BILL ANALYSIS
AB 2132
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Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2132 (Carter) - As Amended: April 27, 2010
Policy Committee: Utilities and
Commerce Vote: 13-0
Natural Resources 5-0
Urgency: Yes State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill authorizes grants to pay for energy efficiency
improvements in buildings built before January 1, 1978.
Specifically, this bill:
1)Authorizes Emerging Renewable Resources Account grants from
the Renewable Resources Trust Fund (RRTF) to pay for energy
efficiency improvements in buildings built before January 1,
1978, including multi-family housing.
2)Sunsets the provisions of the bill, effective January 1, 2013,
at which point Renewables Program money will pay for energy
efficiency improvements made to new buildings.
FISCAL EFFECT
1)This bill authorizes grants from the approximately $130
million balance in the Emerging Renewable Resources Account of
the RRTF for uses not presently permitted. According to the
Governor's 2010-11 Budget, there is a projected balance of
about $170 million in the RRTF, which presumes a repayment of
a loan to the GF of $35 million. However, legislation passed
earlier this year-SB8X-34 (Padilla) and SB 77 (Pavley)
together will divert $60 million from the RRTF.
2)One-time costs in 2010-11 to the Energy Commission of
approximately $150,000, equivalent to two positions, to
develop the new program (RRTF).
3)Ongoing costs of approximately $225,000, equivalent to three
AB 2132
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positions, to the Energy Commission to administer grants
(RRTF).
COMMENTS
1)Rationale . The author intends to make funding available for
energy efficiency improvements in existing buildings built
before 1978, which, the author notes, are among the least
energy efficient and for which financing can be challenging.
The author contends it appropriate and in keeping with current
legislative intent to make RRTF funding available to older
buildings since so little new construction is occurring and
money is accumulating in the RRTF.
2)Background . The RRTF was established in 1997 to promote
development and expansion of in-state renewable electricity
generation. RRTF revenues come from surcharges on ratepayers
of the state's three main electric utilities-Pacific Gas and
Electric Company, San Diego Gas & Electric, and Southern
California Edison. This revenue support the Energy
Commission's renewable energy programs-the Existing Renewables
Program and the Emerging Renewables Program. Existing law
directs 79% of RRTF funds to the Emerging Renewables Program,
which is the program affected by this bill.
The Emerging Renewables Program is designed to encourage
renewable technology market growth by providing rebates to
purchasers of on-site renewable energy generation. The
program has focused mainly on solar panel installation in new
residential construction. However, the program has been
undersubscribed in recent years because of a lack of new
construction projects. As a result, the Emerging Renewables
Program currently has an uncommitted balance of about $130
million.
3)Related Legislation.
a) AB 758 (Skinner), Chapter 470, Statutes of 2009 ,
requires the CEC to develop and implement a comprehensive
program to achieve greater energy savings in existing
residential and nonresidential building stock, including
energy assessments, cost-effective energy efficiency
improvements, financing options, public outreach, and
education efforts.
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b) SBX8-34 (Padilla), Chapter 9, Statutes of 2010 ,
authorizes developers of about 15 proposed renewable energy
projects to pay an in lieu fee to fully mitigate the
environmental effects of the projects and loans $10 million
from the RRTF as seed money.
c) SB 77 (Pavley), Chapter 15, Statutes of 2010 ,
establishes a state-financed reserve for the Property
Assessed Clean Energy (PACE) program using proceeds from
the RRTF.
d) SBX8-26 (Pavley, 2010) sought to establish a
state-financed reserve for the Property Assessed Clean
Energy (PACE) program by transferring funds from the
Renewable Resource Trust Fund. The bill passed this
committee on a vote of 11-3 but failed passage on the
floor.
4)There is neither support nor opposition registered to this
bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081