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

HB 263 -- Energy Conservation Loans

Sponsor:  Dougherty

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.