BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1194|
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THIRD READING
Bill No: SB 1194
Author: Sher (D)
Amended: 4/20/99
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE : 8-0, 4/13/99
AYES: Bowen, Baca, Brulte, Kelley, Mountjoy, Peace, Solis,
Speier
NOT VOTING: Alarcon, Hughes, Vasconcellos
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Electrical restructuring: public benefit
programs
SOURCE : California Public Utilities Commission
DIGEST : This bill requires the California Public
Utilities Commission to study the feasibility of
administering specified energy efficiency and conservation
activities through a non-profit public benefit corporation.
ANALYSIS : AB 1890 (Brulte), Chapter 854, Statutes of
1996, required utilities to fund 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 is "cost-effective energy
efficiency and conservation activities," for which the
three investor-owned utilities are required to collect and
spend a total of $840 million over the four-year period.
CONTINUED
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This funding was intended to ensure that low income and
energy efficiency programs continued (at least in the short
term) in the restructured electric industry. In order to
provide oversight of these programs, the California Public
Utilities Commission (CPUC) established the Low Income
Governing Board (LIGB) and the California Board for Energy
Efficiency (CBEE).
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
proposed to place the administration of the programs under
the administration of independent bodies, the LIGB and
CBEE. The proposed independent administration of these
programs (i.e., outside of state government and civil
service requirements) prompted labor interests to intervene
and challenge the CPUC's proposal. The challenge led to a
State Personnel Board ruling rejecting the CPUC's creation
of the LIGB and CBEE as independent bodies.
In response to the ruling and to provide for continuing
administration of the programs, the CPUC placed the program
under utility administration through 2002. Beyond 2002,
the CPUC indicated a preference for legislative creation of
a non-profit organization to administer the programs, to
the extent that future funding for the programs is
authorized.
This bill requires CPUC to study the feasibility of
administering those activities through a nonprofit public
benefit corporation.
Comments
According to the sponsor, the CPUC, this bill is intended
to codify the CPUC's decision and recognize the need for
legislative and CPUC action to implement ongoing
administration. Apparently, because the statutory fate of
these programs beyond 2001 remains uncertain, the CPUC is
not comfortable providing for long-term administration
without some direction from the Legislature.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 5/7/99)
California Public Utilities Commission (source)
NC:cm 5/10/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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