BILL ANALYSIS
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THIRD READING
Bill No: SB 418
Author: Bowen (D)
Amended: 4/26/99
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-1, 5/11/99
AYES: Bowen, Alarcon, Baca, Brulte, Hughes, Mountjoy,
Solis, Speier
NOES: Kelley
NOT VOTING: Peace, Vasconcellos
SUBJECT : Electrical restructuring: funding of programs
SOURCE : Author
DIGEST : This bill makes a statement of the Legislature's
intent to provide for the future funding and administration
of energy-related public purpose programs and makes a
technical change to a related provision.
ANALYSIS : AB 1890 (Brulte), Chapter 854, Statutes of
1996, required utilities to devote a share of their
revenues to a variety of system reliability, in-state
benefit and low-income customer programs at specified
levels from 1998 through 2001. The largest set of programs
consists of "cost-effective energy efficiency and
conservation activities," for which the three
investor-owned utilities are required to collect and spend
a total of $872 million over the four-year period. Another
$250 million is designated for research, development and
demonstration to advance technologies that have public
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benefits but would not otherwise be developed by market
forces. Finally, a total of $540 million goes toward
operation and development of renewable energy sources,
divided among existing, new and emerging technologies. A
spending plan for the funds set aside for renewables was
subsequently developed by the California Energy Commission
and authorized by SB 90 (Sher), Chapter 905, Statutes of
1997.
The AB 1890 funding was intended to ensure that public
purpose energy programs continued (at least in the short
term) in the restructured electric industry. Prior to AB
1890, the California Public Utilities Commission (CPUC)
required utilities to administer the various services
provided by these programs as part of their regulated
service.
This bill contemplates extending the funding and providing
for the administration of these programs beyond 2001. The
author is awaiting evaluations of the public value and
cost-effectiveness of the programs prior to proposing
specific funding levels or mechanisms for any programs that
may deserve continued support.
Related legislation
AB 1393 (Wright), currently in the Assembly Appropriations
Committee, and SB 1194 (Sher), currently in the Senate
Appropriations Committee, both address the energy
efficiency and conservation portion of the public purpose
programs. AB 1393 continues funding for these activities
beyond 2001 by requiring utilities to collect a 1.5
mill/kwh surcharge. SB 1194 requires the CPUC to study
administration of the activities by a special purpose
non-profit corporation. SB 418 intends to address both
funding and administration of the full range of public
purpose programs currently funded through AB 1890.
However, to the extent that AB 1393 or SB 1194 address
funding and/or adminstration of energy efficiency and
conservation programs, SB 418 may not need to address those
specific issues.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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NC:sl 5/13/99 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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