BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
                                              AB 995 (Wright)
          Hearing Date:  8/7/00                       Amended: 8/7/00
          Consultant:  Bob Franzoia      Policy Vote: E, U&C  9-1
          ____________________________________________________________ 
          ___
          BILL SUMMARY: AB 995, relating to public benefit programs  
          for electrical corporation utility users, would do the  
          following:
          1)Extend through 1/1/12 a requirement that electrical  
            utility corporations collect a public goods surcharge  
            from each customer to fund (1) energy efficiency, (2)  
            renewable energy sources, and (3) research and  
            development (R&D) of alternative energy supplies  
            programs.
          2)Require the funds to be deposited in specified accounts  
            until appropriation by the Legislature. 
          3)Require the corporations to collect specific dollar  
            amounts for each of the programs beginning 1/1/02.
          4)Require the Governor, by 1/1/04, to appoint an  
            independent review panel that would be required to report  
            to the Legislature and the California Energy Commission  
            (CEC) on the benefits secured for residential customers.
          5)Require the CEC to report on renewable energy and R&D,  
            develop and submit to the Legislature investment plans,  
            and recommend allocations among specified projects and  
            requires the Public Utilities Commission (PUC) to  
            continue administering the energy efficiency program.
          6)The bill would result in a change in state taxes for the  
            purpose of increasing state revenue within the meaning of  
            Section 3 of Article XIIIA of the California  
            Constitution, thus requiring a two-thirds vote.
          7)Propose substantial changes to statutes governing the  
            transmission and distribution of electric power that do  
            not have a direct fiscal impact.
                              Fiscal Impact (in thousands)
           Major Provisions                     2000-01       2001-02   2002-03         
               Fund  
          Program extension        (revenues to the listed programs)
          - Energy efficiency                               $228,000*
          - Renewable energy                  $62,500*
          - R&D                               $135,000*
                                                                 
          Admin (CEC)/(PUC)       Minor, absorbable costs   General**/ 
                                                            Special











          * The funding levels are adjusted each year to account for a growth  
          in electric commodity sales or inflation, whichever is less.       
          ** Energy Resources Programs Account/PUC Utilities Reimbursement  
          Account
          STAFF COMMENTS: This bill probably meets the criteria to be  
          placed on the Suspense file.  The state, which consumed a  
          minimum of 2.8 million megawatts of electricity in 1997-98,  
          will likely incur surcharge costs in excess of $150,000  
          annually.
          
          The PUC will incur minor costs to continue administering  
          the energy efficiency program and to provide assistance to  
          the independent review panel.  The CEC will have similar  
          costs to prepare the investment plans to determine the  
          expenditure of funds collected for the R&D and the  
          renewable energy programs.