BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 363 - Hancock Hearing Date:
April 27, 2009 S
As Amended: April 15, 2009 FISCAL B
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DESCRIPTION
Current law establishes the State Energy Conservation Assistance
Account (SECAA) to provide grants and loans to local
governments, schools and other public institutions for financing
energy efficiency and distribution generation measures.
This bill creates a sub-account within SECAA for the deposit of
proceeds from the settlement of the legal proceedings against
The Williams Companies, Inc. and Williams Energy Marketing and
Trading Company to be used for loans to schools for the
installation of solar energy systems.
BACKGROUND
In 2002, California parties entered a settlement of energy
crisis claims against Williams Energy. The Williams settlement
resolved two separate complaints filed in state court by
California's Attorney General (AG), then Bill Lockyer. One
complaint alleged Williams violated the state's Unfair
Competition Act by illegally pricing its energy. The second
alleged Williams double-sold power in violation of rules
designed to ensure the reliability of the electricity grid, and
unjustly profited by charging the state millions of dollars for
emergency generating capacity that the company never provided as
promised. The settlement also resolved other lawsuits filed by
local governments and private plaintiffs.
The settlement was valued at $417 million by the Attorney
General and included a schedule of specified cash payments to
the state for specified purposes including $25 million to an
"Alternative Energy Retrofit Account" at the Power Authority for
"retrofit of schools and public buildings." The account was not
created, the Power Authority no longer exists, and all
settlement proceeds have been exhausted.
COMMENTS
Revolving Loan Fund - The SECAA provides loans of up to $3
million public schools, colleges, cities, counties, special
districts, public hospitals, and public care institutions at
3.95 percent interest for up to 15 years. The loan program is
designed so that the energy savings achieved will cover the
costs of the project and loan interest. Eligible projects
include lighting, building insulation, heating and air
conditioning modifications, automated energy management
systems/controls and energy generation including renewable
energy projects and cogeneration.
This bill would create a new sub account in the SECAA program to
fund loans for schools at 1.5 percent specifically for solar
energy systems. However, there are no funds left as a result of
the Williams settlement. The author and committee may wish to
consider striking all references to the Williams funds. A
sub-account would remain for solar for schools in the event that
new monies were made available as a result of the American
Reinvestment and Recovery Act or other sources, upon
appropriation by the Legislature.
POSITIONS
Sponsor:
Coalition for Adequate School Housing
KyotoUSA
Support:
Albany (CA) Sustainability Committee
Albany Unified School District's Pool Sustainability Committee
California Interfaith Power and Light
Carbon Neutral Albany
City of Richmond
Community Environmental Council
Creekcats Environmental Partners
Dharma Merchant Services
Dreyfuss & Blackford Architects
Ecology Center
Green Chamber of Commerce
Green Sangha
San Francisco Bay Area chapter of Physicians for Social
Responsibility
Sequoia Foundation
Solar Panels for Albany High
The Vote Solar Initiative
Warner Bros. Entertainment
15 individuals
Oppose:
None on file
Kellie Smith
SB 363 Analysis
Hearing Date: April 27, 2009