BILL ANALYSIS 1
1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SBX8 22 - Padilla/Strickland
Hearing Date: February 16, 2010 S
As Introduced: February 1, 2010 FISCAL B
X
8
2
2
DESCRIPTION
Current law creates the California Alternative Energy and
Advanced Transportation Financing Authority (CAEATFA) for the
purpose of promoting the development and utilization of
alternative energy sources and the development and
commercialization of advanced transportation technologies and
authorizes up to $1 billion in revenue or prepayment bonds to
fund projects.
Current law permits CAEATFA to provide bond financing for the
development and commercialization of competitive advanced
transportation technologies and facilities utilizing alternative
methods and sources of energy.
This bill (as proposed to be amended) expands the definition of
project to include alternative source components.
BACKGROUND
The California Alternative Energy Source Financing Authority was
created in 1980 with an authorization of $200 million in revenue
bonds to finance projects utilizing alternative sources of
energy, such as cogeneration, wind and geothermal power. It was
renamed in 1994 as the California Alternative Energy and
Advanced Transportation Financing Authority and its charge
expanded to include the financing of "advanced transportation"
technologies.
During the energy crisis of 2001, its authority was again
expanded, this time to provide financial assistance to public
power entities, independent generators, and others for new and
renewable energy sources, and to develop clean distributed
generation.
CAEATFA consists of five members: the Director of Finance, the
Chairman of the California Energy Commission, the President of
the Public Utilities Commission, the Controller, and the
Treasurer. Its current mission is to provide financing for
facilities that use alternative energy sources and technologies.
CAEATFA also provides financing for facilities needed to
develop and commercialize advanced transportation technologies
that that conserve energy, reduce air pollution, and promote
economic development and jobs.
COMMENTS
1. Author's Amendments - The author has proposed the
following amendments which narrow the bill:
Page 3, line 19, strike ", and is intended primarily
to offset part or all of the customer's own electrical
requirements" and strike line 20.
Page 4, strike lines 7 through 9.
Page 5, strike lines 32 through 40 and on page 6,
strike lines 1 though 20.
2. Author's Goal - The intent of this bill is to provide
the CAETAFA with additional tools to establish a program
that will incent manufacturers of renewable technologies
such as solar to locate or remain in California. This bill
would expand financial assistance available under CAETAFA
for renewable manufacturing components.
3. Sales & Use Taxes - Current law provides that "sale" and
"purchase" of equipment for eligible CAETAFA projects does
not include any transfer of title of tangible property
constituting any project to the authority by a
participating party, nor any lease or transfer to any
participating party, as specified. The inclusion of
renewable manufacturing components could impact the sales
and use taxes.
4. Double Referral - Should this bill pass this committee,
it should be referred back to the Senate Rules Committee.
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Kellie Smith
SBX8 22 Analysis
Hearing Date: February 16, 2010