BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1314
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 1314 (Wieckowski) - As Amended:  March 31, 2011 

          Policy Committee:                              Natural 
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the California Energy Commission (CEC) to 
          develop and adopt biennially, instead of annually, an investment 
          plan for the Alternative and Renewable Fuel and Vehicle 
          Technology Program (ARFVT Program).

           FISCAL EFFECT  

          Negligible effect on CEC. 

           COMMENTS  

           1)Rationale.   The author reports this bill will help CEC 
            accommodate staffing reductions and hiring freezes and ensure 
            the commission releases a well-considered plan on time.

           2)Background.   In 2007, the Legislature enacted the California 
            Alternative and Renewable Fuel, Vehicle Technology, Clean Air, 
            and Carbon Reduction Act of 2007 (AB 118, N��ez, Chapter 50). 
            The act created two new programs-the ARFVT Program, to be 
            administered by the Energy Commission, and the Air Quality 
            Improvement Program, to be administered by the Air Resources 
            Board. The programs are funded primarily by increases in 
            various vehicle, vessel, and other air quality-related fees 
            that are projected to raise upwards of $150 million annually 
            for each of eight years. 
             
             The act identifies the primary goals of the ARFVT Program as 
            development and commercialization of technologies for 
            renewable and nonpetroleum fuels that help to achieve the 
            state's climate change goals. The act states that the program 








                                                                  AB 1314
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            is not to prefer any particular vehicle or fuel technology. 
            Rather, the program is to provide financial incentives, such 
            as grants, loans, and loan guarantees for specified types of 
            projects that meet specified criteria, including furtherance 
            of a number of air quality and other environmental and energy 
            goals. The act also requires CEC to adopt an ARFVT Program 
            investment plan and to update the plan annually.

          3)Support.  This bill is supported by CALSTART, an organization 
            that advocates for support and development of a clean 
            transportation industry.

           4)There is no formal opposition registered to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081