BILL NUMBER: AB 1393 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 24, 1999
AMENDED IN ASSEMBLY APRIL 15, 1999
INTRODUCED BY Assembly Member Wright
FEBRUARY 26, 1999
An act to amend Sections 381 and 382 382
and 2790 of, and to add Section 381.5
327 to, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1393, as amended, R. Wright. Electrical
restructuring: programs: funding Low-income electric
and gas customers .
(1) Existing law requires the Public Utilities Commission to
establish a program of assistance to low-income electric and gas
customers, which is referred to as the California Alternate Rates for
Energy or CARE program.
This bill would require the electric and gas corporations that
participate in the CARE program to administer low-income energy
efficiency and rate assistance programs as described. The bill would
require the administrators of the program to undertake certain
functions and would allow the commission to require these
participating corporations to competitively bid, to the extent
practical, service delivery components of these programs. The bill
would require the bidding criteria to recognize specified factors,
subject to commission modification. The bill would make conforming
changes.
Because a violation of the Public Utilities Act is a crime, this
bill would impose a state-mandated local program by creating new
crimes.
(2) Existing law requires the commission to require an electric or
gas corporation to perform home weatherization services, as defined,
for low-income customers, as determined by the commission.
This bill would revise the definition of "weatherization."
(1) The Public Utilities Act requires specified electrical
corporations to allow customers to make voluntary contributions
through their utility bill payments as either a fixed amount or a
variable amount to support programs established for the in-state
operation and development of existing and new and emerging renewable
resource technologies, as described. The act requires the Public
Utilities Commission to order certain electrical corporations to
collect and spend funds for, among other purposes, cost-effective
energy efficiency and conservation activities, in accordance with a
prescribed schedule. The act requires programs provided to
low-income electricity customers, including, but not limited to,
targeted energy-efficiency services and the California Alternative
Rates for Energy Program to be funded at not less than 1996
authorized levels based on an assessment of customer need, and
requires the commission to allocate funds necessary to meet those
low-income objectives.
This bill would require those specified electrical corporations to
also allow customers to make those voluntary contributions described
above to support programs established for cost-effective energy
efficiency and conservation activities. The bill would require the
commission to allocate the funds collected to support those programs
in accordance with administration and expenditure criteria, upon the
establishment of those criteria by the Legislature. The bill would
require the commission to order those certain electrical corporations
required to collect and spend funds for cost-effective energy
efficiency and conservation activities to allocate 35% of those to
cost-effective energy efficiency and conservation activities that
affect residential energy use. The bill would require the commission
to order the electrical corporations to collect and expend funds for
targeted energy efficiency programs for low-income electricity
customers in accordance with a prescribed schedule. The bill would
require the commission, with respect to those low-income objectives,
to require the collection and allocation of funds necessary to meet
the objectives.
The bill would require the commission to order certain electrical
corporations, on and after January 1, 2002, to collect a specified
fee to support cost-effective energy efficiency and conservation
activities. Because a violation of the act is a crime, this bill
would impose state-mandated local programs by creating new crimes.
(2)
(3) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 381 of the Public Utilities Code
SECTION 1. Section 327 is added to the Public Utilities Code, to
read:
327. (a) The electric and gas corporations that participate in
the California Alternative Rates for Energy program, as established
pursuant to Section 739.1, shall administer low-income energy
efficiency and rate assistance programs described in Sections 739.1,
739.2, and 2790. In administering these programs the electric and
gas corporations, to the extent practical, shall do all of the
following:
(1) Continue to leverage funds described in subdivision (a) with
funds available from state and federal sources.
(2) Work with state and local agencies and with community-based
organizations to ensure efficient and effective delivery of programs.
(3) Encourage local employment and job skill development.
(4) Maximize the participation of eligible participants.
(5) Work to reduce consumers electric and gas consumption, and
bills.
(b) The commission may require the electric and gas corporations
described in subdivision (a) to competitively bid, to the extent
practical, service delivery components of these programs. The
bidding criteria, at a minimum, shall recognize all of the following
factors:
(1) The bidder's experience in delivering programs and services,
including, but not limited to, weatherization, appliance repair and
maintenance, energy education, outreach and enrollment services, and
bill payment assistance programs to targeted communities.
(2) The bidder's knowledge of the targeted communities.
(3) The bidder's ability to reach targeted communities.
(4) The bidder's ability to utilize and employ people from the
local area.
(5) The bidder's ability to provide local job training.
(6) Other attributes that benefit local communities.
(c) Notwithstanding subdivision (b), the commission may modify its
bid criteria based upon public input from a variety of sources,
including representatives from low-income communities and the program
administrators identified in subdivision (b), in order to ensure the
effective and efficient delivery of high quality low-income energy
efficiency programs.
SEC. 2. Section 382 of the Public Utilities Code is amended to
read:
382. (a) Programs provided to low-income electricity
customers, including, but not limited to, targeted energy-efficiency
services and the California Alternative Rates for Energy
Program program shall be funded at not less than
1996 authorized levels based on an assessment of customer need. The
commission shall allocate funds necessary to meet the low-income
objectives in this section.
(b) The electric and gas corporations that participate in the
California Alternative Rates for Energy program shall administer the
programs described in subdivision (a). In administering these
programs, the electric and gas corporations, to the extent practical,
shall do all of the following:
(1) Continue to leverage funds described in subdivision (a) with
funds available from state and federal sources.
(2) Work with state and local agencies and with community-based
organizations to ensure efficient and effective delivery programs.
(3) Encourage local employment and job skill development.
(4) Maximize the participation of eligible participants.
(5) Work to reduce consumers electric and gas consumption, and
bills.
(c) The commission may require the electric and gas corporations
described in subdivision (b) to competitively bid, to the extent
practical, service delivery components of these programs. The
bidding criteria, at a minimum, shall recognize all of the following
factors:
(1) The bidder's experience in delivering programs and services,
including, but not limited to, weatherization, appliance repair and
maintenance, energy education, outreach and enrollment services, and
bill payment assistance programs to targeted communities.
(2) The bidder's knowledge of the targeted communities.
(3) The bidder's ability to reach targeted communities.
(4) The bidder's ability to utilize and employ people from the
local area.
(5) The bidder's ability to provide local job training.
(6) Other attributes that benefit local communities.
(d) Notwithstanding subdivision (c), the commission may modify its
bid criteria based upon public input from a variety of sources,
including representatives from low-income communities and the program
administrators identified in subdivision (b) in order to ensure the
effective and efficient delivery of high quality low-income energy
efficiency programs.
SEC. 3. Section 2790 of the Public Utilities Code is amended to
read:
2790. (a) The commission shall require an electrical or gas
corporation to perform home weatherization services for low-income
customers, as determined by the commission under Section 739, if the
commission determines that a significant need for those services
exists in the corporation's service territory, taking into
consideration both the cost effectiveness of the services and the
policy of reducing the hardships facing low-income households.
(b) (1) For purposes of this section, "weatherization"
includes may include , where feasible, any of
the following measures for any dwelling unit:
(A) Attic insulation.
(B) Caulking.
(C) Weatherstripping.
(D) Low flow showerhead.
(E) Waterheater blanket.
(F) Door and building envelope repairs which
that reduce air infiltration.
(2) The commission shall direct any electrical or gas corporation
to provide as many of these measures as are feasible for each
eligible low-income dwelling unit.
(c) "Weatherization" may also include other building conservation
measures, energy-efficient appliances, and energy education programs
determined by the commission to be feasible, taking into
consideration for all measures both the cost effectiveness
of the measures as a group and the policy of reducing the
hardships facing low-income households. is amended to
read:
381. (a) To ensure that the funding for the programs described in
subdivision (b) and Section 382 is not commingled with other
revenues, the commission shall require each electrical corporation to
identify a separate rate component to collect the revenues used to
fund these programs. The rate component shall be a nonbypassable
element of the local distribution service and collected on the basis
of usage. On or before January 1, 2002, this rate component shall
fall within the rate levels identified in subdivision (a) of Section
368.
(b) The commission shall allocate funds collected pursuant to
subdivision (a), and any interest earned on collected funds, to
programs which enhance system reliability and provide in-state
benefits as follows:
(1) Cost-effective energy efficiency and conservation activities.
(2) Public interest research and development not adequately
provided by competitive and regulated markets.
(3) In-state operation and development of existing and new and
emerging renewable resource technologies defined as electricity
produced from other than a conventional power source within the
meaning of Section 2805, provided that a power source utilizing more
than 25 percent fossil fuel may not be included.
(c) The Public Utilities Commission shall order the respective
electrical corporations to collect and spend these funds, as follows:
(1) Cost-effective energy efficiency and conservation activities
shall be funded at not less than the following levels commencing
January 1, 1998, through December 31, 2001: for San Diego Gas and
Electric Company a level of thirty-two million dollars ($32,000,000)
per year; for Southern California Edison Company a level of ninety
million dollars ($90,000,000) for each of the years l998, 1999, and
2000; fifty million dollars ($50,000,000) for the year 2001; and for
Pacific Gas and Electric Company a level of one hundred six million
dollars ($106,000,000) per year. The commission shall order the
respective electrical corporations, on and after January 1, 2002, to
collect a surcharge of 1.5 mills ($0.0015) per kilowatt hour to
support cost-effective energy efficiency and conservation activities.
(2) Research, development, and demonstration programs to advance
science or technology that are not adequately provided by competitive
and regulated markets shall be funded at not less than the following
levels commencing January 1, 1998, through December 31, 2001: for
San Diego Gas and Electric Company a level of four million dollars
($4,000,000) per year; for Southern California Edison Company a level
of twenty-eight million five hundred thousand dollars ($28,500,000)
per year; and for Pacific Gas and Electric Company a level of thirty
million dollars ($30,000,000) per year.
(3) In-state operation and development of existing and new and
emerging renewable resource technologies shall be funded at not less
than the following levels on a statewide basis: one hundred nine
million five hundred thousand dollars ($109,500,000) per year for
each of the years 1998, 1999, and 2000, and one hundred thirty-six
million five hundred thousand dollars ($136,500,000) for the year
2001. To accomplish these funding levels over the period described
herein the San Diego Gas and Electric Company shall spend twelve
million dollars ($12,000,000) per year, the Southern California
Edison Company shall expend no less than forty-nine million five
hundred thousand dollars ($49,500,000) for the years 1998, 1999, and
2000, and no less than seventy-six million five hundred thousand
dollars ($76,500,000) for the year 2001, and the Pacific Gas and
Electric Company shall expend no less than forty-eight million
dollars ($48,000,000) per year through the year 2001. Additional
funding not to exceed seventy-five million dollars ($75,000,000)
shall be allocated from moneys collected pursuant to subdivision (d)
in order to provide a level of funding totaling five hundred forty
million dollars ($540,000,000).
(4) Up to fifty million dollars ($50,000,000) of the amount
collected pursuant to subdivision (d) may be used to resolve
outstanding issues related to implementation of subdivision (a) of
Section 374. Moneys remaining after fully funding the provisions of
this paragraph shall be reallocated for purposes of paragraph (3).
(5) Up to ninety million dollars ($90,000,000) of the amount
collected pursuant to subdivision (d) may be used to resolve
outstanding issues related to contractual arrangements in the
Southern California Edison service territory stemming from the
Biennial Resource Planning Update auction. Moneys remaining after
fully funding the provisions of this paragraph shall be reallocated
for purposes of paragraph (3).
(d) Notwithstanding any other provisions of this chapter, entities
subject to the jurisdiction of the Public Utilities Commission shall
extend the period for competition transition charge collection up to
three months beyond its otherwise applicable termination of December
31, 2001, so as to ensure that the aggregate portion of the
research, environmental, and low-income funds allocated to renewable
resources shall equal five hundred forty million dollars
($540,000,000) and that the costs specified in paragraphs (3), (4),
and (5) of subdivision (c) are collected.
(e) Each electrical corporation shall allow customers to make
voluntary contributions through their utility bill payments as either
a fixed amount or a variable amount to support programs established
pursuant to paragraphs (1) and (3) of subdivision (b). Funds
collected by electrical corporations for these purposes shall be
forwarded in a timely manner to the appropriate fund as specified by
the commission.
(f) The commission shall allocate the funds collected for the
purposes of paragraph (1) of subdivision (b) in accordance with
administration and expenditure criteria, upon the establishment of
those criteria by the Legislature.
(g) The commission shall determine how to utilize funds for
purposes of paragraph (2) of subdivision (b), provided that only
those research and development funds for transmission and
distribution functions shall remain with the regulated public
utilities under the supervision of the commission. The commission
shall provide for the transfer of all research and development funds
collected for purposes of paragraph (2) of subdivision (b) other than
those for transmission and distribution functions and funds
collected for purposes of paragraph (3) of subdivision (b) to the
California Energy Resources Conservation and Development Commission
pursuant to administration and expenditure criteria to be established
by the Legislature.
(h) The commission's authority to collect funds pursuant to this
section for purposes of paragraph (3) of subdivision (b) shall become
inoperative on March 31, 2002.
(i) For purposes of this article, "emerging renewable technology"
means a new renewable technology, including, but not limited to,
photovoltaic technology, that is determined by the California Energy
Resources Conservation and Development Commission to be emerging from
research and development and that has significant commercial
potential.
SEC. 2. Section 381.5 is added to the Public Utilities Code, to
read:
381.5. It is the intent of the Legislature that both of the
following requirements should be met:
(a) That funds identified in paragraph (1) of subdivision (c) of
Section 381 be allocated equitably among classes and subclasses of
electric customers in approximate proportion to the amounts each
group pays to the surcharge fund.
(b) Notwithstanding subdivision (a), that special emphasis be
placed on programs to reduce electricity bills of customer groups
that have been historically underserved by energy efficiency or
conservation programs operated by the investor-owned utilities,
including small businesses, schools, owners and tenants of
multifamily residential buildings, owners and tenants of mobilehome
parks, tribes, persons with limited English skills, and other
customer groups identified as hard-to-reach. Funds for energy
efficiency and conservation should also be used to stimulate the
growth of a competitive industry providing cost-effective products
and services and to improve the acquisition and use of
energy-efficient appliances and equipment by consumers.
SEC. 3. Section 382 of the Public Utilities Code is amended to
read:
382. Programs provided to low-income electricity customers,
including, but not limited to, targeted energy-efficiency services
and the California Alternative Rates for Energy Program shall be
funded at not less than 1996 authorized levels based on an assessment
of customer need. The commission shall require the collection and
allocation of funds necessary to meet the low-income objectives in
this section.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.