BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2409 (Allen) - Energy efficiency: financing: review.
Amended: June 26, 2012 Policy Vote: E,U&C 12-0
Urgency: No Mandate: No
Hearing Date: August 6, 2012 Consultant:
Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2409 would require the California Energy
Commission (commission) to review emerging technology financing
models used in other states to finance energy efficiency
technology deployments and services that maximize private sector
investment in California. The commission would be authorized to
establish and consult with an investment advisory group
consisting of private and public investors.
Fiscal Impact: Estimated $250,000 by first quarter of 2013 from
the Energy Resources Programs Account (General Fund) for the
commission to review and report in time for the 2012/13 update.
Estimated $100,000 to $200,000 biennially from the Energy
Resources Programs Account (General Fund) for the commission
to review and report. The next full integrated energy policy
report is planned for release in the last quarter of
2013/first quarter of 2014.
Likely minor costs biennially from various special funds to
collaborate with the commission to review and report.
Background: Pursuant to Public Resources Code 25302, beginning
November 1, 2003, and every two years thereafter, the commission
shall adopt an integrated energy policy report. This integrated
report shall contain an overview of major energy trends and
issues facing the state, including, but not limited to, supply,
demand, pricing, reliability, efficiency, and impacts on public
health and safety, the economy, resources, and the environment.
Proposed Law: This bill would require the commission to examine
all of the following:
(1) Long-term financing options, including, but not limited to,
establishing, facilitating, or improving bonding authority to
AB 2409 (Allen)
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provide tax-exempt bonds, private activity bonds, or private
investment bonds.
(2) Potential financing models for implementing shared savings
agreements between purchasers and sellers of energy efficiency
technologies.
(3) Potential financing models to finance energy efficiency
improvements for state infrastructure and equipment.
(4) Potential financing models to finance residential and
business energy efficiency improvements.
Staff Comments: The Energy Resources Programs Account
(3360-0465) is funded by a surcharge on electricity use of up to
three-tenths of a mill ($0.0003) surcharge per kilowatt hour.
(This account is considered a "mixed" account as it contains
General Funds and a small amount of special funds in the form of
permit fees). Funds in the account may be used for the program
proposed in this bill.
Due to the economic recession, energy use in the state has
declined, reducing revenues into the account. In the fall of
2010, the commission raised the surcharge to $0.00029. Based on
the increased surcharge, the account has a projected fund
balance of about $10 million at the end of 2011-12. However,
the commission also projects expenditures to be larger than
revenues in 2011-12 and thereafter.
The estimated account balance for 2012-12 is $7,166,000, down
significantly from the balance of $42,724,000 in 2011-12 and
$113,465,000 in 2010-11.