BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1217|
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THIRD READING
Bill No: SB 1217
Author: Polanco (D)
Amended: 5/28/99
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-3, 5/11/99
AYES: Bowen, Alarcon, Baca, Hughes, Peace, Solis, Speier,
Vasconcellos
NOES: Brulte, Kelley, Mountjoy
SENATE APPROPRIATIONS COMMITTEE : 8-1, 5/24/99
AYES: Johnston, Alpert, Bowen, Burton, Escutia, Karnette,
Perata, Vasconcellos
NOES: Leslie
NOT VOTING: Johnson, Kelley, McPherson, Mountjoy
SUBJECT : Public Utilities Commission
SOURCE : Author
DIGEST : This bill codifies the existence of six Public
Utilities Commission advisory boards and makes related
changes. The bill also requires the Bureau of State Audits
to conduct a performance and financial audit of the
Department of Community Services and Development.
ANALYSIS :
Part 1:
Current law requires the California Public Utilities
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Commission (CPUC) to administer six telecommunications
programs, created pursuant to statute and paid for by
consumers via their telephone bills. The CPUC appoints
advisory boards to each of these programs to assist in the
administration.
This bill codifies the advisory boards for each of the six
programs and creates accounts in the state treasury to hold
the program funds.
Part 2:
Current law establishes programs to finance cost-effective
energy efficiency and conservation activities and low
income rate assistance which are funded by ratepayers and
administered by utility companies.
This bill requires the Bureau of State Audits to conduct a
performance and financial audit of the Department of
Community Services and Development (Department) to consider
the efficiency of the Department's administration of
federal low income energy assistance programs. A report is
to be presented to the chairs of specified legislative
committees by July 1, 2000.
This bill requires the California Public Utilities
Commission (CPUC), if it elects to competitively bid the
state's low income energy assistance program, to evaluate
the bids based on cost and quality criteria. The quality
criteria shall include whether the bidder has experience
and is effective at doing similar work, has knowledge of
the targeted communities, and has an ability to reach
targeted communities.
Comments :
Part 1:
The CPUC has implemented six statutorily authorized
programs, funded by utility customers, whose aggregate
revenues exceed $1 billion annually. The funds are held in
trust. According to the CPUC, both the Attorney General
and the Department of Finance have informally expressed
their preference that the funding for these programs be
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kept with the state and that the advisory boards be
codified.
The specific advisory boards and funds created by this bill
include:
1.The California High-Cost Fund-A Administrative Committee
and Fund, designed to keep rates for rural telephone
companies low.
2.The California High Cost Fund-B Administrative Committee
and Fund, designed to keep rates for rural customers low.
3.The Universal Lifeline Telephone Service Trust
Administrative Committee and Fund, designed to provide
low cost telephone service to low income households.
4.The Deaf and Disabled Telecommunications Program
Administrative Committee and Fund, designed to provide
discounted telephone service and equipment to the deaf
and disabled.
5.The Payphone Service Providers Committee and Fund,
designed to provide consumer protection to pay telephone
customers.
6.The California Teleconnect Fund Administrative Committee
and Fund, designed to fund advanced communications
services for schools, libraries, and community
organizations.
This portion of the bill simply formalizes the current
programs by codifying the CPUC-created advisory boards and
creates funds in the state treasury to hold the monies from
each program. This part of the bill is substantially
similar to AB 2461 (Campbell) of last year, which was
vetoed by the Governor because it provided for additional
civil service positions.
Part 2:
The remaining provisions of the bill deal with the
administration of the California Alternate Rates for Energy
program (CARE), a discount energy rate program for low
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income customers, and the Low Income Energy Efficiency
program (LIEE), an energy efficiency program for low income
customers. The CARE program costs $125 million annually and
provides eligible low income gas and electric customers
with a 15% credit against their bill. The LIEE program
costs $60 million annually and provides home weatherization
and energy efficiency devices, such as energy efficient
lighting, to qualifying customers, whether they are
property owners or renters. The LIEE programs are
contracted out to numerous community-based organizations
usually, but not exclusively, on a competitive-bid basis.
The bill requires that if the CPUC contracts out the LIEE
programs on a competitive-bid basis, the bid criteria shall
include quality of service criteria. The bill also
requires an audit of the Department to see if they would be
an appropriate entity for administering these programs in
the future.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Codification of advisory boards (cost shift) -- No new
program costs; all costs will continue to be paid from the
appropriate special funds.
Audit -- Unknown, less than $150,000 from the General Fund.
SUPPORT : (Verified 6/1/99)
ASCEEP
Bay Area Poverty Resource Council
California Department of Community Services and Development
Campesinos Unidos, Inc.
Community Enhancement Services
CPUC
Eddie Dillen Companies
MAAC Project
Maravilla Foundation
Pacific Asian Consortium in Employment
Pacific Bell
Riverside County Department of Community Action
San Bernardino County Community Services Department
Santa Barbara County Community Action Commission
Spectrum Community Services, Inc.
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Inter-City Energy Systems, Inc.
Ventura County Commission on Human Concerns & Community
Development
Veterans in Community Service, Inc.
OPPOSITION : (Verified 6/1/99))
World Institute for Disabilities
NC:jk 6/1/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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