BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2918|
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THIRD READING
Bill No: AB 2918
Author: Laird (D)
Amended: 7/12/04 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 6-1, 6/29/04
AYES: Bowen, Alarcon, Battin, Murray, Sher, Vasconcellos
NOES: McClintock
NO VOTE RECORDED: Morrow, Dunn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 46-31, 5/20/04 - See last page for vote
SUBJECT : Desalination facilities: electricity rates
SOURCE : Author
DIGEST : This bill requires the State Public Utilities
Commission to evaluate electricity and water policies as
they relate to desalination plants. The bill requires a
report of findings to the Legislature by January 1, 2006.
ANALYSIS : Under existing law, the State Public Utilities
Commission (PUC) regulates public utilities and determines
just and reasonable rates.
Desalination is a water supply alternative in many areas of
the state with an inadequate local fresh water supply, but
with access to sea water, such as the Monterey Peninsula.
The desalination process is energy intensive, so
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electricity rates are a large component (75 percent,
according to the author's office) of the cost of producing
the water. The author's office argues that new
desalination plants were not part of the forecast and
procurement by electric utilities and the State Department
of Water Resources (DWR), so they shouldn't pay the same
high electricity rates, which include the residual costs of
the electricity crisis, as other similar customers.
This bill requires the PUC to evaluate the
interrelationships between the commission's electric policy
and water policy as it relates to saline water conversion
through ocean desalination.
The PUC shall invite DWR, the State Water Resources Control
Board, the State Department of Fish and Game, the
California Energy Commission, and the California Coastal
Commission to participate in the evaluation.
The bill requires a report to the Governor and the
Legislature by January 1, 2006 on the balance between the
interests of electricity and water ratepayers.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/4/04)
Association of California Water Agencies
East Bay Municipal Utility District
San Diego County Water Authority
ASSEMBLY FLOOR :
AYES: Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,
Chu, Cohn, Corbett, Correa, Dutra, Dymally, Firebaugh,
Frommer, Goldberg, Hancock, Harman, Jackson, Kehoe,
Koretz, Laird, Leno, Levine, Lieber, Liu, Longville,
Lowenthal, Matthews, Montanez, Mullin, Nakano, Nation,
Negrete McLeod, Parra, Pavley, Reyes, Ridley-Thomas,
Salinas, Simitian, Steinberg, Vargas, Wesson, Wiggins,
Wolk, Yee, Nunez
NOES: Aghazarian, Bates, Benoit, Bogh, Campbell, Cogdill,
Cox, Daucher, Diaz, Dutton, Garcia, Haynes, Shirley
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Horton, Houston, Keene, La Malfa, La Suer, Leslie,
Maddox, Maldonado, McCarthy, Mountjoy, Nakanishi,
Pacheco, Plescia, Richman, Runner, Samuelian, Spitzer,
Strickland, Wyland
NO VOTE RECORDED: Jerome Horton, Maze, Oropeza
NC:cm 8/5/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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