ensure that private lenders have followed required
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procedures before requesting payment on defaulted loans. A total
of 11 FDCs operate throughout the state.
This bill permits the CEC to utilize FDCs in the implementation of
the ARF Program. By authorizing the use of FDCs to implement an
additional state business capital program, the state gains a strong
regionally-based community development partner that has a
demonstrated ability to work with small businesses and private
lending institutions.
The language that appeared in the measure as it passed the Assembly
has been deleted and these new provisions were added in the Senate
Appropriations Committee. Subsequent policy and fiscal committee
hearings were held on the new language IN THE SENATE.
THE ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE
ECONOMIC ALSO HEARD THE MEASURE PURSUANT TO ASSEMBLY RULE 77.2 AND
VOTED TO CONCUR IN THE SENATE AMENDMENTS.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0006762