The state\u2019s energy agencies remain relatively unscathed through the deal making and breaking as the budget finally arrived almost three months late on the governor\u2019s desk. The new budget also largely eliminates fears about energy-related bill vetoes. Governor Arnold Schwarzenegger threatened to veto all legislation on his desk if lawmakers overrode his veto of an earlier budget deal. The California Energy Commission held off on approving several million dollars in contracts funded by the Public Interest Energy Research fund. In May, the agency agreed to divert $12 million of PIER funds to community colleges to help fund green energy job training programs, as would be authorized by SB 1762, which is awaiting the governor\u2019s signature. Jackie Pfannanstiel, Energy Commission chair, said the contract approvals were delayed because \u201cI simply wanted to see if that bill gets signed to see if there needs to be funding reallocations within PIER.\u201d The agreements are expected to approved next month. The California Public Utilities Commission, Energy Commission, and Department of Water Resources are funded predominantly by special funds and largely immune from battles over the state\u2019s General Fund. In \u201cnot quite \u2018It\u2019s the Law,\u2019\u201d the federal government passed what appears to be Bic-proof extension of subsidies for renewable energy. At press time, the House is about to vote on the Renewable Energy and Job Creation Tax Act of 2008. The bill provides $15 billion in tax incentives for renewables, carbon sequestration, and efficiency. It also extends $42 billion of production and investment tax credits for renewables. Wind developers look for production credits (paid over time), while solar developers claim the need for seed investments (one-time investment). The administration threatens to veto this legislation, however. Although the credit market from all accounts appears to be tight, both banking and renewable energy industry sources told Circuit that financing for choice projects is not as constricted as other debt. The Senate September 23 overwhelmingly passed the Energy Improvement and Extension Act of 2008, which is supported by the Bush administration. Its provisions are largely aimed at Alternative Minimum Tax credits--over $60 billion--while renewable tax breaks take up about $2 billion. This legislation appears to be veto-proof. In the reverse of \u201cIt\u2019s the Law,\u201d Congress is set to let the ban on offshore drilling for gas and oil off the coast of California and other states expire at the end of September. California legislators say they will not allow new drilling off the coast of this state. However, Florida and the Gulf of Mexico may be targets.