BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2304
                                                                  Page  1

          Date of Hearing:  April 12, 2004

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                             Hannah-Beth Jackson, Chair
                AB 2304 (Richman) - As Introduced:  February 19, 2004
          
          SUBJECT  :  Energy resources.

           SUMMARY  :  This bill makes deletions and changes to the existing  
          reporting requirements for the California Energy Commission  
          (CEC) regarding Methyl Tertiary Betyl Ether (MTBE), Clean Fuels  
          Account and Renewable Energy Program.

           EXISTING LAW  :

          1)Requires the CEC to provide quarterly reports to the  
            Legislature on the amount of MTBE used in blended gasoline.

          2)Creates the Clean Fuels Account and Mandates the CEC to carry  
            out a program to expand the use of methanol fuel.

          3)Establishes the Renewable Energy Program within the CEC.

          4)Requires the CEC to provide quarterly, annual and biennial  
            reports on the Renewable Energy Program.

           THIS BILL  :

          1)Repeals the mandate to provide quarterly reports on the amount  
            of MTBE used in blended gasoline.

          2)Repeals the Clean Fuels Account within the CEC.

          3)Consolidates the Renewable Energy Program reports into one  
            annual report.

          4)Includes an urgency clause, providing for the bill to take  
            effect immediately.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           1)Background  









                                                                  AB 2304
                                                                  Page  2

          According to the Author's office, this bill is a clean-up  
          measure designed to consolidate reporting requirements for the  
          CEC allowing them to free up staff for other tasks without  
          reducing program accountability.



           2)MTBE Quarterly Reports  

          Under existing law, the CEC is required to prepare a quarterly  
          report on the amount of MTBE used in California gasoline.   
          However, because MTBE has been banned from gasoline (beginning  
          January 1, 2004), the need to report on the amount of MTBE in  
          California gasoline is no longer necessary.  This bill deletes  
          the reporting requirement on MTBE.

           3)Clean Fuels Account
          
          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.  According to the CEC, the program has been completed  
          and the funds fully expended.  In addition, no additional  
          activity is planned with methanol vehicles or as a follow-up to  
          the already completed projects.  This bill repeals the Clean  
          Fuels Account within the General Fund.

           4)Renewable Energy Program
           
          Existing law creates the Renewable Energy Program to promote and  
          develop renewable energy resources within the CEC.  In addition,  
          existing reporting requirements include quarterly, annual and  
          biennial reports on the program.  This bill consolidates those  
          reports into a single annual report.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Energy Commission

           Opposition 
          
          None on file









                                                                  AB 2304
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          Analysis Prepared by  :  Kyra Emanuels Ross / NAT. RES. / (916)  
          319-2092