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
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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.