Synopsis of the Commission's Budget for Fiscal Year 2008-2009

The California Energy Commission's (Commission) proposed FY 2008/09 budget is $363.5 million. Included in this amount are $67.0 million Renewable Resource Trust Fund (Renewables) funds, $74.8 million Public Interest Research, Development and Demonstration (RD&D) (PIER) funds, $65.4 million Energy Resources Programs Account (ERPA) funds; $100.9 million Alternative and Renewable Fuel and Vehicle Technology (ARFVT) funds; $21.0 million Natural Gas Subaccount, Public Interest RD&D funds; $22.4 million Federal funds; $5.8 million Reimbursement funds; $2.3 million Geothermal Resource Development Account (GRDA) funds; and $3.9 million other funds.

The Commission's proposed FY 2008/09 budget is $329.8 million less than estimated FY 2007/08 expenditures. This decrease is primarily the result of SB 1036 (Perata), Chapter 685, Statutes of 2007. SB 1036 eliminates Supplemental Energy Payments and requires the Commission to transfer the unencumbered funds in the New Renewable Resource Account (an account within the Renewables account, Fund 0382), projected at $412.0 million, to the IOUs in late FY 2007/08. The FY 2008/09 budget includes an increase of $100.9 million for the ARFVT fund, an increase of $10.0 million in Federal funds for Phase III Carbon Sequestration, and a decrease of $31.8 million in projected PIER pass-through expenditures.

Proposed authorized positions are 596.1. Total proposed support funding is $94.8 million, consisting of $56.4 million for personal services, $22.3 million for contracts, and $16.1 million for other operating. Special item or pass-through funding is $268.7 million.


Budget Change Proposals

The Commission's Budget Change Proposal's request a total of $110.7 million and 39.5 new positions.


Funds

Highlights of the various funds in the Commission Budget:

Alternative and Renewable Fuel and Vehicle Tech Funds - proposed expenditure level is $100,891K. These funds include $891K for 6.0 positions and $100,000K for pass-through projects. The ARFVT is a new fund for FY 2008/09, created by AB 118 (Nunez), Chapter 750, Statutes of 2007. The ARFVT will fund grants, loans, and other appropriate measures to public agencies, public-private partnerships, and other entities to develop alternative fuels and related technologies, including electricity, ethanol, renewable diesel, natural gas, hydrogen, and biomethane, among others. Language is included in the Budget Bill to allow for a two-year encumbrance period to 6/30/10 and a liquidation period to 6/30/14.

Energy Conservation Assistance Account/Local Jurisdiction Energy Assistance Account Funds - proposed expenditure level is $960K. These continuously appropriated funds include $275K for 2.0 positions and $3,685K, less projected $2,725K in repayments, in pass-through funding for energy efficiency loans to schools, hospitals, and local jurisdictions.

Energy Facility License and Compliance Fund - proposed expenditure level is $2,503K for power plant siting and compliance monitoring peak workload.

ERPA Funds - proposed expenditure level is $65,423K. ERPA is the primary funding source for Commission staff, contract, and operating expenses.

Energy Technology Research, Development and Demonstration Account (ETRDDA) Funds - proposed expenditure level is $250K for Agricultural/Food Processing Energy Loans. Language is included in the Budget Bill to allow for a two-year encumbrance period to 6/30/10 and a liquidation period to 6/30/12.

Federal Funds - proposed expenditure level is $22,366K. These funds include $3,017K in staff support and contracts for the State Energy Program and $19,349K for anticipated federal awards for various Commission programs.

Geothermal Resource Development Account Funds - proposed expenditure level is $2,306K. These funds include $306K for 3.9 positions and $2,000K for local assistance. Language is included in the Budget Bill to allow for a two-year encumbrance period to 6/30/10 and a liquidation period to 6/30/12.

Motor Vehicle Account Funds - proposed expenditure level is $139K. These funds support 2.0 positions.

Natural Gas Subaccount, Public Interest Research, Development and Demonstration Fund - proposed expenditure level is $21,000K. These funds include $2,162K for 17.0 positions, operating, and baseline contracts. Additionally, another $18,838K is for pass-through natural gas RD&D projects. Language is included in the Budget Bill to allow for a two-year encumbrance period to 6/30/10 and a liquidation period to 6/30/14.

Public Interest Energy Research, Development, and Demonstration Fund - proposed expenditure level is $74,816K. These funds include $12,316K for 70.1 positions, operating, and baseline technical support contracts and $62,500K for pass-through RD&D projects. Language is included in the Budget Bill to allow for a two-year encumbrance period to 6/30/10 and a liquidation period to 6/30/14.

Reimbursements - proposed expenditure level is $5,820K. These funds are primarily expenditure authority for anticipated funding from government agencies.

Renewable Fund - proposed expenditure level is $67,047K. These funds include $7,647K for 36.0 positions, operating, and baseline contracts. Additionally, another $59,400K is continuously appropriated for Renewables projects.


Budget Bill Special Language

Liquidation period - proposed extension of the liquidation period for ERPA funds (Budget Act of 2002) to 6/30/09.

Liquidation period - proposed extension of the liquidation period for PIER funds (Budget Act of 2003) to 6/30/10.

Current and Proposed Budgets