BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 338 - Alquist Hearing Date:
April 27, 2009 S
As Amended: April 15, 2009 FISCAL B
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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.
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.
Current law permits CAEATFA to provide financial assistance to
businesses manufacturing renewable energy components or systems.
Current state law allows CAEATFA to issue up to $1 billion in
revenue or prepayment bonds to fund projects and, under federal
law (Energy Act of 2005), CAEATFA can also offer financing at
lower than conventional costs through Clean Renewable Energy
Bonds (CREBs).
This bill adds the term "renewable energy technologies" to the
definition of a project revenue.
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
Inconsistent Statute - The Office of the State Treasurer reports
that CAEATFA has been able to use its bonding capacity to
establish a program that will incent manufacturers of
transportation technologies to locate or remain in California.
However, an inconsistency exists between its statutes that
define "project," "revenue," and its authority to assist
manufacturers of renewable energy technologies. In order to
issue bonds the Attorney General (as counsel for CAEATFA) must
issue an opinion, based on statute, that the bonds are being
lawfully issued. However if there is even the slightest
question on statutory authority the Attorney General cannot
issue the required opinion. Because of the statutory
inconsistency in these terms the Attorney General has advised
the Treasurer that he cannot issue a clean opinion. This bill
remedies that technical deficiency in the law.
POSITIONS
Sponsor:
City of San Jose
Support:
Applied Materials
Bloom Energy Corporation
California State Treasurer - Bill Lockyer
Oppose:
None on file
Kellie Smith
SB 338 Analysis
Hearing Date: April 27, 2009