BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2304
                                                                  Page  1

          Date of Hearing:  March 22, 2003

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                                 Sarah Reyes, Chair
                AB 2304 (Richman) - As Introduced:  February 19, 2004
           
          SUBJECT  :  Energy Resources

           SUMMARY  :  Amends and repeals requirements that the California  
          Energy Resources Conservation and Development Commission (CEC)  
          provides specified reports to the Legislature. Specifically,  
           this bill  :  

               1)     Repeals a requirement that the CEC submit quarterly  
                 reports to the legislature summarizing the amount of MTBE  
                 used in gasoline in California.

               2)     Repeals provision creating the Clean Fuels Account  
                 and mandating that $7 million of funds in the account be  
                 expended to advance the use of methanol fuel.

               3)     Consolidates several reports that the CEC provides  
                 to the Legislature regarding the operation of and  
                 expenditures from the Renewable Energy Program into one  
                 annual report.  

               4)     States that the bill will take effect immediately. 

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :  Under existing law, the CEC is required to provided  
          quarterly reports to the Legislature on the amount of MTBE used  
          in blended gasoline in California. However, beginning on January  
          1, 2004, the use of MTBE in gasoline was prohibited, leaving the  
          need to collect data on the use of MTBE irrelevant. 

          AB 1147, (Presley) Chapter 1340, Statutes of 1986, created the  
          Clean Fuels Account within the General Fund and allocated $7  
          million to the account to fund programs promoting the use of  
          methanol.  The CEC has completed all projects mandated under the  
          act and has expended all available funds. Since the program has  
          been completed, the CEC believes deletion of the code section is  
          appropriate. 

          Existing law creates various programs at the CEC to promote and   








                                                                  AB 2304
                                                                  Page  2

          develop renewable energy resources. The CEC is required to file  
          one quarterly report, two annual reports, and one bi-annual  
          report to the Legislature regarding the operation of these  
          programs and the expenditure of funds. This bill consolidates  
          the reports into one annual report. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Energy Resources Conservation and Development  
          Commission (CEC)
           

          Opposition 
           
          None on File
           


          Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083