BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 183| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 183 Page 2 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. SB 183 Page 3 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 **** END ****