| Last Updated: | 5/18/2010 |
| Budget Issue: | May Revision Request to Establish the Clean and Renewable Energy Business Financing Revolving Loan Fund |
| Program: | Energy Resources Conservation and Development Commission |
| Finding or Recommendation: | We recommend that the Legislature adopt budget bill language tied to the commission's federal funds appropriation to provide that expenditures for the new Clean and Renewable Energy Business Financing Program are conditioned on enactment of legislation establishing the new revolving loan fund. |
May Revision Request to Establish New Revolving Loan Fund. The California Energy Commission has requested the establishment of the Clean and Renewable Energy Business Financing Revolving Loan Fund. The administration's proposal would authorize the Commission to conduct and administer the Clean and Renewable Energy Business Financing Program. The Commission proposes to utilize $30 million in federal funds from American Recovery and Reinvestment Act of 2009 in order to operate the revolving loan program. The budget proposes trailer bill language to establish this fund with continuous appropriation authority.
LAO Recommendation. We recommend that the Legislature adopt budget bill language tied to the Commission's federal funds appropriation to provide that the expenditure of up to $30 million for the Clean and Renewable Energy Business Financing Program is conditioned on enactment of legislation establishing the revolving loan fund to be administered by the program. This will ensure that any policy parameters that the Legislature wishes to place on the operation of the loan fund are in place before expenditures for this new program are made.