BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 183|
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THIRD READING
Bill No: SB 183
Author: Sher (D)
Amended: 5/7/03
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 4/22/03
AYES: Bowen, Morrow, Alarcon, Battin, Dunn, Murray, Sher
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/19/03
AYES: Alpert, Battin, Aanestad, Bowen, Escutia, Karnette,
Machado, Murray, Poochigian, Speier
SUBJECT : Energy: renewable technologies
SOURCE : Author
DIGEST : This bill (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.
ANALYSIS : AB 1890 (Brulte), Chapter 854, Statutes of
1996, required ratepayers to fund a variety of system
reliability, in-state benefit and low-income customer
programs at specified levels from 1998 through 2001. This
funding was intended to ensure that these "public goods"
programs continued (at least in the short term) in the
CONTINUED
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restructured electric industry.
Among the public goods programs are in-state operation and
development of existing, new, and emerging renewable energy
sources. Prior to awarding any of the money collected from
ratepayers, the CEC was required to submit a report to the
Legislature describing the programs it would support and
the levels of support those programs would receive. This
original CEC investment plan was codified by SB 90 (Sher),
Chapter 905, Statutes of 1997.
SB 1194 (Sher), Chapter 1050, Statutes of 2000, extended
the collection of a public goods charge from ratepayers
until 2012 and again required the CEC to develop investment
plans for renewable energy and public interest research,
development, and demonstration. The second CEC investment
plan, covering 2002-2007, was codified by SB 1038 (Sher),
Chapter 515, Statutes of 2002. Utility ratepayers
contribute $135 million annually to the renewable energy
program.
This bill:
1. Requires the CEC to publish information on available
funds in the Emerging Renewable Resources Account.
2. Moves numerous sections of the Public Utilities Code to
the Public Resources Code, relating to the funding of
in-state renewable resources.
3. Eliminates the CEC's discretion to make awards to
out-of-state renewable resources and requires biomass
facilities to report their fuel mixes to the CEC to be
eligible for awards.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The Emerging Renewable Resources Account (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.
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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.
SUPPORT : (Verified 5/19/03)
AMECO
EcoEnergies
Light Energy Systems
Performance Solar Inc.
POCO Solar Energy
Shell Solar
Six Rivers Solar, Inc.
SoCal Solar Energy
Southern California Edison
NC:sl 5/21/03 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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