BILL NUMBER: SB 168	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Energy, Utilities and Communications
(Senators Bowen (Chair), Battin, Dunn, Morrow, and Sher)

                        FEBRUARY 12, 2003

   An act to amend Section 445 of the Public Utilities Code, relating
to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 168, as introduced, Committee on Energy, Utilities and
Communications.    Renewable Resource Trust Fund.
   Existing law provides for the Renewable Resource Trust Fund in the
State Treasury and establishes certain accounts in the Renewable
Resource Trust Fund.  Existing law requires, upon notification by the
Energy Commission, the Controller to pay all awards of the money in
the accounts for certain renewable energy purposes.  Existing law
requires the Energy Commission to report to the Legislature on the
implementation of these provisions on a quarterly basis.
   This bill instead would require the Energy Commission to report to
the Legislature on the implementation of the Renewable Resource
Trust Fund on an annual basis.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 445 of the Public Utilities Code is amended to
read:
   445.  (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
   (b) The following accounts are hereby created within the Renewable
Resource Trust Fund:
   (1) The Existing Renewable Resources Account.
   (2) New Renewable Resources Account.
   (3) Emerging Renewable Resources Account.
   (4) Customer-Credit Renewable Resource Purchases Account.
   (5) Renewable Resources Consumer Education Account.
   (c) The money in the fund may be expended for the state's
administration of this article only upon appropriation by the
Legislature in the annual Budget Act.
   (d) Notwithstanding Section 383, that portion of revenues
collected by electrical corporations for the benefit of in-state
operation and development of existing and new and emerging renewable
resource technologies, pursuant to paragraphs (3) and (6) of
subdivision (c) of Section 381, shall be transmitted to the State
Energy Resources Conservation and Development Commission (hereafter
the Energy Commission) at least quarterly for deposit in the
Renewable Resource Trust Fund.  After setting aside in the fund money
that may be needed for expenditures authorized by the annual Budget
Act in accordance with subdivision (c), the Treasurer shall
immediately deposit money received pursuant to this section into the
accounts created pursuant to subdivision (b) in proportions
designated by the Energy Commission for the current calendar year.
Notwithstanding Section 13340 of the Government Code, the money in
the fund and the accounts within the fund are hereby continuously
appropriated to the Energy Commission without regard to fiscal year
for the purposes enumerated in Section 383.5.
   (e) Upon notification by the Energy Commission, the Controller
shall pay all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in Section 383.5.  The
eligibility of each award shall be determined solely by the Energy
Commission based on the procedures it adopts under subdivision (h) of
Section 383.5.  Based on the eligibility of each award, the Energy
Commission shall also establish the need for a multiyear commitment
to any particular award and so advise the Department of Finance.
Eligible awards submitted by the Energy Commission to the Controller
shall be accompanied by information specifying the account from which
payment should be made and the amount of each payment; a summary
description of how payment of the award furthers the purposes
enumerated in Section 383.5; and an accounting of future costs
associated with any award or group of awards known to the Energy
Commission to represent a portion of a multiyear funding commitment.

   (f) The Energy Commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.  The Energy Commission shall examine the cashflow in the
respective accounts on an annual basis, and shall annually prepare
and submit to the Legislature a report that describes the status of
account transfers and repayments.
   (g) The Energy Commission shall, on  a quarterly 
 an annual  basis, report to the Legislature on the
implementation of this article.  Those  quarterly 
 annual  reports shall be submitted to the Legislature not
more than 30 days after the close of  each quarter 
 the fiscal year  and shall include information describing
the awards submitted to the Controller for payment pursuant to this
article, the cumulative commitment of claims by account, the relative
demand for funds by account, a forecast of future awards, and other
matters the Energy Commission determines may be of importance to the
Legislature.
   (h) The Department of Finance, commencing March 1, 1999, shall
conduct an independent audit of the Renewable Resource Trust Fund and
its related accounts annually, and provide an audit report to the
Legislature not later than March 1 of each year for which this
article is operative.  The Department of Finance's report shall
include information regarding revenues, payment of awards, reserves
held for future commitments, unencumbered cash balances, and other
matters that the Director of Finance determines may be of importance
to the Legislature.