BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2614 (J. Perez)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant:  Brendan McCarthy   Policy Vote: EU&C 10-0














































          AB 2614 (J. Perez), Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2614 directs the Energy Commission to develop  
          programs to implement a proposed federal law that will provide  
          funding to the states for energy efficiency projects. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Energy Commission      $5,750     $1,500      $1,500    Federal
             implementation                                       

          Public Utilities Commission       $100        $100       
          $100Federal
             coordination

          Dept. of Community Services       $200        $200       
          $200Federal
             and Development coordination

          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.

          The United States Congress is considering a bill, the Home Star  
          Energy Retrofit Act of 2010, to provide funds to the states for  
          energy efficiency rebates and loans. The most recent version of  
          the federal act includes about $6 billion in total funding and  
          allows up to 3.6 percent of the grant amount provided to a state  
          to be used for administrative costs. States that receive funding  
          under the federal act would be required to submit plans to the  
          Department of Energy to implement quality assurance programs to  
          ensure that funds were spent in keeping with federal  
          requirements.

          AB 2614 requires the Energy Commission, upon enactment of the  
          federal act, to develop programs that are required by and  
          complement the federal act. The Energy Commission is required to  
          develop a quality assurance program, ensure that a qualified  
          pool of professionals is available to staff the quality  
          assurance program, ensure that the required quality assurance  
          work is performed, and develop financing options for the federal  
          funds.







          AB 2614 (J. Perez), Page 2



          In cooperation with the Public Utilities Commission and the  
          Department of Community Services and Development, the Energy  
          Commission is required to streamline procedures for low income  
          homeowners to receive funding for energy efficiency retrofits  
          and implement outreach programs to homeowners. In coordination  
          with the Green Collar Jobs Council, the Energy Commission is  
          required to ensure that the Council's policies are complementary  
          of the federal program.

          The bill authorizes the Energy Commission to adopt guidelines to  
          implement the federal act and related programs and exempts  
          guideline development from the Administrative Procedures Act  
          (beginning at Section 11340 of the Government Code).

          The Energy Commission indicates that it will need about fifteen  
          new staff positions and $3 to $5 million in contract funds to  
          set up and implement the programs required under the bill and  
          the proposed federal act.

          The Public Utilities Commission indicates that it will need one  
          additional staff position and the Department of Community  
          Services and Development indicates that it will need two  
          additional staff positions to coordinate with the Energy  
          Commission, as required under the bill.