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  
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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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