HB0263 Dougherty, Patrick

C O M M I T T E E

HB 263, HCA 1 -- ENERGY CONSERVATION LOANS

SPONSOR: Dougherty

COMMITTEE ACTION: Voted "do pass" by the Committee on Energy and Environment by a vote of 15 to 0.

This bill combines the existing school, local government, and small business conservation loan funds into one Energy Set-aside Program Fund, and extends the program to include hospitals, institutions of higher education, private schools, and other energy users authorized by the Department of Natural Resources through administrative rule. The department director is also authorized to establish public and private partnerships to further the implementation of energy conservation projects.

The effective date for combining the local government and small business funds with the new fund is July 1, 1996.

HCA 1 -- makes a technical correction.

FISCAL NOTE: No impact on state funds.

PROPONENTS: Supporters say that this bill would improve the financial management of these funds by allowing the allocation of loans among eligible sectors to be flexible in response to changes in demand. This flexibility does not exist under the current system of three separate loan funds. Inclusion of hospitals, institutions of higher education, and private schools is necessary to continue to obtain funding under the federal Institutional Conservation Program.

Testifying for the bill were Representative Dougherty; and the Department of Natural Resources Division of Energy.

OPPONENTS: There was no opposition voiced to the committee.

Terry Finger, Research Analyst