BILL NUMBER: SB 1939 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2000
INTRODUCED BY Senator Alarcon
FEBRUARY 24, 2000
An act to amend Section 385 of, and to add Section 9607 to, the
Public Utilities Code, and to amend Section 22120 of the
Water Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1939, as amended, Alarcon. Public utilities: electric power.
(1) Existing law requires each local publicly owned utility to
establish a nonbypassable usage based charge to fund specified
public purpose programs, including providing services for
low-income electricity customers. The charge is required to be not
less than the lowest expenditure of the 3 largest electrical
corporations in California based on a percentage of revenue.
This bill would require that the nonbypassable usage based charge
that funds low-income electricity customers be based on the highest
expenditure level of the 3 largest electrical corporations in
California, as prescribed. The bill would require revenues that
are not used to fund specified public purpose investments during the
fiscal year in which those revenues were collected to be transferred
at the end of that fiscal year to a subaccount of the Energy
Resources Programs Account of the California Energy Resources
Conservation and Development Commission. The bill would require
revenues that are not used to fund low-income services during the
fiscal year in which those revenues were collected to be transferred
at the end of that fiscal year to a county energy low-income programs
fund in the county in which the revenues were collected. The bill
would require each county to establish and administer an energy
low-income programs fund for that purpose and to use energy
low-income program funds to provide grants for specified low-income
purposes, thereby imposing a state-mandated local program.
Because a violation of this provision would be a crime, this bill
would also impose a state-mandated local program by
creating a new crime.
This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIIIA of the California Constitution, and thus would require
for passage the approval of 2/3 of the membership of each house of
the Legislature.
(2) The Irrigation District Law authorizes an irrigation district
to be governed by a board of directors.
This bill would require the Public Utilities Commission to approve
the sale of electricity by an irrigation district in the service
area of specified entities. Prior to granting approval, the
commission would be required to make findings, as prescribed. The
commission would also require that the district meet specified
conditions prior to the commission granting approval of the sale of
electricity, as prescribed. Because this bill would increase the
duties of local entities by requiring them to obtain commission
approval and meet conditions in order to sell electricity, it would
impose a state-mandated local program.
(3) The Irrigation District Law authorizes an irrigation district
that is governed under that law to sell, dispose of, and distribute
electric power for use outside its boundaries.
This bill would provide that any income derived by a district from
the distribution of electric power outside the boundaries of a
district, and within the service territory of specified entities
shall be subject to tax as if it were income earned as unrelated
business taxable income by an exempt organization. The bill would
also provide that any facility that is constructed or acquired
outside the boundaries of a district, for the purposes of
distributing electric power outside its boundaries, and within the
service territory of specified entities is subject to property taxes.
The bill would require the construction or acquisition of that
facility to be financed without tax exempt financing or the issuance
of bonds.
(4) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 385 of the Public Utilities Code is amended to
read:
385. (a) Except as provided in subdivision (b), each local
publicly owned electric utility shall establish a nonbypassable,
usage based charge on local distribution service of not less than the
lowest expenditure level of the three largest electrical
corporations in California on a percent of revenue basis, calculated
from each utility's total revenue requirement for the year ended
December 31, 1994, and each utility's total annual expenditure under
paragraphs (1), (2), and (3) of subdivision (c) of Section 381 and
Section 382, to fund investments by the utility and other parties in
any or all of the following:
(1) Cost-effective demand-side management services to promote
energy-efficiency and energy conservation.
(2) New investment in renewable energy resources and technologies
consistent with existing statutes and regulations which promote those
resources and technologies.
(3) Research, development and demonstration programs for the
public interest to advance science or technology which is not
adequately provided by competitive and regulated markets.
(b) (1) Each local publicly owned electric utility shall establish
a nonbypassable, usage based charge on local distribution service of
not less than the highest expenditure level of the three largest
electrical corporations in California for low-income programs
based on the greater of the of the following:
(A) A percent of revenue basis, calculated from the utility's
total revenue requirement during the two years prior to the year
ending on December 31, 2000.
(B) A percent of revenue basis, calculated from the utility's
total revenue requirement during the year ended December 31, 1996.
, calculated on a percent of revenue basis, using the
utility's total revenue requirement in the highest low-income program
expenditure year during the period from 1996 through 2000.
(2) The nonbypassable charge set forth in subdivision (a) shall be
used to fund services for low-income electricity customers,
including, but not limited to, targeted energy efficiency services
and rate discounts.
(c) (1) Revenues collected pursuant to subdivision (a) that are
not used to fund the investments described in subdivision (a) during
the fiscal year in which those revenues were collected, shall be
transferred at the end of that fiscal year to the subaccount of the
Energy Resources Programs Account of the California Energy Resources
Conservation and Development Commission created pursuant to
subdivision (a) of Section 383.
(2) Revenues collected pursuant to subdivision (b) that are not
used to fund the services described in subdivision (b) during the
fiscal year in which those revenues were collected, shall be
transferred at the end of that fiscal year to an energy low-income
programs fund in the county in which the revenues were collected,
which fund shall be established and administered by the county. A
county shall use energy low-income program funds to provide grants to
local agencies and nonprofit community-based organizations to
provide targeted energy efficiency programs or electricity bill
payment assistance to low-income electricity customers residing in
the county and to pay the county's administrative costs related to
the fund.
SEC. 2. Section 9607 is added to the Public Utilities Code, to
read:
9607. (a) Notwithstanding Section 9604, for purposes of this
section, "district" means an irrigation district furnishing electric
services formed pursuant to the Irrigation District Law as set forth
in Division 11 (commencing with Section 20500) of the Water Code.
(b) Notwithstanding any other provision of law, a district may not
construct, lease, acquire, or operate facilities for the
distribution of electricity in the service territory of an electrical
corporation providing electric distribution services as that
territory existed on January 1, 2000, or in the service territory of
a local publicly owned electric utility providing electric
distribution services as of January 1, 2000, without the approval of
the commission.
(c) The commission may not approve the request of a district to
provide distribution of electricity in the service territory of an
entity as set forth in subdivision (a) unless the commission
determines all of the following:
(1) Service by the district within the service territory is in the
public interest.
(2) Service by the district within the service territory is
consistent with the policies of the state to prevent or eliminate
economic waste.
(3) Service by the district within the service territory does not
adversely impact the ability of the electrical corporation or local
publicly owned electric utility to provide adequate service at
reasonable rates within the remainder of its service area
territory .
(4) Service by the district within the service territory
does not reduce in value or render useless any facilities previously
constructed by the electrical corporation or local publicly owned
electric utility. does not shift costs to other
customers, investors, or taxpayers of the entity currently providing
distribution service.
(5) The district has established and funded public purpose and
low-income programs in accordance with subdivisions (a) and (b) of
Section 385.
(d) The commission shall require, as conditions to approval for a
district to provide electric service within the service territory of
an electrical corporation or local publicly owned electric utility,
all of the following:
(1) The district shall adopt line extension rules comparable to
those in place within the territory to be served.
(2) The district shall provide universal service to all customers
who request service at the published tariff rates within the
territory to be served.
(3) The district shall adopt consumer protection and direct
transaction provisions comparable to those established by the
Public Utilities Commission for electrical corporations.
(4) The district shall transmit the nonbypassable public purpose
and low-income charges collected from a customer in the territory
pursuant to Section 385 to the utility that provided electric
distribution service to the customer immediately prior to approval
pursuant to this section.
SEC. 3. Section 22120 of the Water Code is amended to read:
22120. (a) Except as provided in Section 9607 of the Public
Utilities Code, a district may sell, dispose of, and distribute
electric power for use outside of its boundaries.
(b) Any income derived by a district from the distribution of
electric power outside the boundaries of a district, and within the
service territory of an electrical corporation as that territory
existed on January 1, 2000, shall be subject to tax as if it were
income earned as unrelated business taxable income by an exempt
organization.
(c) (1) Any facility that is constructed or acquired outside the
boundaries of a district, for the purposes of distributing electric
power outside its boundaries, and within the service territory of an
electrical corporation as that territory existed on January 1, 2000,
or within the territory of a local publicly owned electric utility
providing electric distribution services as of January 1, 2000, is
subject to property taxes.
(2) The construction or acquisition of a facility that is
described in paragraph (1) shall be financed without tax exempt
financing.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard 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.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.