BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 168
                                                                  Page  1

          Date of Hearing:   July 16, 2003

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

            SB 168 (Energy, Utilities, and Communications Committee) - As  
                              Amended:  June 19, 2003 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            13-0 (Consent)
                        Natural Resources                     11-0  
          (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill makes a number of technical changes to the Public  
          Utilities Code and the Public Resources Code and appropriates  
          state funds to pay prior year claims of telephone corporations.   
          Specifically, this bill:

          1)Eliminates requirements that the California Energy Commission  
            (CEC) file four quarterly reports, an annual report and an  
            biennial report on the Renewable Energy Program and instead  
            consolidates these reports into one annual report. 

          2)Extends from March 31, 2003, to September 30, 2003 the due  
            date for a CEC report regarding the feasibility of  
            implementing a real-time metering program and modifies that  
            report's contents. 

          3)Appropriates the following amounts to the Public Utilities  
            Commission for paying 2001-02 claims of telephone  
            corporations:  

             a)   $40 million from the High Cost Fund-B Administrative  
               Committee Fund for providing services in high cost rural  
               and small metropolitan areas. 

             b)   $6 million from the Universal Lifeline Telephone Service  
               Trust Administrative Committee Fund for providing  
               discounted residential telephone services to eligible  
               customers. 








                                                                  SB 168
                                                                  Page  2

           
          FISCAL EFFECT  

          1)Minor savings to the CEC.

          2)One-time special fund appropriations of $40 million and $6  
            million, respectively.

           COMMENTS  

           1)Purpose  .  This is an annual omnibus code clean-up bill that  
            corrects several incorrect cross references, expands the  
            potential membership of an advisory board for the Public  
            Interest Energy Research Program, and consolidates number of  
            reports CEC is required to file with the Legislature.  The  
            bill includes appropriations 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. 

           2)Related Legislation  .  AB 1457 (Assembly Utilities and Commerce  
            Committee), pending in the Senate Appropriations Committee,  
            appropriates $2.5 million from the California High Cost Fund-A  
            Administrative Committee Fund to reimburse small independent  
            telephone corporations serving rural and small metropolitan  
            areas for unpaid claims from June 2002.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081