BILL NUMBER: SBX1 2 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 8, 2001
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, and
to amend and repeal Section 739.1 of, 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 require the commission to establish the
Low-Income Oversight Board for the purpose of monitoring
and evaluating the implementation of low-income programs for
electricity and gas customers advising the commission
on low-income electric and gas customer issues and serving as a
liaison for the commission to low-income ratepayers and
representatives . The bill would require, beginning in 2002,
the commission, with the assistance of the Low-Income
Oversight Board , to conduct an assessment of
need to enhance program delivery and ensure that funding adequately
reflects certain needs, on a periodic basis the needs
of low-income electricity and gas ratepayers. The bill would require
the assessment to include an evaluation of the implementation of
low-income programs and the effectiveness of weatherization services
and energy efficiency measures in low-income households .
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 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
examine methods to enhance CARE enrollment, including comparing
information from CARE and the Universal Lifeline Telephone Service
(ULTS) to determine the most effective means of utilizing that
information to increase CARE enrollment, automatic enrollment of ULTS
customers who are eligible for the CARE program, customer privacy
issues, and alternative mechanisms for outreach to potential
enrollees . 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 provide that the
above provisions would remain in effect only until January 1, 2006
.
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 31 , 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 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 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 Alternate
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 seniors and low-income
families low-income ratepayers 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
low-income ratepayers , 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
ratepayers 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
the needs of low-income electricity and gas ratepayers
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. commission with the assistance of
the Low-Income Oversight Board. The assessment shall evaluate
low-income program implementation and the effectiveness of
weatherization services and energy efficiency measures in low-income
households. The assessment shall consider whether existing programs
adequately address 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.
382.1. (a) The commission shall establish a Low-Income Oversight
Board that shall advise the commission on low-income electric and gas
customer issues and shall serve as a liaison for the commission to
low-income ratepayers and representatives. The Low-Income Oversight
Board shall replace the Low-Income Advisory Board in existence on
January 1, 2000. The Low-Income Oversight Board shall do all of the
following:
(1) Monitor and evaluate implementation of all programs provided
to low-income electricity and gas customers.
(2) Assist in the development and analysis of any assessments of
low-income electricity and gas customer need.
(3) Ensure Encourage 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
Provide reports to the Legislature, as requested, 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
(5) Assist in streamlining 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
(6) Encourage 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 nine 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 of the Governor .
(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)
(3) One member who is a commissioner or commissioner designee.
(4) One member who is a representative of the Department of
Community Services and Development Department.
(6)
(5) 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.
(6) One member who is a representative of an electrical or gas
corporation.
(c) The Low-Income Oversight Board shall act
independently of the commission and shall alternate meeting
locations between northern , central, and southern
California.
(d) The Low-Income Oversight Board shall not have ratemaking
authority, but shall advise the commission on low-income issues.
(e) The Low-Income Energy
(d) The Low-Income Oversight Board may establish a technical
advisory committee consisting of low-income service providers,
utility representatives, consumer organizations, and commission
staff, to assist the board and may request utility
representatives and commission staff to assist the technical advisory
committee.
(f)
(e) 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)
(f) (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 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) The local publicly owned electric utility shall increase the
level of the discount or raise the eligibility level for any existing
rate assistance program to be reflective of customer need.
(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.
(d) A local publicly owned electric utility shall establish
penetration goals for its rate assistance program participation.
(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 program . 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) 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.
(c) The commission shall examine methods to enhance CARE
enrollment and participation. This examination shall include, but
need not be limited to, comparing information from CARE and the
Universal Lifeline Telephone Service (ULTS) to determine the most
effective means of utilizing that information to increase CARE
enrollment, automatic enrollment of ULTS customers who are eligible
for the CARE program, customer privacy issues, and alternative
mechanisms for outreach to potential enrollees. The commission shall
ensure that a customer consents prior to enrollment. The commission
shall consult with interested parties, including ULTS providers, to
develop the best methods of informing ULTS customers about other
available low-income 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.
(f) It is the intent of the Legislature that the commission ensure
CARE program participants are afforded the lowest possible electric
and gas rates and, to the extent possible, are exempt from additional
surcharges attributable to the current energy crisis.
(g) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
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.