BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 2304|
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                                 THIRD READING


          Bill No:  AB 2304
          Author:   Richman (R)
          Amended:  8/18/04 in Senate
          Vote:     27 - Urgency

           
           SENATE ENERGY, UTIL. & COMM. COMMITTEE  :  6-0, 6/8/04
          AYES:  Morrow, Alarcon, Battin, Dunn, Sher, Vasconcellos
          NO VOTE RECORDED:  Bowen, McClintock, Murray

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-0, 4/29/04 - See last page for vote


           SUBJECT  :    Energy resources

           SOURCE  :     Author


           DIGEST  :    This bill deletes several obsolete provisions  
          and consolidates reporting requirements related to the  
          California Energy Commission.

           Senate Floor Amendment  of 8/18/04 makes a change to conform  
          with pending legislation.  It corrects a reference to a  
          code section being amended by SB 1478 (Sher).

           ANALYSIS  :    Current law requires the California Energy  
          Commission (CEC) to submit quarterly reports to the  
          Legislature on the use of Methyl Tertiary-Butyl Ether  
          (MTBE) in gasoline by refinery.

          This bill deletes that requirement.
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                                                               AB 2304
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          Current law establishes a program promoting the use of  
          methanol fuel.

          This bill deletes that requirement.

          Current law imposes a variety of reporting requirements on  
          the CEC with varying reporting intervals on the status of  
          its existing renewable energy program.

          This bill consolidates those reporting requirements into a  
          single annual report.
          
           Background
           
          MTBE has been used in gasoline to boost octane, in place of  
          lead, and to promote cleaner combustion.  Concerns about  
          groundwater pollution led to the banning of MTBE in  
          California as of January 1, 2004.  The MTBE reporting  
          requirement, established in 1999, is therefore unnecessary.

          In 1986, the CEC was required to create a technology  
          demonstration for the use of methanol in heavy-duty diesel  
          engines, methanol-powered buses, and flexible fuel  
          vehicles.  That program, funded by proceeds from  
          settlements and judgements against oil companies for  
          misreporting oil revenues from state oil leases, has  
          lapsed.

          Since 1996, the CEC has administered a statutorily-created  
          program to encourage the use of renewable energy through  
          production incentives and consumer rebates.  The  
          Legislature has required a variety of reports to monitor  
          the success and status of the program.  Some of those  
          reports are required quarterly, others biannually or  
          annually.  This bill consolidates those reports into a  
          single annual report.

           Comments
           
          This bill is sponsored by the CEC.  The reporting  
          consolidation reduces the number of reports, but it does  
          not alter the content of what the CEC is statutorily  
          required to study and report on.  While more frequent  







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          reporting may have been appropriate when the program was  
          first implemented, now that the program has a track record,  
          less frequent reporting seems reasonable.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/18/04)

          California Energy Commission (source)


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,  
            Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,  
            Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,  
            Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,  
            Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton,  
            Houston, Jackson, Keene, Kehoe, Koretz, La Malfa, La  
            Suer, Laird, Leno, Levine, Lieber, Liu, Longville,  
            Lowenthal, Maddox, Matthews, Maze, McCarthy, Montanez,  
            Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete  
            McLeod, Oropeza, Parra, Reyes, Richman, Ridley-Thomas,  
            Runner, Salinas, Samuelian, Simitian, Spitzer, Steinberg,  
            Strickland, Wesson, Wolk, Wyland, Yee, Nunez
          NO VOTE RECORDED:  Haynes, Leslie, Maldonado, Pacheco,  
            Pavley, Plescia, Vargas, Wiggins


          NC:mel  8/19/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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