BILL NUMBER: SBX1 2 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 25, 2001
AMENDED IN SENATE MARCH 29, 2001
INTRODUCED BY Senators Alarcon, Chesbro, Escutia, Sher, Soto, and
Vincent
(Coauthors: Assembly Members Diaz, Firebaugh, Koretz, and
Oropeza)
JANUARY 17, 2001
An act to amend Sections 382, 739.1, and 2790 of, and to add
Sections 382.1 and 386 to, the Public Utilities Code, relating to
public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 2, as amended, Alarcon. Public utilities.
(1) Existing law requires the Public Utilities Commission to
establish a program of assistance to low-income electric and gas
customers, which is referred to as the California Alternate Rates for
Energy or CARE program.
This bill would establish the Low-Income Oversight Board for the
purpose of monitoring and evaluating the implementation of low-income
programs for electricity and gas customers. The bill would require,
beginning in 2002, the Low-Income Oversight Board to conduct
a comprehensive needs an assessment of
both program implementation and the effectiveness of
specific energy efficiency services need to enhance
program delivery and ensure that funding adequately reflects certain
needs, on a periodic basis.
The bill would require the commission to ensure that the CARE
discount correctly reflects the level of need of customers.
The bill would require the commission to work with public utility
electrical and gas corporations to establish penetration goals. The
bill would require the commission to adjust the current CARE
balancing account of the utilities to ensure for maximum efficiency
and greater program outreach.
The bill would require public utility electrical and gas
corporations to work with public utility telephone corporations and
other low-income programs to streamline the eligibility for
low-income rate programs and would require that customers already
enrolled in the Universal Lifeline Telephone Services program and
eligible for the CARE program to be automatically enrolled in the
CARE program the commission to collect data from
Universal Lifeline Telephone Service (ULTS) providers on ULTS
customers and enroll eligible customers into the CARE program. The
bill would require the commission to work with ULTS providers to
inform ULTS customers about low-income energy programs. The bill
would require the commission to enhance the CARE application process,
and to the extent possible, streamline ULTS and CARE applications
and the enrollment process . The bill would require that,
until January 1, 2005, electricity and gas rates for CARE program
participants be equivalent to those in effect as of January 1, 2000.
The bill would require weatherization programs to use the needs
assessment conducted by the Low-Income Oversight Board to maximize
efficiency of delivery.
(2) Existing law requires each local publicly owned electric
utility that has not implemented programs for low-income electricity
customers or completed an assessment of need for those programs on or
before December 21, 2000, to perform a needs assessment, as
prescribed, and determine the amount of total funds collected to be
allocated to low-income programs.
This bill would require a local publicly owned electric utility
that has not complied with these provisions to establish a
program of rate assistance to low-income electric customers, the cost
of which may not be borne solely by one class of customer, including
requirements for a 30% rate discount, eligibility standards based on
income, and 98% to increase the level of discounts or
raise the eligibility level of existing low-income programs to be
reflective of customer need, to streamline enrollment, and to
establish penetration goals. The bill would authorize
the local publicly owned electric utility to increase the level of
the discount or raise the eligibility level based on an assessment of
customer need. The bill would prohibit an increase in any
customer surcharge as a result of this program.
(3) A violation of the Public Utilities Act is a crime. This bill
would change the definition of that crime by adding new requirements
for electric utilities, thereby imposing a state-mandated local
program.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 382 of the Public Utilities Code is amended to
read:
382. (a) Programs provided to low-income electricity customers,
including, but not limited to, targeted energy-efficiency services
and the California Alternative Rates for Energy program shall be
funded at not less than 1996 authorized levels based on an assessment
of customer need.
(b) In order to meet legitimate needs of electric and gas
customers who are unable to pay their electric and gas bills and who
satisfy eligibility criteria for assistance, recognizing that
electricity is a basic necessity, and that all residents of the state
should be able to afford essential electricity and gas supplies, the
commission shall ensure that the energy expenditure of
low-income families does not exceed 8 percent of their entire income.
Energy expenditure may be reduced through establishing different
rates for such customers, rate assistance, and energy
seniors and low-income families are not jeopardized or overburdened
by monthly energy expenditures. Energy expenditure may be reduced
through the establishment of different rates for senior and
low-income customers, different levels of rate assistance, and energy
efficiency programs.
(c) Nothing in this section shall be construed to prohibit
electric and gas providers from offering any special rate or program
for low-income customers, seniors, or fixed income customers that is
not specifically required in this section.
(d) The commission shall allocate funds necessary to meet the
low-income objectives in this section.
(e) Beginning in 2002, an assessment of need shall be conducted
periodically by the Low-Income Oversight Board pursuant to Section
382.1 to enhance program delivery and ensure that funding adequately
reflects low-income electricity and gas customers' energy
expenditures, hardship, language needs, and economic burdens.
SEC. 2. Section 382.1 is added to the Public Utilities Code, to
read:
382.1. (a) A Low-Income Oversight Board shall be established that
shall report directly to the Legislature and work with the
commission for the purposes of monitoring and evaluating the
implementation of all programs provided to low-income electricity and
gas customers. The Low-Income Oversight Board shall do, but is not
limited to doing, all of the following:
(1) Oversee the development of an assessment of customer need
pursuant to Section 382.
(2) Ensure that a comprehensive needs assessment is conducted
periodically to evaluate program implementation and the effectiveness
of specific weatherization services and energy efficiency measures.
(3) Ensure collaboration between state and utility programs for
low-income electricity and gas customers to maximize the
leverage of state and federal energy efficiency funds to both lower
the bills and increase the comfort of low-income customers .
(4) Produce reports to the Legislature summarizing the assessment
of need, audits, and analysis of program implementation.
(5) Work with the commission to reduce duplication of efforts.
(6) Work to streamline the application and enrollment process of
programs for low-income electricity and gas customers with
general low-income programs, including, but not limited to, the
Universal Lifeline Telephone Service (ULTS) program .
(7) Promote the usage of the network of community service
providers in accordance with Section 381.5.
(b) The Low-Income Oversight Board shall be comprised of 13
members to be selected by the commission from each of the following
groups:
(1) Four members who have expertise in the low-income community
and who are not affiliated with any state or utility group.
These members shall be selected in a manner to ensure an equitable
geographic distribution.
(2) One member who is a representative from the Governor's office.
(3) One member who is a designated representative of the
commission and who has expertise in the area of low-income programs.
(4) One member who is a designated representative of the State
Energy Resources Conservation and Development Commission.
(5) One member who is a representative of the Department of
Community Services and Development Department.
(6) One member who is a provider for the Low-Income Home Energy
Assistance Program (LIHEAP).
(7) Four members who are representatives from each of the
electrical corporations and who have expertise in the area of
programs for low-income electricity and gas customers.
(c) The Low-Income Oversight Board shall act independently of the
commission and shall alternate meeting locations between
northern and southern California .
(d) The Low-Income Oversight Board shall not have ratemaking
authority, but shall direct advise the
commission on low-income issues.
(e) The Low-Income Energy Board may establish a technical advisory
committee to assist the board and may request utility
representatives and commission staff to assist the technical advisory
committee.
(f) The commission shall do all of the following in conjunction
with the board:
(1) Work with the board and community-based organizations to
increase participation in programs for low-income customers.
(2) Provide technical support to the board.
(3) Ensure that the energy burden of low-income electricity and
gas customers is reduced.
(4) Provide formal notice of board meetings in the commissions'
daily calendar.
(g) (1) Members of the board and members of the technical advisory
committee shall be eligible for compensation in accordance with
state guidelines for necessary travel.
(2) Members of the board and members of the technical advisory
committee who are not salaried state service employees shall be
eligible for reasonable compensation for attendance at board
meetings.
(3) All reasonable costs incurred by the board, including,
staffing, travel, and administrative costs, shall be part of the
budget of the commission and the commission shall consult with the
board in the preparation of its that portion
of the commission's annual proposed budget.
(4) If the Low-Income Oversight Board is duplicative of the
commission's Low-Income Advisory Board, the commission's Low-Income
Advisory Board shall be dissolved and its budget shall be applied to
the Low-Income Oversight Board's budget.
SEC. 3. Section 386 is added to the Public Utilities Code, to
read:
386. (a) Each local publicly owned electric utility shall ensure
the following:
(1) Low-income families within the utility's service territory
have access to affordable electricity.
(2) The current level of assistance reflects the rising level of
need.
(3) Low-income families are afforded energy efficiency measures
that reduce energy consumption at no cost.
(b) If a local publicly owned electric utility has not complied
with the provisions under subdivision (b) of Section 385 it shall
establish a program of rate assistance to low-income electric
customers, the cost of which may not be borne solely by any single
class of customer. The local publicly owned electric utility shall
establish a rate discount of 30 percent. Eligibility shall be
established for individuals with income at or below 200 percent the
federal poverty level or 60 percent of the state median income,
whichever is higher.
(c)
(b) The local publicly owned electric utility may
shall increase the level of the discount or
raise the eligibility level based on an assessment
for any existing rate assistance program to be reflective
of customer need.
(d)
(c) A publicly owned electric utility shall streamline
enrollment for low-income programs by collaborating with existing
providers for the Low-Income Home Energy Assistance Program (LIHEAP),
Universal Lifeline Telephone Service (ULTS) program providers, and
other electric or gas providers within the same service territory.
(e) A local publicly owned electric utility shall establish a 98
percent penetration goal
(d) A local publicly owned electric utility shall establish
penetration goals for its rate assistance program
participation.
(f)
(e) No provision of this section shall result in an increase
in any surcharge for customers of a publicly owned electric utility.
SEC. 4. Section 739.1 of the Public Utilities Code is amended to
read:
739.1. (a) The commission shall establish a program of assistance
to low-income electric and gas customers, the cost of which shall
not be borne solely by any single class of customer. The program
shall be referred to as the California Alternate Rates for Energy or
CARE programs. The commission shall ensure that the level of
discount for low-income electric and gas customers correctly reflects
the level of need.
(b) The commission shall work with the public utility electrical
and gas corporations to establish penetration goals. The commission
shall adjust the current CARE balancing account corporation to ensure
for maximum efficiency and greater program outreach.
(c) Public utility electrical and gas corporations shall work with
public utility telephone corporations, providers for the Low-Income
Home Energy Assistance Program (LIHEAP), and other low-income
programs to streamline the eligibility for low-income rate programs.
Public utility electrical and gas corporations shall seek referrals
from Universal Lifeline Telephone Service program (ULTS) providers,
using ULTS data, to maximize CARE enrollment. The commission shall
monitor the transfer of data to minimize any breach of
confidentiality. To the extent possible, ULTS program customers
eligible for CARE shall be automatically enrolled into the CARE
program after customer affirmation. The commission shall work to
develop methods to automatically enroll eligible customers into
multiple low-income utility programs. The commission shall work with
public utilities to meet the low-income objectives in this section.
(d)
(c) The commission shall collect data from Universal Lifeline
Telephone Service (ULTS) providers on ULTS customers and enroll
eligible customers into the CARE program. The commission shall work
with ULTS providers to inform ULTS customers about low-income energy
programs. The reasonable costs incurred by ULTS providers for CARE
outreach shall be recovered from commission allocated CARE funds.
(d) The commission shall enhance the CARE application process, and
to the extent possible, streamline ULTS and CARE applications and
the enrollment process. The commission shall work with public
utility electric and gas corporations, ULTS providers, and the
Low-Income Oversight Board established in Section 382.1 to meet the
low-income objectives in this section.
(e) The commission's program of assistance to low-income
electric and gas customers shall, as soon as practicable, include
nonprofit group living facilities specified by the commission, if the
commission finds that the residents in these facilities
substantially meet the commission's low-income eligibility
requirements and there is a feasible process for certifying that the
assistance shall be used for the direct benefit, such as improved
quality of care or improved food service, of the low-income residents
in the facilities. The commission shall authorize utilities to
offer discounts to eligible facilities licensed or permitted by
appropriate state or local agencies, and to facilities, including
women's shelters, hospices, and homeless shelters, that may not have
a license or permit but provide other proof satisfactory to the
utility that they are eligible to participate in the program.
(e) Notwithstanding any other provision of law, until January 1,
2005, electricity and gas rates for CARE program participants shall
be equivalent to those in effect as of January 1, 2000.
SEC. 5. Section 2790 of the Public Utilities Code is amended to
read:
2790. (a) The commission shall require an electrical or gas
corporation to perform home weatherization services for low-income
customers, as determined by the commission under Section 739, if the
commission determines that a significant need for those services
exists in the corporation's service territory, taking into
consideration both the cost-effectiveness of the services and the
policy of reducing the hardships facing low-income households.
(b) (1) For purposes of this section, "weatherization" may
include, where feasible, any of the following measures for any
dwelling unit:
(A) Attic insulation.
(B) Caulking.
(C) Weatherstripping.
(D) Low flow showerhead.
(E) Waterheater blanket.
(F) Door and building envelope repairs that reduce air
infiltration.
(2) The commission shall direct any electrical or gas corporation
to provide as many of these measures as are feasible for each
eligible low-income dwelling unit.
(c) "Weatherization" may also include other building conservation
measures, energy-efficient appliances, and energy education programs
determined by the commission to be feasible, taking into
consideration for all measures both the cost-effectiveness of the
measures as a whole and the policy of reducing energy-related
hardships facing low-income households.
(d) Weatherization programs shall use the needs assessment
pursuant to Section 382.1 to maximize efficiency of delivery.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.