BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           183 (Sher)
          
          Hearing Date:  5/19/03          Amended: 5/7/03        
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          7-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:   SB 183 (1) eliminates the requirement that  
          the California Energy Commission (CEC) obtain legislative  
          approval before spending moneys collected and deposited in  
          the Renewable Resource Trust Fund between January 1, 2007  
          and January 1, 2012 for renewable energy programs, an  
          estimated $675 million, and (2) makes a number of other  
          changes to the Renewable Energy Program (REP), administered  
          by the CEC.  

                              Fiscal Impact (in thousands)
           Major Provisions                 2003-04           2004-05              
           2005-06               Fund  
          
          CEC publication          No increased costs                           
                    General    
                          

          STAFF COMMENTS:  The REP was established in 1998 and  
          supports existing, new, and emerging renewables by  
          providing production incentives, buydowns, rebates, and  
          consumer education. 

          The bill also:  
          
           requires the CEC to publish information about funding  
            availability in the Emerging Renewable Resources Account  
            (ERRA); 
           moves numerous sections of the Public Utilities Code to  
            the Public Resources Code, relating to the funding of  
            in-state renewable resources;
           eliminates the CEC's authority to grant awards for new  
            renewable electricity generation technologies to  
            out-of-state facilities. 

          The ERRA presently has a balance of $105 million.  As this  
          information is currently available on the CEC's website,  
          there are no increased costs associated with the  










          publication requirement. 

          Presumably, eliminating the CEC's authority to award funds  
          to out-of-state facilities would result in more funding for  
          in-state facilities.  Apparently only one out-of-state  
          facility has received funding and it provides energy to  
          California. Any funding shift would probably be  
          insignificant. 

          ERRA revenues are derived from the public goods surcharge  
          imposed on all utility bills; the surcharge sunsets in  
          2012.  Approximately $135 million is collected each year  
          and used for various programs.