BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1393|
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THIRD READING
Bill No: AB 1393
Author: Wright (D)
Amended: 9/3/99 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 9-2, 6/22/99
AYES: Bowen, Alarcon, Baca, Hughes, Kelley, Peace, Solis,
Speier, Vasconcellos
NOES: Brulte, Mountjoy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 61-17, 6/1/99 - See last page for vote
SUBJECT : Low-income electric and gas customers
SOURCE : Author
DIGEST : This bill provides for continued utility
administration of energy efficiency programs targeted to
low-income gas and electricity customers, and specifies
quality of service factors to be used as bidding criteria
for contracts funded under these programs.
Senate Floor Amendments of 9/3/99 create additional bid
evaluation criteria and state legislative intent.
ANALYSIS : AB 1890 (Brulte), Chapter 854, Statutes of
1996, required low-income energy assistance programs for
electricity customers to be continuously funded at not less
than 1996 levels, subject to a California Public Utilities
CONTINUED
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Commission (CPUC) assessment of customer need. Funds for
these, and similar low-income programs for gas customers,
are collected through a surcharge on gas and electric
utility bills. Current funding for these programs is about
$180 million per year for all utilities.
The programs include CARE, a 15% rate discount, and
targeted energy efficiency services, such as weatherization
to improve the energy efficiency of low-income homes. The
programs are currently administered by the utilities,
although on-the-ground delivery of the energy efficiency
services is often contracted out to community-based
organizations.
Prior to AB 1890, the CPUC required utilities to administer
the various services provided by these programs as part of
their regulated service. In the wake of AB 1890, the CPUC
established the Low Income Governing Board (LIGB) to
oversee the administration of these programs. The intent
was for the LIGB to preside over the transfer of the
programs to an independent administrator who would be
accountable to the LIGB. The proposed independent
administration of these programs, i.e. outside of state
government and civil service requirements, prompted the
California State Employees Association to intervene and
challenge the CPUC's proposal at the State Personnel Board
(SPB). The challenge led to a SPB ruling rejecting the
CPUC's creation of the LIGB as independent bodies.
In response to the ruling and to provide for continuing
administration of these and other energy efficiency and
conservation programs, the CPUC placed the programs under
utility administration through 2001. This bill would
permanently place the administration of energy assistance
programs for low-income customers with the utilities.
This bill requires certain low-income energy assistance
programs to be administered by the electric and gas
utilities that participate in the California Alternative
Rates for Energy (CARE) program (Pacific Gas & Electric,
Southern California Edison, Southern California Gas and San
Diego Gas & Electric companies).
The bill further establishes specific factors to be
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included in the bidding criteria for any low-income energy
assistance services contracted out by the utilities. The
factors include the bidder's experience in delivering
programs and services to and ability to reach targeted
communities, ability to utilize, employ and provide job
training to local people, the bidder's standing with the
Contractors' State License Board, the bidder's performance
quality, the bidder's financial stability, and other
attributes that benefit local communities. The CPUC is
authorized to modify these criteria based on public input.
The bill also articulates legislative intent to strengthen
the network of community service providers who bid to offer
these programs by evaluating the programs based on cost
criteria and program accessibility.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Unable to verify at time of writing)
Office of Ratepayer Advocates
PG&E
Sempra Energy
ASSEMBLY FLOOR :
AYES: Aanestad, Alquist, Aroner, Bock, Calderon, Campbell,
Cardenas, Cardoza, Corbett, Correa, Cox, Cunneen, Davis,
Dickerson, Ducheny, Dutra, Firebaugh, Florez, Floyd,
Frusetta, Gallegos, Granlund, Havice, Hertzberg, Honda,
Jackson, Keeley, Knox, Kuehl, Leach, Lempert, Longville,
Lowenthal, Machado, Maddox, Maldonado, Mazzoni, Migden,
Nakano, Oller, Rod Pacheco, Papan, Pescetti, Reyes,
Romero, Scott, Shelley, Soto, Steinberg, Strickland,
Strom-Martin, Thomson, Torlakson, Vincent, Washington,
Wayne, Wesson, Wiggins, Wildman, Wright, Villaraigosa
NOES: Ackerman, Ashburn, Baldwin, Bates, Battin, Baugh,
Briggs, House, Kaloogian, Leonard, Margett, McClintock,
Olberg, Robert Pacheco, Runner, Thompson, Zettel
NOT VOTING: Brewer, Cedillo
NC:cm 9/5/99 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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