BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 168
                                                                  Page  1

          Date of Hearing:  June 30, 2003

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                             Hannah-Beth Jackson, Chair
             SB 168 (Energy, Utilities and Communications) - As Amended:   
                                    June 19, 2003

           SENATE VOTE  :  39-0
           
          SUBJECT  :  Telecommunications: Renewable Resource Trust Fund.

           SUMMARY  :  This bill is the Senate Energy, Utilities and  
          Communications Committee annual clean up measure and contains a  
          number of technical and non-substantive changes to the codes.

           EXISTING LAW  :

          1)Requires the State Energy Resources Conservation and  
            Development Act (CEC) to certify a sufficient number of sites  
            and related facilities to provide a supply of electric power  
            sufficient to accommodate projected demand for power  
            statewide.

          2)Prohibits the CEC from certifying any power facility that does  
            not comply with applicable state, local, or regional  
            standards, ordinances, or laws, unless determined by the CEC.

          3)Authorizes the CEC to solicit applications for awards, using a  
            sealed competitive bid, competitive negotiation process,  
            multiparty agreement, single source, or sole source method.

          4)Requires the CEC to regularly convene an advisory board to  
            make recommendations guiding the CEC's selection of specified  
            programs and projects to be funded.

          5)Requires the CEC to report to the Legislature on the  
            implementation of the Renewable Resource Trust Fund and  
            funding mechanisms on a quarterly basis and on the funding  
            mechanisms every two years.

          6)Requires the CEC, in consultation with the Public Utilities  
            Commission (PUC), to submit a report to the Legislature on the  
            feasibility of implementing real-time metering by March 31,  
            2003.









                                                                  SB 168
                                                                  Page  2

          7)Requires the PUC to develop, implement, and maintain a  
            suitable program to establish a fair and equitable local rate  
            structure aided by transfer payments to small independent  
            telephone corporations serving high cost rural and small  
            metropolitan areas, in order to promote the goals of universal  
            telephone service.  

          8)Requires the PUC to transfer monies for this program into the  
            California High-Cost Fund-B Administrative Committee Fund,  
            upon appropriation in the annual Budget Act.

          9)Establishes the Universal lifeline Telephone Trust  
            Administrative Committee Fund, within the PUC, to meet minimum  
            residential communication needs.


           THIS BILL  :

          1)Expands the potential membership of a CEC advisory board to  
            include the Public Interest Research Program.

          2)Eliminates requirements that the CEC file four quarterly  
            reports, an annual report and a biennial report, on the  
            Renewable Resource Trust Fund and consolidates these reports  
            into one annual report to the Legislature.

          3)Extends, from March 31, 2003 to September 30, 2003, the due  
            date for a CEC report, as revised, regarding the feasibility  
            of implementing real-time metering.

          4)Appropriates $40,000,000 from the High Cost Fund A  
            Administrative Committee Fund to the PUC to pay for prior year  
            claims owed to telephone corporations providing services in  
            the high-cost rural and small metropolitan areas.

          5)Appropriates $6,000,000 from the Universal Lifeline Telephone  
            Service Trust Administrative Committee Fund to the PUC to pay  
            for prior year claims owed to telephone corporations providing  
            discounted residential telephone services to eligible  
            customers.

          6)Makes technical changes to correct cross-reference errors and  
            grammatical errors.

           FISCAL EFFECT :  According to the Senate Appropriations Committee  








                                                                  SB 168
                                                                  Page  3

          Analysis, the bill has minimal costs.

           COMMENTS  :  This bill is the annual omnibus clean up bill for the  
          Senate Energy, Utilities and Communications Committee.  The bill  
          contains only technical items that have no opposition and do not  
          present a major policy question.

          According to the Committee Chair's office, the bill corrects  
          several incorrect cross references, expands the potential  
          membership of a CEC advisory board for the Public Interest  
          Research Program, and consolidates a number of reports the CEC  
          is required to file with the Legislature into a single annual  
          report.  In addition, this bill contains an appropriation to pay  
          approved prior year claims owed to telephone corporations that  
          provide services under the High Cost Fund B program and the  
          Universal Lifeline Telephone Service program.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
            Opposition 
           
          None on file


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