BILL NUMBER: SB 1939 CHAPTERED
BILL TEXT
CHAPTER 1041
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2000
APPROVED BY GOVERNOR SEPTEMBER 30, 2000
PASSED THE SENATE AUGUST 31, 2000
PASSED THE ASSEMBLY AUGUST 29, 2000
AMENDED IN ASSEMBLY AUGUST 28, 2000
AMENDED IN ASSEMBLY AUGUST 18, 2000
AMENDED IN ASSEMBLY AUGUST 9, 2000
AMENDED IN ASSEMBLY AUGUST 7, 2000
AMENDED IN SENATE MAY 18, 2000
AMENDED IN SENATE MAY 15, 2000
AMENDED IN SENATE MAY 3, 2000
AMENDED IN SENATE APRIL 13, 2000
AMENDED IN SENATE APRIL 5, 2000
AMENDED IN SENATE MARCH 28, 2000
INTRODUCED BY Senators Alarcon, Hughes, Murray, Polanco, and Solis
(Coauthor: Assembly Member Calderon)
FEBRUARY 24, 2000
An act to amend Section 385 of, and to add Section 9607 to, the
Public Utilities Code, and to amend Section 21100 of the Water Code,
relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1939, Alarcon. Public utilities: electric power: irrigation
districts.
(1) Existing law requires each local publicly owned utility to
establish a nonbypassable usage based charge to fund investments in
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 a local publicly owned electric utility
that has not implemented programs servicing low-income electricity
customers to perform a needs assessment, and establish low-income
services, as prescribed, thereby imposing a state-mandated local
program. Because a violation of this provision would be a crime,
this bill would impose a state-mandated local program by creating a
new crime. The bill would set forth certain related legislative
findings.
(2) The Irrigation District Law generally requires a member of the
board of directors of an irrigation district to be a voter and a
freeholder of the district and a resident of the division that the
director represents at the time of nomination or appointment and
during the director's entire term. That 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 remove that requirement that a director be a
freeholder of the district, and would instead require each director
to be a voter and a landowner in the district and a resident of the
division he or she represents at the time of his or her nomination or
appointment and throughout his or her term, except as provided.
The bill would prohibit a district from constructing, leasing,
acquiring, or operating facilities for the purpose of serving retail
electric customers located in the service territory of an electrical
corporation or a local publicly owned electric utility unless the
district provides to the customers of the electric corporation or
local publicly owned utility certain programs and services that are
comparable to those of the current distribution service providers,
and would require the district to certify by ordinance certain
matters. Because this bill would increase the duties of local
entities, it would impose a state-mandated local program. The bill
would provide that these restrictions would not become operative if
AB 2638 is enacted and becomes operative.
(3) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature to encourage
irrigation districts that provide retail electric service, to consult
with community advisory boards comprised of community members
representing low-income customers in order to implement the
low-income programs pursuant to paragraph (4) of subdivision (a) of
Section 385 of the Public Utilities Code. These low-income programs
include, but are not limited to, rate discounts for low-income
customers and nonrate discount low-income energy efficiency programs.
(b) It is the intent of the Legislature to encourage irrigation
districts to work with community-based organizations, community
action agencies, or community-based weatherization providers to
implement these programs. It is the intent of the Legislature that
irrigation districts adopt low-income programs by July 1, 2001.
SEC. 2. Section 385 of the Public Utilities Code is amended to
read:
385. (a) 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.
(4) Services provided for low-income electricity customers,
including, but not limited to, energy efficiency services, education,
weatherization, and rate discounts.
(b) Each local publicly owned electric utility that has not
implemented programs for low-income electricity customers including
targeted energy efficiency services and rate discounts based upon the
income level of the customer, or completed an assessment of need for
those programs, on or before December 31, 2000, shall perform a
needs assessment for the programs described in paragraph (4) of
subdivision (a) and shall hold one or more public meetings, after
notice, to review the findings of the needs assessment. Following
the public meetings, the governing body of the local publicly owned
electric utility shall determine the amount of the total funds
collected pursuant to this section to be allocated to low-income
programs, including, but not limited to, targeted energy efficiency
services, education, weatherization, and rate discounts. In making
its decision on the need for the programs, the governing body shall
consider all of the following:
(1) The number and income level of low-income customers that
reside in the service area of the utility.
(2) The availability of home weatherization services to low-income
customers pursuant to Section 2790.
(3) The availability of in-home energy efficiency education in the
utility's service area.
(4) Other factors that may indicate a need for low-income
services.
(c) Following a determination pursuant to subdivision (b) that
low-income services are needed, the local publicly owned utility
shall promptly implement or expand those programs. The local
publicly owned electric utility shall work with existing
weatherization providers to implement energy efficiency, education,
and weatherization programs.
SEC. 3. 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 purpose of
serving retail electric customers located in the service territory of
an electrical corporation or a local publicly owned electric utility
unless the district provides to the customers of the electric
corporation or local publicly owned utility public purpose programs,
universal service, customer protection, and environmental policies
regarding distribution facilities that are comparable to those of the
current distribution service providers.
(c) Prior to the construction, lease, acquisition, or operation of
facilities for the purpose of serving retail electric customers
located in the service territory of an electrical corporation or a
local publicly owned electric utility, a district shall certify by
ordinance, consistent with the needs determination provided for in
Section 385, all of the following:
(1) The district has established and funded public purpose and
low-income programs in accordance with Section 385.
(2) The district will provide universal service to all retail
customers who request service within reasonable physical proximity to
the district's distribution or transmission wires and poles allowing
for line extensions and service, at published tariff rates and on a
just, reasonable, and nondiscriminatory basis, comparable to that
provided by the current distribution service provider.
(3) The district will provide consumer protection and direct
transaction provisions comparable to those established for the
current distribution service provider and the district has
established environmental policies to minimize or eliminate the
duplication of electric transmission or distribution facilities.
(d) In certifying its low-income programs pursuant to subdivision
(c), a district shall follow public notice and hearing procedures and
make detailed findings on the record supporting its decision.
SEC. 4. Section 21100 of the Water Code is amended to read:
21100. (a) Each director, except as otherwise provided in this
division, shall be a voter and a landowner in the district and a
resident of the division that he or she represents at the time of his
or her nomination or appointment and through his or her entire term,
except in the case of the director elected at a formation election.
A director elected at a formation election shall be a resident and
landowner in the proposed district at the time of his or her
nomination and a resident of the division that he or she represents
during his or her entire term.
(b) In any district having no more than 15 landowners who are
voters in the district, a person need not be a voter but shall be
qualified to be a director of the district if he or she is a
landowner of the district at the time of his or her nomination or
appointment and during his or her entire term.
(c) In a district providing retail electricity for residents of
the district, each director, except as otherwise provided in this
division, shall be a voter of the district and a resident of the
division that he or she represents at the time of his or her
nomination or appointment and during his or her entire term, except
in the case of a director elected at a formation election. A
director elected at a formation election shall be a resident in the
proposed district at the time of his or her nomination and a resident
of the division that he or she represents during his or her entire
term.
SEC. 5. Section 2 of this act, adding Section 9607 to the Public
Utilities Code, shall not become operative if Assembly Bill 2638 of
the 1999-2000 Regular Session is enacted and becomes operative.
SEC. 6. 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.